Guam - With power bills expected to increase in the New Year, residents can expect to pay more for water but the base rate adjustment won't take affect until October. Replacing and upgrading the wastewater system is expected to cost between $200 million and $300 million, which will mean rates will more than double over the next decade.

"The reconstruction of the waste water system is going to occur. The court has insisted and we agree we've been sending untreated wastewater into the ocean for the last twenty years and it needs to stop and it will cost $200-$300 million it will require significant rate increases," he said.

October's 7 to 8% baserate adjustment is the third of the four-ear rate plan that was already approved by the PUC. The Guam Waterworks Authority is mandated through a court order to make the repairs to the wastewater system over the next ten years. 

The agency intends to borrow the money and raise rates to pay for it.