The price tag for water purchased by the Guam Waterworks Authority from the U.S. navy at fena Lake is a hefty one. With the increased rates being charged by the military announced during today’s Commission on Consolidated Utilities GWA work session.

"Over the last couple of quarters, the rates that we are being charged by the Navy have somewhat close to doubled… more than doubled,” said GWA General Manager Miguel Bordallo.

GWA previously budgeted $6 million to cover the cost of Navy water purchases but with the Navy’s recent price-hike, it's now estimating a need for $15.6 million before the year is out.

The Waterworks Authority mapped out a plan to mitigate this increase, seeking an amendment to its approved budget to cover expenses up through the end of Fiscal Year 2024.

Still, it’s an issue that’s not all water under the bridge for CCU Commissioner Simon Sanchez, as how much rate-payers would need to shoulder the cost of the increase remains unknown over time.

“In the first year, it looks like you’ve mitigated it. But you can't do this every year. This is going to be an out-of-pocket cost to rate-payers over time. We have no idea how a small system like that can justify a 160% rate increase in 5 years and 120% in ¾ months,” said Sanchez. "What’s it going to take in terms of capital expenditures to get off of Navy water? Or are we forced into this kind of hostage negotiations over water?”

Bordolla advised Sanchez that there are no negotiations as the Navy raises its price, and they are stuck paying for it. though he says reducing reliance on Navy water is an option.

While projects are in the pipeline to do just that, CCU members also throwing in other ways forward.

CCU Vice-Chair Francis Santos said, “We contact our congressman and inform him of what's going on and see if he can add language to be contained within the NDAA that moving forward, any—any rate increase from the military has to be paid for by the military in their budget.”

Other suggestions for operational control of Fena Lake and the Fena Treatment Plant were also raised, alongside increasing GWA’s charge for wastewater services to the Navy to match their rate adjustment.