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.