Guam – The Guam Waterworks Authority have announced that the agency will increase the water rates.
Consolidate Commission on Utilities Chair Simon Sanchez says, last year the Public Utilities Commission approved a 4 year rate plan to gradually increase water rates by 35%, spread out over the next four years. He says During last night the PUC approved the second year for this increase for the fiscal year of 2011. This increase will take place on October 1st.
Sanchez says, “It’s an 8% increase on your water bill, for a typical residential customer, the impact will be about $3.00 a month. This money will be used to pay for the debt service and about $300 million dollars that we expect to be borrowing in the next 3 – 4 years. Beginning with about $150 million dollars that we will borrow this year. This money will be used to rebuild the system, fix the leaks and do all we need to do to continue improve the system.”
The second thing discussed during last nights meeting was the surcharge that is on everyone’s water bill.
Sanchez says, “The surcharge is to pay off the unpaid power and water bills left over from the Carl Gutierrez administration when they were running GWA. Rate payers have been paying this for the past 8 years. We’ve almost paid off these obligations that were left over. The good news is that the surcharge will go down from 9.6% to about 8%, effective October 1st.”
These new rates will be effective as of October 1st. The rate payers will notice that their water bill will go up slightly and their surcharge portion of the bill will go down a little.