Guam - The rate increase to the Levelized Energy Adjustment Clause proposed by the Guam Power Authority at Tuesday evening's board meeting of the Consolidated Commission on Utilities was approved by the group. With a 17% increase in fuel cost to GPA over the last four months corresponding with an increase in the price of oil, GPA Spokesperson Art Perez explains that the increase was necessary to cover the department's cost and the result of an increase in the price of fuel.
Perez says residential customers who currently consume 1,000 kilowatt hours per month and pay $198 accordingly would have to pay $210.81 under GPA's proposed new rate. This is a 6.28% increase and in this instance, a difference of approximately $12. Perez noted, "The reason for the LEAC adjustment is due to the price of fuel".
Now that GPA management has received approval from the CCU to petition the Public Utilities Commission to review and adjust the LEAC rate, GPA intends to submit its petition before the week's end as the PUC requires forty-five days to review the petition before the rate can go into effect.
If this proposed rate is approved by the PUC it will be effective on February 1, 2010. This is the first LEAC upwards adjustment since last year.