Guam ratepayers face power bill hike

By Pacific Island Times News Staff

The Guam Power Authority’s proposal for a fuel recovery surcharge increase is now with the Public Utilities Commission for final action following the Consolidated Commission on Utilities' approval on Tuesday.

 If approved, the average residential customer using 1,000 kilowatt-hour a month, would see a $58 increase to their monthly bill effective July 1.

GPA is seeking to raise the fuel recovery surcharge, also known as levelized energy adjustment clause, from approximately 13.6 cents to 19.4 cents per kilowatt-hour, an increase of approximately 5.8 cents per kilowatt-hour.

GPA noted that regional fuel costs continue to place pressure on Guam utilities.

“We understand that customers are concerned about any increase to their monthly bills,” said John M. Benavente, GPA general manager.

John Benavente

“This recommendation is not intended to recover the full

projected fuel under-recovery at once. It is intended to keep

that balance from growing while helping ensure GPA can

continue purchasing fuel and spread fuel cost impacts over

time, rather than asking customers to absorb a larger increase

all at once," he added.

GPA said that even with the proposed adjustment, the combined base and fuel surcharge rates would remain among the lowest rates in the region based on GPA’s regional rate comparison chart.

GPA expects approximately $27 million in fuel under-recovery by June 30. Fuel under-recovery occurs when the LEAC collected from customers is not enough to cover the actual fuel costs incurred to generate electricity.

Fuel shipment costs have increased sharply in recent months. GPA’s March fuel shipment was approximately $26 million, while the April shipment increased

to approximately $54 million. 

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GPA is also anticipating elevated pricing for its next fuel shipment at approximately $168 per barrel, or about $44 million, continuing pressure on fuel recovery and cash flow.

GPA noted that the LEAC is not a profit charge and does not pay for payroll, debt service, capital projects, or general operations. The LEAC is the

 mechanism used to recover the actual cost of fuel needed to generate electricity for customers, it added.

As Guam moves into warmer months, GPA encourages customers to look for simple ways to reduce daily energy use, especially from air conditioning 
and water heating. Using ceiling fans to help circulate cool air, setting air conditioners between 75°F and 77°F, installing a water heater timer, and turning off lights and appliances when not in use can help customers 
better manage their monthly bills.  Customers may also use MyEnergyGuam.com and Energy Xpert to monitor usage, review consumption patterns, and identify ways to save.

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