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CCU approves LEAC adjustment
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by John Davis, KUAM News
Tuesday, May 20, 2008
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Consolidated Commission on Utilities members and management from the Guam Power Authority approved a resolution for an upward adjustment for the Levelized Energy Adjustment Clause (LEAC) rate, which takes up 70% of power bills. GPA has two options regarding raising LEAC rates:
- To let GPA not increase its LEAC rate, meaning the utility agency would run out of cash for fuel next month and run out of fuel completely in late-July or early-August
- To petition for an emergency LEAC adjustment June 1, which would increase rates by 14.68%, which means the average 1,000-kilowatt user per month would see an additional $22 increase to power bills
And let's not forget that should the Government of Guam fail to pay their fair share for streetlights, residents could see a 2.5% increase to their bill come June 1.
This past March the Public Utilities Commission approved GPA's request for a LEAC increase of 14% due to the rising cost of fuel; back then, fuel oil ran at $72 a barrel, compared to today's market charging $90 a barrel for fuel. The CCU expects the PUC to address the fuel cash shortage during this month's regulatory session.
As far as issues dealing with wastewater issues, GWA's sewer system, which supplies Tumon, Tamuning and the central villages on Guam (including the Guam International Airport) has reached its limit, GWA interim general manager John Benavente, along with GWA engineers, requested the CCU to declare a moratorium on new development. Benavente says the upgrades could take anywhere from 12-18 months.
Lastly in regards to streetlight disconnections, the CCU did agree to the Mayor's Council of Guam's request not to cut off streetlights around schools, bus stops and blind curves until school is released for the summer. However; this does not mean GPA will stop disconnecting streetlights. On Wednesday they will be in the villages of Yigo, Asan-Maina, and Santa Rita.
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