By Pacific Island Times News Staff
The Guam Power Authority is anticipated to save an estimated $15 million over six years through the refinancing of its 2012 Series A revenue bonds, according to Sen. Joe San Agustin.
Senators on Friday passed San Agustin's Bill 212-36, which would authorize GPA and the Guam Economic Development Authority to go to the bond market for the refinancing of this bond.
“We are fortunate that GPA is looking at creative ways to save millions of dollars in debt service and applying these savings to the cost of maintaining and building new power generation facilities," San Agustin said.
"We are hopeful that the 5 percent interest on this bond will be adjusted to around 3.2 percent so we can maximize GPA’s annual cash flow savings of approximately $15.1 million from 2024 through 2030, which will trickle down to ratepayers when the new generation facility is built,” San Agustin said.
Bill 212-36 is one of two bills requested by GPA. The other, Bill 213-36, seeks to request a waiver of the application of law that prohibits a power generation facility from being built within 1,500 feet of a school. The matter has been discussed widely by the stakeholders and residents of Piti where the new facility is planned.
Bill 212 ushers support for Bill 213 as it will keep costs stable in the build of the Harmon facility while using cleaner, low-sulfur diesel to be utilized in the generation facility in both locations.
The bond will require approval from the Guam Public Utilities Commission.
“I am grateful for the work of all the professionals of GPA and their determination to ensure Guam meets the requirement for clean energy by 2030," San Agustin said.
He said the legislature must continue to provide GPA with the tools that will help Guam meet the goal.
"Having power in our homes and workplace is the result of GPA’s diligence and efforts and we are part of the plan that guarantees our power remains reliable and available,” SanAgustin said.