By John O’Connor
For Variety
HAGÅTÑA (The Guam Daily Post) — The Public Utilities Commission has approved a rate increase for the Levelized Energy Adjustment Clause.
Beginning in July, the LEAC will increase to about 19.4 cents per kilowatt-hour, a nearly 6-cent increase from the current rate of 13.58 cents per kWh. The new rate is set to remain in effect through January 2027.
For the average residential customer using 1,000 kilowatt-hours per month, the rate hike translates to an increase of $58.31 in the total monthly power bill.
The LEAC is the portion of a power bill that largely covers the Guam Power Authority’s fuel costs.
The rate hike comes amid significant increases in GPA’s fuel costs due to the U.S.-Israel war with Iran and the latter’s closure of the Strait of Hormuz, a critical shipping route for much of the world’s fuel supply.
GPA sources its fuel from Asia, which obtains crude oil from the Middle East, where tankers must pass through the strait.
