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Guam - The Consolidated Commission on Utilities is meeting this evening to decide whether to approve a $705,000 replacement line contract for Guam Waterworks as well as extend the fuel oil contract for the Guam Power Authority.


General manager of consolidated utilities services John Benavente said, "The general manager for each authority has the spending authority of $250,000 so anytime that a contract is over $250,000 we have to bring it before the CCU for approval so we have a $705,000 contract that is read for award and subject to CCU approval."


Once approved a notice of intent to award will be issued and within the next month the contractor will begin the replacement of 2,000 feet of water lines in areas of Santa Rita and Agat that are frequently leaking as well as look at other areas that need replacement as a preventative measure. Also on the agenda is a negotiated agreement between GPA and the fuel oil supplier Hyundai Corporation. The contract is a two-year contract with the option to extend for up to three additional years. GPA has been in negotiations to reduce the premium fee for each of the next three years. Benavente says if a one year extension is agreed upon GPA will save $10 million, two years will save $26 million and a three-year extension will save a total of $46 million. This translates to savings for customers in the August LEAC adjustment.