CCU votes to maintain current power fuel surcharge in spite of rising oil prices

GPA meter (PNC file photo)

At its regular monthly meeting on Tuesday night, CCU Commissioners approved Guam
Power Authority’s (GPA) recommendation to maintain the Levelized Energy Adjustment Clause (LEAC) rate of $0.171458/kWh on GPA’s Customers’ monthly energy statement for the period February 1, 2022, to July 31, 2022.

“CCU Resolution FY2022-05, was voted upon and approved today, to support GPA’s request to take action and maintain the current LEAC rate in spite of the oil prices rising to assist our ratepayers during these difficult times,” stated CCU Chairman Joey T. Duenas.

GPA will next petition the Guam Public Utilities Commission (GPUC) by December 15, 2021, to request to maintain the LEAC for the period February 1, 2022 to July 31, 2022. GPA hopes fuel prices would drop substantially by January 2022 when the PUC is expected to finalize the LEAC.

“The 60,000 KW solar PV farm in Sasayan is to be operational by April next year and will save the ratepayers about $4.5 million through the next LEAC period thereby reducing under-recovery,” said GPA General Manager John M. Benavente, P.E.

“Presently, GPA’s fuel under-recovery is projected to be roughly $17.5 million and was as much as $30 million in previous periods. GPA must manage its finances and maintain enough funds to always purchase fuel oil crucial for its operations to deliver reliable power for Guam,” concluded Benavente.