The Guam Public Utilities Commission has approved the Guam Power Authority’s petition to reduce a fuel recovery charge by 20.3%, effective February 1, 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,” public power utility GPA noted.
The newly adopted Levelized Energy Adjustment Clause rate decreases from $0.261995 to $0.208802 per kilowatt-hour, reflecting declining global fuel prices.
The GUC Administrative Law Judge’s (ALJ) 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.”
GPA General Manager John M. Benavente, P.E., welcomed the decision, emphasizing the Authority’s commitment to affordability and reliability. “We understand how energy costs impact our community, and this reduction reflects our ongoing efforts to deliver reliable power at the lowest cost possible. 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.”
The 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," it said.
The new Ukudu Power Plant, set for commissioning by September 2025, 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, it said.
Customers will see the lower Fuel Recovery Charge (LEAC rate) reflected in their power bills starting February 1, 2025. The new Fuel Recovery Charge (LEAC rate) will be in effect through July 31, 2025.
