GWA bond float jeopardized by rate delay

GWA general manager Miguel Bordallo (PNC file photo)

The Guam Waterworks Authority’s planned bond float by the end of this fiscal year is now in jeopardy.

In an interview with the Patti Arroyo show on NewsTalk K57, GWA general manager Miguel Bordallo said the delay in the Public Utilities Commission’s action on GWA’s rate petition could adversely affect the utility’s plan to raise funds in the market.

Bordallo said these funds are needed to comply with debt payments and certain court-stipulated requirements as well as to enhance GWA’s overall system.

According to Bordallo, the PUC advised GWA that the commission won’t have any rate recommendation until February if there are no intervenors.

If GWA is unable to get the rate decision, it won’t be able to push through with its bond float, Bordallo said.

He attributed the delay to possibly PUC’s conservative approach and the fact that the commission had a change of consultants.

Because of this, Bordallo said the approval process has grown longer than the usual 60 to 90-day period.