HAGÅTÑA (The Guam Daily Post) — The Guam Power Authority is proposing to increase the fuel surcharge in three phases beginning in July, possibly marking another hike in what has been a line of power rate increases starting last year.
Combined with the ongoing conflict in Ukraine and its adverse impacts on oil prices nationally, this latest proposal from GPA may be painful for ratepayers, but it isn’t surprising.
“That’s a natural thing. Because, as you know, oil prices are getting high because of the (Ukraine) war,” resident Jong Soo Lee said Friday as he exited from the Tamuning Post Office.
GPA has acknowledged the current circumstances form a dire situation. Not only would power costs potentially increase, but the summer weather is expected to result in higher power consumption as people try to keep cool amid Guam’s sweltering, humid heat.
“I’m turning on the (air conditioning) all the way in my apartment, so I need to pay more money. I have to pay,” Lee said. As the owner of his own tour guide business, Lee has felt the sting at the gas pump, which has more or less been seeing steady price increases.
Costs for his business have gone up 20% or 30% from fuel alone, according to Lee.
“Hard to pay (for) some energy, but I cannot do anything by myself, so I pay. I want them to decrease the price…but what can I do?” Lee added.
Another resident, Sherman Bernard Butler, said “everything’s going up,” so residents have to live within their means.
Meanwhile, higher power costs have led one couple to relocate. The pair, who were receiving military stipends for living off base, didn’t want to give their names, but did share that power costs got so high that bills began exceeding their stipend. That meant they’d have to pay the difference out of pocket.
The couple ended up moving to housing on base, where they said power is provided.
“We shut off the air-con, we water-blasted,” the wife of the couple said, as she explained how they tried to save on power. Their old neighbors were a married couple with no kids, but their power bill ended up being the same or a little more than theirs, “and we’re a family of five,” she added.
“There’s actually a lot of military families who live off base, who are paying even up to $1,000,” the wife said.
Jovyna Lujan, a merchandise manager, said she’s had to exercise a bit of conservation with her fuel usage because of higher gas prices.
“(I) plan my routes a little bit better, plan the timing of refueling my vehicle a little bit wiser and everything related to that within our family and on the job. It sure is a burden. We would all be happier if there was no crisis in Europe and this situation would go away and get back to normal, … but we still have to get on with our daily life.” Lujan said.
At home, Lujan has three adult children living with her. She said family members are trying to conserve power usage at home. They’ve replaced their air conditioners with more energy-efficient units, and they do have solar power at home.
“One can only empathize with families in general, those that have a greater burden, those that have a greater difficulty. When you think about that, you think about Gov. Leon Guerrero’s Prugråman Salåppe’, … there’s a good move there, … And as I understand it, several people across the island are taking advantage of that. At least there’s help there,” Lujan said.
Candidates’ takes
Following news of GPA’s proposed increases, Sen. James Moylan had asked the governor to provide relief either through an existing law or by pursuing a power bill payment assistance program, as he proposed in Bill 79-36, later making reference to more than $300 million in remaining American Rescue Plan funding.
The rival Democratic gubernatorial candidate team of Delegate Michael San Nicolas and Sabrina Salas Matanane called on Gov. Lou Leon Guerrero to release immediately $70 million in ARP funds to stave off the planned increase.
Leon Guerrero’s administration had announced it has released more $300 financial aid payments — using federal funds — to help cash-strapped residents. The administration stated that it assisted more than 10,000 households through Prugråman Salåppe’.
Planned increases
The first rate hike in GPA’s proposal would raise the current fuel surcharge of 20.9 cents per kilowatt-hour to 24 cents per kWh.
The second proposed hike would begin in September, upping the surcharge by 12%.
The final surcharge hike is proposed to begin in November and would last through the end of January, placing the surcharge at 29.6 cents per kWh.
The Public Utilities Commission will need to approve rate hikes, as the commissioners have the final say for any rate matters.
It’s too late to include GPA’s proposal in this month’s agenda, but the fuel surcharge may be on the agenda for the PUC’s June meeting.
Resident Jovyna Lujan speaks to the Guam Daily Post about her thoughts on the proposed power rate increase and energy cost increases in general.
