Power rates will go up again soon. Last night(Thurs.) the Consolidated Commission on Utilities approved the Guam Power Authority’s petition to “phase in an adjustment to the current levelized energy adjustment clause” or LEAC.
The LEAC is GPA’s fuel recovery surcharge which is an amount that can be seen on your monthly power bill statement. On February 1st of 2018 residents can expect a 15.6% increase to their overall power bill. According to GPA Chief Financial Officer John Kim this translates to roughly $33 dollars a month for the average resident who consumes 1000 kilowatt hours of power. According to a release from GPA this latest LEAC adjustment is due to a recent decision by the oil producing and exporting countries or OPEC to support the extension of production cuts until the end of 2018. These cuts in production will result in fuel oil market prices being around the $50 to $60 per barrel range. Kim is quoted as saying “GPA continues to explore and evaluate opportunities to reduce operating costs; with the recent completion of the overhaul of Cabras unit no. 1, GPA can fully dispatch the more efficient baseload units to meet customer demand and reduce reliance on the peaking units.”