CCU discussing new consolidated headquarters

by Jolene Toves

Guam - A new home for the Guam Power Authority, energy efficient streetlights and a revised multibase rate are on the table for discussion at tonight's Consolidated Committee on Utilities meeting. From renter to homeowner that is the future for GPA, design plans for their new home in Barrigada are complete, scheduled to open in late 2014, designed by RIM Architects and recently awarded construction contract to CoreTech they are ready to build, chairman of the CCU Simon Sanchez however says the board will still need to give approval to a request for funding for additional costs.

"GPA management is asking for a small increase of $400,000 to pay RIM Architects for additional construction management and design services that are needed to complete the building," he said.

Increasing service cost from $2.8 million to $3.2 million. The new building will be LEED certified, and energy efficient it will house the administrative offices of GPA, GWA and the CCU. Being more energy efficient is not only the goal for GPA's new building but also for our islands streetlights over the last year GPA has piloted energy efficient streetlights in Tumon and along Marine Drive which are 50 percent more energy efficient.

He said, "We want to convert all 15,000-16,000 Guam street lights to these more energy efficient streetlights. We can get our money back in about five years we spend about $4 million to $5 million a year right now the public does."

Sanchez says since GovGuam does not have the financial ability to purchase the 15,000 to 16,000 lights, making the switch is complicated and will require the formation of a special purpose entity. "We would create this SPE and probably managed by GPA and the CCU would remain on the board but the idea of this SPE is it would allow GPA to do some energy efficient things outside of its main function."

A tax structure and a borrowing structure vetted out with the bond counsels and GEDA. The SPE will not only allow for street lights but also to help the Department of Education conserve energy. "By helping the flow of financing that might be available in the private sector to the Government of Guam through the school system like the school system in which the school system enters into an agreement with SPE."

Meanwhile more good news from the CCU, as residents can find relief that at least for now GPA rates will not be increasing. "GPA management was concerned about the last base rate that we reduced the request was higher than what we approved they thought that they would seek another adjustment it turns out now they are not going to seek another adjustment," he said.

Sanchez says the CCU was very concerned in approving the last base rate increase because rate payers are really tapped out. A working session was held this afternoon looking at the design of GPA's rate structure. Sanchez says this will not increase the rate but instead identifies that some rate payers are subsidizing other rate payers ultimately hoping to move toward balance.