HAGÅTÑA (The Guam Daily Post) — The Public Utilities Commission has voted to implement another set of fuel surcharge increases beginning in two weeks. Starting July 1, the fuel surcharge, officially known as the Levelized Energy Adjustment Clause, or LEAC, will go up to about 25 cents per kilowatt-hour. It is currently at 20.9 cents per kWh.
For residential customers, this first increase represents an average increase of 13.72%, or an additional $42.12, on the total power bill for average residential consumption, according to the Guam Power Authority.
By 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 fuel surcharge reflects fuel prices, and the upcoming rate hikes are a direct result of the high cost of fuel.
“We understand the hardship this causes our customers. As we are all feeling the increase at the gas pumps, there is a direct correlation between the increase in fuel prices to the increase in the LEAC. We are tirelessly looking for solutions to lighten the burden on our customers,” GPA General Manager John Benavente stated in a GPA press release.
He noted that the rates would have been higher if not for the new solar farm in Mangilao. The facility is expected to save $1.5 million per month in reduced fuel expenses.
Communicating for offset
“General Manager Benavente and his team have been communicating with the governor’s office to identify a funding source to offset increases in the fuel surcharge so customers don’t have to bear the burden. GPA is also working with the 36th Guam Legislature to offset the proposed increase,” GPA stated in the release.
GPA also highlighted in the release that the other significant portion of the power bill, the base rate, has more or less remained steady over the last 25 years, meaning rate increases have been the result of oil prices.
“Guam and the world have been hit with the uncontrollable price of crude oil. I’m confident we will get through this with our customers, and find relief when the new Ukudu power plant is commissioned,” Assistant General Manager Melinda Mafnas stated in the release.
The utility continues to urge the community to save energy to keep power bills low.
The Gloria B. Nelson Public Service Building, which houses the Guam Power Authority main office, is seen May 11, 2022 in Mangilao.