Power credits proposed, Guam energy program launched amid fuel price surge

By Pacific Island Times News Staff

With fuel prices predicted to surge amid the escalating war in Iran,

Sen. Will Parkinson is proposing a new energy credit program to mitigate the impact of a predicted energy crisis and subsequent power rate hike amid the escalating war in Iran.

The proposal would continue the power credit program that has previously delivered direct relief to Guam households during periods of severe cost of living pressure, Parkinson said.

Working families on Guam are about to feel the shock of rising global fuel prices again,” he said. “When energy costs surge, it does not just affect the pump or the power bill. It ripples through the entire economy, raising the price of groceries, rent, and basic necessities. Power credits are the fastest and most direct way to help families weather that storm.”

The Guam Power Authority last year reduced the levelized energy adjustment clause portion of the ratepayers’ power bills. However, the looming fuel supply shortage is anticipated to result in a new rate increase.

Recent developments in the Middle East have disrupted global oil markets. Guam’s energy supply chain is particularly vulnerable to these shocks because the island’s fuel primarily arrives from refineries in Singapore.

Those refineries rely heavily on crude oil from the Persian Gulf region. The indefinite closure of the Strait of Hormuz, a critical global oil shipping lane, has significantly disrupted that supply chain and is expected to drive fuel prices higher.

Sens. Jesse A. Lujan and Christopher M. Dueñas, called on GPA to prioritize immediate ratepayer relief by applying liquidated damages tied to delays at the Ukudu power plant toward offsetting potential LEAC increases.

The lawmakers’ call comes as Guam families, seniors and small businesses continue to face rising energy costs and growing financial pressure.

In just one month, local fuel prices surged dramatically. Regular rose from $4.779 to $6.079 per gallon, up $1.30 or 27.2 percent; mid-grade rose from $5.169 to $6.469, up $1.30 or 25.1 percent; and premium surged from $5.249 to $8.049, up $2.80 or 53.3 percent. Lujan and Dueñas said those numbers make clear that consumers need relief now, not promises of savings later.

Public reporting indicates that GPA has assessed roughly $22 million in liquidated damages tied to the delayed delivery of the Ukudu power plant, including $7.44 million for October, $7.2 million for November and $7.44 million for December.

GPA has also stated it owes the contractor approximately $5.2 million for energy provided to Guam’s electrical grid during testing between Sept. 30 and Christmas, which helped stave off load shedding while full commissioning remained delayed.

 Even after accounting for that obligation, the senators said there remains roughly $16.8 million that should be prioritized for immediate ratepayer relief.

Applications for the crisis program opened on March 16 and will continue until August 14, 2026, or until funds are exhausted.

ADVERTISEMENT

Last week, the governor’s office launched Guam’s Low Income Home Energy Assistance Program, which provides financial assistance to reduce costs associated with home energy bills.

The program, administered by the Guam Department of Public Health and Social Services, is funded with a grant amounting to $742,930 from the U.S. Department of Health and Human Services.

The program provides financial assistance, up to $1,000 of power utility debt relief, to income-qualifying households facing imminent disconnection. 

The governor’s office said the program will not pay for those only showing a past due amount or past due amounts that predate the current fiscal year.

The Cooling Assistance Credit Program, which will provide a $100 credit over a 5-month period (April to August) to help income-qualifying households reduce their monthly power utility costs and keep peace of mind while enduring Guam’s heat.

Households do not need to be in arrears to apply; however, due to the limited amount of funds allocated to the credit program, applications will only be accepted for a two-week period beginning on Monday, March 16, 2026, to Friday, March 27, 2026. Applications are on a first-come, first-served basis for the credit program. 

 “Over the last two years, the program successfully assisted over 1,300 households with their energy bills. The credit component has helped families by providing some financial relief over a 5-month span,” said Rebecca Respicio, GEO director.

For details on LIHEAP eligibility and benefits, visit energy.guam.gov. Applications will be available online, or hard copies can be picked up beginning March 16, between 9 a.m. and 4 p.m. at the Guam Energy Office, 548 N. Marine Corps Drive, Tamuning. Submissions will only be accepted in person at the Guam Energy Office. Applications must be complete with copies of supporting documents to be accepted. 

Subscribe to

our digital

monthly issue