HAGÅTÑA (The Guam Daily Post) — Ratepayers should be ready to watch their pocketbooks as July 1 marked the first of two planned increases in the fuel surcharge for the next few months. The rate had gone up from about 20.9 cents per kilowatt-hour, to about 25 cents per kWh.
For residential customers, this increase represents an average increase of 13.72%, or an additional $42.12, on the total power bill for average residential consumption.
The second rate hike will take place on Sept. 1. The surcharge will go up again to a little more than 29 cents per kWh. That’s an additional 12.72% increase, or $44.41, added to the average residential power bill.
The governor has proposed a $100 monthly credit program over five months to help ease power rate hikes, but a bill to do this has not yet been introduced.
Meanwhile, the Guam Power Authority has a number of projects that are intended to reduce fuel imports and save money for ratepayers. These include utility-scale solar facility projects, such as the newly commissioned solar farm owned by KEPCO Mangilao Solar LLC.
This is the second utility-scale solar farm to come online and should save GPA about 240,000 barrels, or 10 million gallons, of fuel each year. At about $127 per barrel, that much fuel amounts to about $30.5 million in costs.
GPA will purchase solar power from KEPCO Mangilao Solar at a rate of 8.5 cents per kWh, which is anticipated to save $18.5 million per year compared to the cost of fuel. When it announced approval of the recent rate hikes, GPA noted that rates would have been higher if not for the Mangilao farm.
There is another solar farm in development by Hanwha Energy Corp. This project should deliver similar savings as the KEPCO facility. A third phase solar project is also in the works.
The commissioning of the new Ukudu power plant in 2024 is expected to stack savings for ratepayers when combined with the solar projects
The utility’s goal is to bring the surcharge down by 2025, to 17 cents per kWh if fuel costs remain high.
Power-saving tips
GPA officials have sent customers tips on how to reduce power usage and cost. Here are some of them:
• Use outdoor air to help cool down your home before tuning on the air-conditioning. Secure gaps in doors and windows to prevent cool air leakage and use curtains or shades to prevent sunlight heat from entering your home.
• Clean air conditioner filters.
• Cover your windows with curtains or shades to prevent the sunlight’s heat from entering.
• Plug electronics into a power strip and turn off when not in use. Also unplug small appliances, such as coffee makers, that are not in use and unplug devices that have been fully charged.
• Wash full loads of laundry in cold water at night, after peak hours.
• Set your water heater between 110°F to 120°F. But if you have a medical condition, consult your doctor first.
• Turn off the lights when not in area.
GPA also has a rebate program for buying energy efficient appliances.
People line up at the Guam Power Authority and Guam Waterworks Authority satellite office June 20 at the Julale Shopping Center in Hagåtña. Power rates increased July 1 and will again increase in a few months.
