Guam Power Authority spokesman Art Perez said the agency will submit a proposal to increase the Levelized Energy Adjustment Clause, or LEAC, by 9.84 percent before the Consolidated Commission Utilities tonight during their regular meeting.
LEAC is the fuel recovery charge portion of a power bill.
If this is approved, Perez said consumers will pay an additional $23.20 for a 1,000-kilowatt residential bill.
“If approved by the CCU and Public Utilities Commission, it will take effect June 1st and forward,” he said.
This is the second time in just a few months that GPA sought to raise the LEAC. In December of last year, the agency recommended a 17 percent increase, but the proposal went up to 18.53 percent, due to the rise in oil prices.
“When we last filed in December, the price was $83 per barrel. Today it is trading at $106. That is a 28 percent in the total cost per barrel of fuel,” said Perez. “Oil is driving this LEAC.”
In February, the PUC approved the hike.
Perez said the proposal is just reflective of what is happening globally.
“GPA is not immune to those price fluctuations,” he added.
