Guam’s Consolidated Commission on Utilities recently approved a resolution authorizing Guam Power Authority to petition the Guam Public Utilities Commission for a base rate adjustment.
GPA also announced that it will seek approval from the CCU in May 2025 to petition the PUC for a reduction to the Fuel Recovery Charge, or Levelized Energy Adjustment Clause (LEAC).
These adjustments are designed to work together to lower power bills for all GPA customers, GPA noted.
If approved by the PUC, the base rate adjustment would take effect on September 1, 2025, and GPA anticipates a LEAC reduction to be implemented at the same time, pending approval later this year.
Proposals include:
- Base Rate Increase: 3 cents per kWh for the average residential customer using 1,000 kWh per month.
- LEAC Reduction: 13-14 cents per kWh, reflecting reduced fuel consumption from the new Ukudu Power Plant and the retirement of Cabras 1 and 2 baseload generator units.
Together, these adjustments if approved would result in a net reduction of approximately $42 per month on the average residential customer’s power bill, in addition to the $53 monthly reduction that took effect in February 2025.
Combined, these reductions represent an estimated total monthly savings of $95 compared to power costs prior to recent adjustments.
The proposed base rate adjustment is needed to cover fixed costs and payments associated with the Ukudu Power Plant and other system investments, ensuring long-term reliability and grid stability. The proposed LEAC reduction is made possible by anticipated fuel savings from the Ukudu Power Plant, which is expected to reduce fuel consumption by over 900,000 barrels per year and allow for the retirement of older, less efficient generators.
With CCU approval, GPA will file its formal petition for the base rate adjustment to the PUC in late May or early June 2025. The PUC will review the filing, conduct hearings, and consider public input from the public and independent consultants before making a final determination on the proposed rate adjustment.
GPA will conduct outreach in the coming weeks to ensure customers are informed about the proposed rate adjustment and understand how the base rate increase and LEAC reduction will work together to lower power bills.
