Pangelinan wants GPA bonuses audited

by Nick Delgado

Guam - Finance Committee chairman Senator Ben Pangelinan wants the Office of Public Accountability to audit bonuses issued by the Guam Power Authority to independent power producers. Pangelinan questioned if the bonus clauses in the contract result in savings to GPA and whether the savings are being passed on to ratepayers of the utility agencies.

GPA general manager Joaquin Flores says the IPP ensures baseload power stations are always operating, and prevents the use of running diesel units. He calls the bonuses a technique to have both the contractors and GPA win, adding, "We will be glad to cooperate and participate with any audit, we are coming to the conclusion of our external audit very soon, the OPA is involved from the very start of our audit, and it's coming that there may be an issue with our IPP contracts despite having our auditors review these very significant contracts every year."

In the meantime, the senator believes that a review of the success or failure of the bonus incentives is necessary prior to issuing any new RFPs for independent power beyond 2015.