CCU backs Bill 52
Senator Tom Ada has reintroduced a bill that he hopes this time around will get passed and eventually save ratepayers some money on their power bill.
By KUAM Newsby Jolene Toves
Guam - Senator Tom Ada has reintroduced a bill that he hopes this time around will get passed and eventually save ratepayers some money on their power bill. During a time when we see the cost of fuel rising which has resulted in an increase in our power bills, the senator has introduced Bill 52 to provide relief.
The legislation proposes to repeal a 1986 public law dubbed the pilot law or payment in lieu of taxes. "The autonomous agencies such as the Guam Power Authority, the two ports - airport and commercial port - utilizes the various infrastructure that the government has and because they do not pay taxes the way private businesses do they wanted to assess the agencies," Ada explained.
The pilot charge requires each autonomous agency to pay $875,000 a year, but according to Senator Ada, it wasn't until March 2011 that an invoice was sent to GPA. "Trying to collect back to 14 years of assessment, totaling about $12 million; of course, the Consolidated Commission on Utilities objected to this," he added.
Senator Ada adds the CCU stated there is a statute of limitations on how far back they can be billed. Nonetheless, GPA is still stuck with a $2.5 million bill - one they have no choice but to pass onto its rate payers. CCU chairman Simon Sanchez is in support of the measure, telling KUAM News, "GPA has petition the PUC for a rate to pay the $2.5 million. The governor has invoiced for and to pay the $800,000 going forward.
"We have not spent any money on this yet, but the PUC is reviewing this proposal and Senator Ada's bill would eliminate the need for the PUC to create rate if he just gets rid of the tax completely."
Sanchez adds that GPA has started the process to increase the surcharge to pay the pilot, but if Senator Ada's bill is passed, then ratepayers will be given some relief not only from old power bills but future bills as well. Senator Ada introduced similar legislation in the 31st Guam Legislature, however, according to his staff the measure, Bill 489, never had a public hearing.