VIDEO: GPA’s Proposed 4.8% Rate Hike Revised Down to 1.8%

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Guam – The Guam Power Authority has agreed to revise its requested Base Rate increase down to just 1.8%  from a previously requested 4.8%,  in the first year.

Instead of the higher rate, CCU Chairman Simon Sanchez says that the power utility has agreed to reduce expenses by up to $4 million dollars.

GPA had been seeking a Base Rate hike of  between 7% and 8%  spread out over 5 years which would have been a $12 to $13 dollar increase in the average residential customers power bill for customers using 1,000 kilowatts a month.

But following negotiations with Georgetown consultants and the Department of Defense, Sanchez says that the proposed rate hike will add just $3 to $4 dollars to the average residential bill.

The 1.8%  base rate rate hike would remain in effect through September of 2013. After that date, the needed for any additional base rate increase would be re-examined.

The agreement on a revised base rate hike request comes ahead of the first of  3 public hearings on the rate hike tonight before the PUC.

Tonight’s public hearing begins at 6 at the in Suite 202 of the GCIC Building in Hagatna.