PUC hearing scheduled for GPA rate increase

by Ken Quintanilla

Guam - A hearing is set for this evening to gather the public's comments on how they feel about the Guam Power Authority's proposed base rate increase. Although GPA initially proposed to raise your power bill by 7.5%, spread out over the next five years with the first year seeing a 4.6% increase, GPA along with Georgetown Consulting and DOD have instead agreed to do a much smaller rate increase of only 1.8% for the first year.

"We know what to expect, no one likes a rate increase, we doubt anyone's going to testify to do more, but you want to hear that but you also get a chance to explain the GPA side of the story to the public that come and they get to hear why there's a rate increase," said Simon Sanchez, chairman of the Consolidated Commission on Utilities. "We have to keep improving the system, we have tremendous amount of improvements that are already going on, we've borrowed the money and now we need to put ourselves in a position to pay for the money."

He adds the rate increase stems from the fact that GPA borrowed $220 million to reinvest in the system such as improvements to generators, transmission and distribution line upgrades, and GPA's new headquarters building in Mangilao.  The hearing is happening right now at the GCIC Building with others on Wednesday at the Agat Senior Center and Thursday at the Dededo Senior Citizen Center, all happening at six o'clock.

Should the PUC approve the rate hike, it would take affect on May 1.