There may be some changes to your monthly power bill and you have a say in a series of public hearings through Friday. The Guam Power Authority is proposing a base rate adjustment to cover the cost of the Ukudu Power Plant. GPA wants to increase the base rate by about $0.03 and at the same time lower the fuel surcharge by about $0.02, which they say will help reduce the impact to customers' bills.

For the first time since 2013, the GPA is asking the Public Utilities Commission to increase the base rate by about three cents per kilowatt hour.  For the average residential customer, that means they could see about $30 added to their monthly power bill for every 1,000 kwH. 

GPA assistant chief financial officer Maripaz Perez explains during a media briefing Monday said, "The reason why we’re raising the base rate is because we need it to help us cover our financing payment to the Ukudu power plant. Think of it like a mortgage payment. So once it becomes operational, just like when you get a house and move in, you have to pay your monthly mortgage bill."

But she says this increase will be offset by their petition to lower the fuel recovery charge, or the LEAC, which represents 68% of the average power bill.  "Ultimately, our goal is although your base rate will go up, your LEAC will go down. Your total bill will [have] zero impact," she said.

GPA is looking to reduce the LEAC further by about $0.02 cents, with a goal of $0.135 to $0.128 per kilowatt hour, saving residential customers nearly $20 monthly every 1,000 kwH. 

Perez continued, "That is currently what we are looking at right now, but it's still not final. As we speak, there’s a lot of mechanisms still at play that still need to be finalized, but management will be presenting their recommendation on November 20th during a working session with the expectation of the final approval next week by the CCU in its November 25th meeting."

She said the Ukudu Power Plant is about 37% more efficient than the Cabras 1 and 2 power plants, which are nearly 50 years old and have been causing rotating outages. She adds the new power plant will reduce fuel imports by over 900,000 barrels per year.  "It will help us reduce our fuel consumption, thereby passing on those savings to our ratepayers. That has always been at the forefront of GPA’s mission," she said.

It should be noted the Ukudu Power Plant has faced several delays, from the COVID-19 pandemic, supply chain issues, Typhoon Mawar and most recently mechanical problems.

In the meantime, the proposals require final approval from the PUC, which will be hosting a series of public hearings this week on the base rate hike on Tuesday at the Dededo Senior Citizens Center; Wednesday at the Asan Community Center and Thursday at the Guam Election Commission office– all at 6:30 pm. 

If approved, both adjustments could effect early next year.