The Public Utilities Commission last night voted unanimously to retain the current fuel surcharge of the Guam Power Authority.
The PUC pegged the Levelized Energy Adjustment Clause (LEAC) at $0.086800 per kWh.
This is the same rate for the fuel charge that has been in effect since June 1.
Over the last six months, the PUC reduced the LEAC from $0.15 per kWh to $0.086800 per kWh, a reduction of nearly 50%.
According to Fred Horecky, PUC Chief Administrative Law Judge, the commissioners decided that, because of the difficult economic conditions resulting from the COVID pandemic, there should be no increase in LEAC at the present time.
“An increase would be too burdensome for ratepayers. I had recommended, based upon GPA’s proposal, that the LEAC Factor be raised to $0.10 per kWh so that GPA could recover at least 50% of its fuel cost. However, the Commission felt that any under-recovery of fuel costs by GPA could be recovered more gradually in subsequent LEAC periods,” Horecky said.
He added that the PUC decision is fully within the discretion of the commissioners and recognizes the difficult economic conditions that presently exist. The matter will be reviewed again by the PUC in October.