by Mindy Aguon
Guam - The Guam Power Authority intends to pay $2.5 million to the General Fund for the payment in lieu of taxes law that's been on the books for years but hasn't been enforced until recently. The utility agency settled on the $2.5 million payment instead of what was originally invoiced - $12.5 million. Consolidated Commission on Utilities chairperson Simon Sanchez says while a resolution was passed to fund the payment, it must first garner approval from the public utilities commission.
"This payment in lieu of taxes will have an impact on rates so we need their permission to incur it and also they have to give us the rate relief to pay for it so we're asking for the rate increase from the PUC to pay for this $2.5 million," Sanchez said.
Sanchez says if given the approval, the agency may advance the money knowing that they will be reimbursed by ratepayers through a less than 1% increase that will likely be an added surcharge to power bills for a year or two until the $2.5 million is paid off.