In a move that could bring significant financial relief to residents, the Guam Power Authority has proposed a 20.3% decrease in its fuel recovery charge, also known as the Levelized Energy Adjustment Clause (LEAC).

During Wednesday's Consolidated Commission on Utilities meeting, GPA announced plans to lower the LEAC rate from $0.26 to $0.20 per kilowatt-hour starting February 1, 2025. For the average household using 1,000 kilowatt-hours a month, this would mean a 14.8% cut in their electric bill — saving approximately $53.19 per month.

The reduction is possible due to improved fuel price projections and efforts to stabilize GPA's finances, with its under-recovery balance expected to drop to $4.3 million.

General manager John Benavente acknowledged the strain of volatile fuel costs and emphasized the agency's commitment to delivering reliable power at the lowest cost.

CCU member Simon Sancez calls this good news that's been promised, saying, "It's been a crazy time. It's easy to forget that when COVID hit in March of 2020 we didn't raise the LEAC. We took our rainy day fund and fronted $47 million in fuel cost and kept the LEAC low until we finally got over the COVID pandemic and we had to recover that money. That was very painful couple of years for all of us. But we said as long as oil prices remain stable then we we have an opportunity to finally drop the LEAC and it look like we will. Now you are recommending by next Tuesday we approve about a 20 percent reduction in the LEAC, about a 15 percent reduction in the total bill and that is going to be welcome relief for all of our rate payers starting February 1st, so good job."

Benavente also added,  "It should help because the consumption is starting to come down now in December, January, February and March - the cooler months, plus this."

The proposal heads to the Public Utilities Commission next week for final approval.