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Another power rate hike looms


by John Davis, KUAM News
Wednesday, May 21, 2008

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Just when you thought things couldn't get any worse, the Consolidated Commission on Utilities will seek another increase of the Levelized Energy Adjustment Clause rate...meaning power bills could go up again. The Guam Power Authority contends it only has two options - not to increase the LEAC (meaning the agency would run out of cash for fuel next month and run out of fuel completely in late-July or early-August); or to petition for an emergency adjustment beginning June 1, which would increase rates by 14.68%, translating to a $22 increase a month for average customers.

CCU chairperson Simon Sanchez told KUAM News, "This would be on top of the base rate adjustment that would occur June 1 if the streetlights aren't paid. The projected cost of both adjustments would be about a 12-13% increase in your bill effective June 1."

An increase in the LEAC rate was just approved in March. This latest request will be addressed by the Public Utilities Commission on May 27.