Vice Speaker Questions Military’s Commitment to “One Guam, One Utility”

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Guam – Vice Speaker B.J. Cruz is expressing concern about several passages in the Final EIS related to Special Purpose Entities that “may not be applicable to ‘One Guam, One Utility.'”

 

The letter was prompted by CCU Chairman Simon Sanchez’s presentation to Senator Tom Ada’s Utilities Committee last night [Tuesday] during which Sanchez spoke about  the “One Guam, One Utility” understanding that CCU has with the military about the buildup.  Both the military and GovGuam have agreed to pursue a one utility solution for the buildup and that the military will not seek to construct separate utility services.

However in a letter to Sanchez today, Vice Speaker Cruz  cited a passage of the FEIS that calls into question the “One Guam, One Utility” understanding.

The passage in the FEIS is: “It is anticipated that some utilities solutions would be implemented by Special Purpose Entities (SPEs), which would likely be private business entities formed to finance, operate, manage, upgrade, or develop utility plants and associated infrastructure such as collection or distribution systems. The U.S. Government would then likely purchase utilities from the SPE or Guam utility under a utilities service contract. Fees generated through utilities service contracts could be used by the SPE or Guam utility to repay financing costs or a portion thereof.”

Read Cruz’s letter to the CCU

 

In a release, Senator Cruz states; “Based on the FEIS quote in the letter, the Vice Speaker questioned whether ratepayers must repay the creation of SPEs and whether ratepayers must repay the refurbishment of GWA and GPA. Cruz also inquired if it is possible for Japanese companies to finance SPEs on Guam thereby completely phasing out GPA and GWA.”

The Vice Speaker states that he “remains hopeful that the CCU will secure military contracts for utilities and infrastructure upgrades to become the sole proprietor of U.S. Government contracts.”