by John Davis, KUAM News Tuesday, May 06, 2008 Subscribe to John's newsfeed   E-mail this article Printable version KUAM Toolbar Web Widgets Get RSS headlines

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The Consolidated Commission on Utilities spent the early part of Tuesday evening discussing options left on the table regarding payment of the Department of Public Works' streetlight bill. Those options were also discussed during a work session held earlier today. The four options discussed to pay down the agency's $13.4 million streetlight are:

Option 1 - disconnect enough streetlights to ensure there is funding to pay for ongoing streetlights and a portions of past due billings. CCU chairman Simon Sanchez says according to the appropriations from motor vehicle registrations, 60% of the streetlights could remain running, but the question is who would determine which streetlights would go out.

Option 2 - wait until DPW becomes delinquent then disconnect certain streetlights until they can fit within the streetlight fund capability. CCU chief financial officer Randy Wiegand says DPW has been current this year but will run out of funding to pay for streetlights come July.

Option 3 - wait until DPW becomes delinquent then begin disconnecting non-essential agencies and work with the Public Utilities Commission to establish a surcharge for all government agencies. The surcharge would be applied to line agencies with a short amortization period would allow the Guam Power Authority to disconnect any agency for failure of another agency to pay. PUC consultant Jim Maden stated if GPA doesn't disconnect agencies, recent rate relief is reversed, meaning the utility agency cannot raise rates by 6% on June 1.

Option 4 - immediately begin disconnecting public streetlights; however, GPA's Graham Botha says the Commission is required by law to give the Guam Legislature 30 days notice before disconnection. That notice was given to the legislative body last November, and GPA reaffirmed their position that from a financial and legal standpoint, the Government of Guam's streetlight account has been delinquent for the last 10 years and is subject to disconnection at any time.

And after much deliberation, the CCU decided to address the local government's delinquent streetlight bill by immediately beginning disconnection of public streetlights. Still, the Commission is required by law to give the Legislature 30 days notice before disconnection. Again, such notice was given last November and again two weeks ago, after Speaker Judi Won Pat took the helm.

After hearing the options presented by GPA management during today's working session, chairman Sanchez says the four options presented were creative ways to present payment options for a very old bill, and it is no longer fair to penalize ratepayers and other current GovGuam agencies because of the inability to pay down the debt. After GPA notifies the public of their plans to disconnect, streetlight disconnections would begin as early as May 12. Reconnection fees for streetlights would total $25 per streetlight for 15,000 streetlights.