Navy's proposed water rate increase up for discussion
The CCU is meeting to discuss a proposed water rate increase by the Navy that could mean a hit to your pocketbook.
November 24, 2014Updated: November 25, 2014
By KUAM News
By KUAM News by Jolene Toves
Guam - This evening the Consolidated Commission on Utilities is meeting to discuss an array of items but the biggest issue is a proposed water rate increase by the Navy that could mean a hit to your pocketbook.
In the last ten years the Guam Waterworks Authority has increased the cost of water by about 90%, yet in an eight year period the Navy is increasing their rate by about 360%. GWA purchases water from the Navy to supply water to Agat and Santa Rita but CCU chairman Simon Sanchez says this summer they received confirmation that the Navy wants to increase its water rate to GWA by 40% making the cost per 1,000 gallons $7.59.
"The 40% increase is on top of a 260% increase that has been going on for the last seven years in 2007 the Navy only charged $2.09 per 1,000 gallons today they want to charge $7.59 per 1,000 gallons this is like a 363% more than tripling of the rate they charge GWA to make water," he said.
In 2007 the Navy proposed a 97% increase all at once similar to proposing the 40% increase today also all at once but according to Sanchez when the 97% increase was proposed he wrote to then-governor Felix Camacho, Congresswoman Madeleine Bordallo and to the Department of Defense. "Then-acting secretary one of the under secretaries of defense B.J. Penn responded to us and they agreed that this was far too high an increase to impose at once and so what they did instead of doing it the 97% increase in one year they spread it out over four years and then after that they continued to raise rates another thirty percent between 2011 and 2014 and now they want another 40% on top of that effective 2015."
If the rate increase goes through as proposed this means that GWA ratepayers may be forced to pay an additional 2-3% more just to afford the forty percent increased by the Navy. "It's bad enough that the Navy has more than doubled its price in the last seven years but to ask for another 40% on top of that all at once is just acting in bad faith in our view," he added.
According to Sanchez GWA has reduced the amount of Navy water consumed by 65% because the cost is high. And because the water produced by the Navy is far more expensive than GWA, Sanchez says the navy appears to be having challenges controlling its cost of water, stating it may be time to reopen conversation on a merger.
"If the navy system is this expensive perhaps we can save money for our rate payers as well as the Navy by reopening discussion with Navy to merge the systems," he added.
He adds that the CCU would like to work with the Navy to get to the bottom of why their cost of water is high and is hopeful that at their CCU meeting they approve the letter to the admiral to revisit the rate increase as well as ask Governor Eddie Calvo and Congresswoman Bordallo to join in on their request.
Guam - This evening the Consolidated Commission on Utilities is meeting to discuss an array of items but the biggest issue is a proposed water rate increase by the Navy that could mean a hit to your pocketbook.
In the last ten years the Guam Waterworks Authority has increased the cost of water by about 90%, yet in an eight year period the Navy is increasing their rate by about 360%. GWA purchases water from the Navy to supply water to Agat and Santa Rita but CCU chairman Simon Sanchez says this summer they received confirmation that the Navy wants to increase its water rate to GWA by 40% making the cost per 1,000 gallons $7.59.
"The 40% increase is on top of a 260% increase that has been going on for the last seven years in 2007 the Navy only charged $2.09 per 1,000 gallons today they want to charge $7.59 per 1,000 gallons this is like a 363% more than tripling of the rate they charge GWA to make water," he said.
In 2007 the Navy proposed a 97% increase all at once similar to proposing the 40% increase today also all at once but according to Sanchez when the 97% increase was proposed he wrote to then-governor Felix Camacho, Congresswoman Madeleine Bordallo and to the Department of Defense. "Then-acting secretary one of the under secretaries of defense B.J. Penn responded to us and they agreed that this was far too high an increase to impose at once and so what they did instead of doing it the 97% increase in one year they spread it out over four years and then after that they continued to raise rates another thirty percent between 2011 and 2014 and now they want another 40% on top of that effective 2015."
If the rate increase goes through as proposed this means that GWA ratepayers may be forced to pay an additional 2-3% more just to afford the forty percent increased by the Navy. "It's bad enough that the Navy has more than doubled its price in the last seven years but to ask for another 40% on top of that all at once is just acting in bad faith in our view," he added.
According to Sanchez GWA has reduced the amount of Navy water consumed by 65% because the cost is high. And because the water produced by the Navy is far more expensive than GWA, Sanchez says the navy appears to be having challenges controlling its cost of water, stating it may be time to reopen conversation on a merger.
"If the navy system is this expensive perhaps we can save money for our rate payers as well as the Navy by reopening discussion with Navy to merge the systems," he added.
He adds that the CCU would like to work with the Navy to get to the bottom of why their cost of water is high and is hopeful that at their CCU meeting they approve the letter to the admiral to revisit the rate increase as well as ask Governor Eddie Calvo and Congresswoman Bordallo to join in on their request.