Power bills going up...again - KUAM.com-KUAM News: On Air. Online. On Demand.

Power bills going up...again

Posted: Updated:

Expect your power bills to go up again.  GPA says rising fuel oil prices may mean the average residential power bill will increase by another $12.70 a month.  GPA General manager John Benavente says oil prices are now hovering at $50 to $60 a barrel, and so at the current power rates GPA will fall well short of their fuel recovery costs.

That means they need to adjust rates through what's now commonly known as the or levelized energy adjustment clause (LEAC). He said, "It looks like if we don't increase the LEAC we could end up with a $15 million under-recovery, so we decided to take that $15 million and cut it in half, just like we did the last time so that we could gradually work in the increases instead of one lump sum at a time."

By law, the LEAC can be adjusted every six months. As Benavente noted, back in February Instead of full recovery, GPA opted to go for half, raising the LEAC from 8.6 cents per kilowatt hour  to 10.5 cents. Now the proposed Increase will go from the current 10.5 cents to 11. 7 cents, or 6% of the total average bill. If it's any consolation, Benavente says that's still well short of the recent high of 20 cents a couple of years ago.  The new rates still require Public Utilities Commission approval before they kick in.

"So it'll be for the period August 1 to January 31 of next year," he stated.

  • NEWS HEADLINESMore>>

  • THINK PINK DAY at KUAM

    THINK PINK DAY at KUAM

    Today, the stations of KUAM will celebrate our  annual Think Pink Day in commemoration of Breast Cancer Awareness Month. 

    More >>

    Today, the stations of KUAM will celebrate our  annual Think Pink Day in commemoration of Breast Cancer Awareness Month. 

    More >>
  • DOE schools in session, storm will pass SE of Guam today

    DOE schools in session, storm will pass SE of Guam today

    Tropical Depression 27W is now a Tropical Storm. Guam and Rota  remain under a Tropical Storm Watch. It is tracking to pass southwest of Guam sometime today.  Maximum sustained winds are at 45mph.  Guam remains under a Small Craft and High Surf Advisory.  Storm shelters are now open at the Yigo Gym, Agana Heights Gym, and Talofofo Gym. Department of Education Superintendent Jon Fernandez announced via twitter that there WILL BE classes today for public schools.More >>
    Tropical Depression 27W is now a Tropical Storm. Guam and Rota  remain under a Tropical Storm Watch. It is tracking to pass southwest of Guam sometime today.  Maximum sustained winds are at 45mph.  Guam remains under a Small Craft and High Surf Advisory.  Storm shelters are now open at the Yigo Gym, Agana Heights Gym, and Talofofo Gym. Department of Education Superintendent Jon Fernandez announced via twitter that there WILL BE classes today for public schools.More >>
  • Guam in COR4, but storm shelters opening at 11pm

    Guam in COR4, but storm shelters opening at 11pm

    Although Guam remains in Condition of Readiness 4, GovGuam will be opening emergency shelters for those who might need them beginning at 11 o'clock tonight.  The shelters are located at the Yigo Gym, Agana Heights Gym and Talofofo Gym.

    More >>

    Although Guam remains in Condition of Readiness 4, GovGuam will be opening emergency shelters for those who might need them beginning at 11 o'clock tonight.  The shelters are located at the Yigo Gym, Agana Heights Gym and Talofofo Gym.

    More >>
Powered by Frankly