by Clynt Ridgell, KUAM News Tuesday, March 27, 2007 Subscribe to Clynt's newsfeed   E-mail this article Printable version KUAM Toolbar Web Widgets Get RSS headlines

While senators aren't even halfway through reviewing Governor Felix Camacho's proposed revisions to the Fiscal Year 2007 budget, others are looking closely at a provision in the bill that may result in higher water and power rates for consumers. Consolidated Commission on Utilities chairman Simon Sanchez says he would like for the Guam Power Authority and Guam Waterworks Authority to take a closer look at one particular provision in the modified financial plan.

The provision, if passed, would require that all autonomous agencies make cost of living allowance payments for their retirees. "The biggest challenge for both the Guam Power and Guam Waterworks Authority and the CCU is we only get our revenues from ratepayers paying the Cola would be an increase in cost required by law similar to the supplemental annuities that were transferred to the autonomous agencies," said Sanchez, himself formerly a two-term policymaker.

The autonomous agencies already pay for supplemental annuities, however this provision in the governor's revised budget would make autonomous agencies like GPA and GWA pay for COLA in addition to supplemental annuities. Continued Sanchez, "GPA was able to absorb the supplemental annuities without asking for a surcharge but whether we can afford the COLA remains to be seen; we need to know who is eligible and how much GWA could not afford the supplemental annuities without a surcharge, so if the COLA is added on top of that GWA would be forced, I believe, to petition for another rate adjustment to the surcharge."

CCU chairman Sanchez says that any increase in cost to the utilities eventually ends up in an increase in cost to the ratepayers.