The second phase of the base rate increase took effect Monday.
GPA customers who use approximately 1,000 kilowatt hours per month will see an increase of about $5.68 on their bills, bringing their monthly bill to about $224.83.
Last month, the power company also increased its fuel surcharge, also known as the levelized energy adjustment clause or LEAC.
Although an extra $5 a month may not seem like a lot to most ratepayers, Dededo resident Ernie Wusstig said most households use more than 1,000 kilowatt hours a month. The $5.68 estimate quickly becomes $10 or even $20.
Wusstig, who has a residential as well as a commercial meter, says he typically spends an average of $400 a month to power his home and upwards of $2,000 to power his ranch.
“Everything is going up,” Wusstig said on Tuesday, adding that although he is tries to cut back on his power usage each month, any previous savings on power are meaningless with the new rate increases.
According to GPA officials, the agency expects nearly $10 million in revenue as a result of the rate increase. The money will be used to fund much needed capital improvement projects.
As a result of the rate increase, Wusstig said he is noticing a lot of island residents looking into renewable energy. However, he noted the high costs of solar and wind generators may prevent most power customers from purchasing units.
Although the money saved by switching to solar or wind generate power will eventually pay for the units in the long run, Wusstig said that many residents simply don’t have the money to invest in alternative energy.
