by Jolene Toves

Guam - The Guam Power Authority is one step closer to securing a new fuel services contract. It's good news for our island ratepayers as yesterday's recommendation for the GPA fuel bid carries the promise to save dollars. Consolidated Commission on Utilities chairman Simon Sanchez said, "The bottom line is the winning bid is going to allow us to pass on more savings to ratepayers. If you recall we asked the PUC to lower LEAC August 1 by about 6.5% on the total bill."

Proving to be the best bidder Hyundai Corporation was selected on the basis of price, fuel specifications and financial qualifications. It is anticipated the final contract will be signed in early August after final PUC approval. And in turn will offer additional projected savings. "With this lower cost contract we think it can now be lowered by 9 % if the PUC awards it agrees with and awards the contract if there is no protest all but all the analysis that we've done the savings from this contract rebid are significant we can pass it on to ratepayers," said Sanchez.

If all goes smoothly and there are no protests ratepayers may see a savings in their power bill as early as the August 1 LEAC adjustment and will be available to ratepayers for the next two years. "There's a couple of unique things in GPA's fuel blend and this bidder Hyundai was able to offer us a really good price on this blended fuel much lower than Petrobas, our existing supplier, and Vital, the winner of the earlier bid," he said. "We weren't surprised because the earlier bid the company, Gershing, which was the third bidder at the time, they were backed by Hyundai but in this Hyundai decided to bid directly no middleman."

With about a $10 million savings to ratepayers, the residual fuel oil supply contract has an estimated contract worth of $360 million. The contract is for two years with three optional one-year extensions. According to Sanchez, the contract now sits with the PUC awaiting final approval.