GPA Insurance Premium Goes from $4.8 million to 6.4 million

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The renewal was discussed at an October 27 meeting.

Guam – Entering the last year of it’s contract with its insurer, Lloyds of London, GPA will now see an increase of 33% in its premium. CCU Commissioner Simon Sanchez says that the reason the premium has gone up is because GPA has filed a claim with the company. Sanchez says that Lloyds of London has told GPA that they have set aside about $140-million for the replacement of Cabras 4. The renewal would also exclude Lloyds of London from covering GPA for any loss or damage resulting from the inspections, commissioning and testing of reactivated units such as Dededo CT units 1 & 2. Also, when the root of the problem for the explosion of Cabras 3 & 4 is determined, if a similar problem exists in Cabras 1 & 2, the problem must be fixed before any coverage is granted to GPA.

 

 

“They’re going to charge us more because they know you have a claim. But they’ve also told us that they’ve set aside about $140-million for Cabras 4 and then we are insured. We’ll be insured for this final year, well pay a little more,” said Sanchez.

 

Meanwhile, Guam Power Authority spokesperson Art Perez says that the unit that went down last night, MEC 9, is operating at full capacity and he says there will be no load shedding schedules for now.