The US Navy has lowered its water price hike to the Guam Waterworks Authority by more than 50%.  

GWA Assistant General Manager Chris Budasi confirmed the recent reduction in the military’s water rate from $24.07 per kilo-gallon down to $10.98 per kilo-gallon. 

“We also received a credit amount of $5.5 million. However, we’re still waiting for the reconciliation data to confirm the figures associated with that credit,” said Budasi. 

Budasi went before the Consolidated Commission on Utilities during a work session for a resolution to approve GWA’s Fiscal Year 2025 operations and maintenance budget. 

“The budget before you is based on the PUC’s approval of a 11.5 percent rate increase for all water and wastewater customers this year. We expect to generate about $138 million in revenue based on the increase. On the expense side, we are projecting about $97.6 million in operating costs,” added Budasi. 

As KUAM reported, the Navy more than doubled its rates back in August. GWA bought the Fena Lake water for its operations. 

It had the CCU concerned it would leave customers shouldering the cost, on top of GWA’s 11.5% water rate increase that took effect earlier this month.  

Though this issue was resolved, the already approved first-year rate increase is not likely to be lowered for ratepayers. 

Budasi said GWA management wants any surplus revenues from the reduction in the navy water rates to be allocated to the rate stabilization fund, which currently has about $950,000.