And there could still be another 18 percent increase looming because of a Public Utilities Commission recommendation.
The PUC Monday night approved a rate increase of 3.8 percent for residential customers and 7.3 percent for commercial and government customers.
The rate increase is part of the blended effect of several increases and decreases.
The first part includes a water and sewer rate increase from a four-year rate plan the PUC approved in 2009. The second part is actually a reduction in the Navy/PUC surcharge, while the last part is a surcharge to pay for the health retirement costs of Guam Waterworks Authority retirees.
“The combination of those three adjustments will lead to their bill going up by 3.8 percent. A typical customer using 10,000 gallons today pays $82.44. On October first, they will pay $85.58,” said Consolidated Commission on Utilities Chairman Simon Sanchez.
But the more significant impact on water ratepayers could come from a proposed 18.14 percent water rate hike over an 18-month period.
A PUC order obtained by Variety states, “[Administrative Law Judge David Mair] found that as a result of the rate investigation, the evidence in the administrative record suggested that GWA must increase its rates in order to recoup the $18.3 million obligation mandated under [Public Law] 30-145.”
According to the PUC order, the ALJ further found that “the most viable option to recouping the $18.3 million loss in investment capital was to impose a short-term surcharge to GWA’s existing user charge.”
P.L. 30-145, authored by Senator Ben Pangelinan, was enacted into law in May 2010. The PUC is now trying to enforce that law by ordering GWA to pay the $18.3 million, which is meant to pay for tax refunds and COLA payouts to government of Guam retirees.
The PUC on Monday approved a recommendation Mair additionally made to conduct a public hearing on Oct. 13 on the proposed 18 percent increase.
However, the entire matter is still under litigation. GWA is currently challenging P.L. 30-145 in court.
