

By Pacific Island Times News Staff
Beginning Feb. 1, Guam's ratepayers will pay a lower fuel recovery charge,
following the Public Utilities Commission's approval of the Guam Power Authority’s petition for a 20.3 percent rate cut.
GPA said the new rate, which will save residents $50 on monthly power bills, will be in effect through July 31, 2025.
"This adjustment will result in significant savings for residential customers,
lowering monthly bills by approximately $53.19 for average residential customers using 1,000 kilowatt-hours," GPA said.
The newly adopted rate for fuel recovery charge decreases from 26 cents to 20.8 cents per kilowatt-hour, reflecting declining global fuel prices.
“We understand how energy costs impact our community, and this reduction reflects our ongoing efforts to deliver reliable power at the lowest cost possible," said John M. Benavente, GPA general manager.
"With the new Ukudu Power Plant coming online later this year, we look forward to even greater efficiency, overall energy savings and reduced power bills for Guam’s families," he added.
The Administrative Law Judge’s report highlighted the justification for this reduction noting, “The reduction of the LEAC factor is justified by the decline in fuel prices.” The report further stated, “Fuel prices are always volatile and speculative. However, it seems that there is a good possibility that fuel prices will continue to decrease.”
The fuel recovery charge, also known as "levelized energy adjustment clause," or LEAC, is a pass-through charge adjusted semi-annually to account for changes
in global fuel prices.
"By aligning rates with fuel market trends, GPA continues to balance the need for affordable energy with the operational requirements of providing power
to Guam’s residents," GPA said.
Power officials said the new Ukudu Power Plant, which is set to be commissioned in September, will further reduce fuel consumption by approximately 879,000 barrels annually.
"Once operational, this state-of-the-art plant will deliver 198 MW of cleaner and more resilient energy, driving future LEAC rates down and offering customers sustained relief from fluctuating fuel prices.,' GPA said. "As testing begins in February, GPA remains focused on integrating this critical asset to enhance Guam’s energy future."
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