Ratepayers May Expect an Increase to Fuel Surcharge

Guam Power Authority (PNC file photo)

In utility-related news, Guam Power Authority is behind 41 million dollars in oil used to power the island during the pandemic timeframe.

PNC’s Damen Michael has the story.

In the last few months, Guam Power Authority ratepayers have been spared higher fuel charges due to Prugraman Ayuda Para i taotao-ta saving approximately $500 over the time span from July to November.

In a meeting for the Consolidated Commission on Utilities, GPA General Manager John Benavente said that the power price needs to increase again at the beginning of November due to continued high fuel costs.

In an interview on Newstalk K57 with Patti Arroyo, Simon Sanchez, a member of the CCU, said that the PUC has a tough decision to make on the request of GPA to make a higher rate adjustment for ratepayers.

Sanchez said, “We’re still 41 million dollars behind in charging ratepayers what it costs to buy all the oil which is necessary to provide them the energy, and as we discuss yesterday, we didn’t raise the rate during covid thinking we were doing a good thing, and it probably was a good thing at the time, but unfortunately at some point, we need to catch up and catching up when things are still challenging isn’t any fun.”

According to a LEAC forecast created by GPA, if the LEAC rate was raised to approximately .342 from its current rate of .296, the average residential ratepayer will see an increase to their monthly bill by $46.30.

This higher surcharge could see a reduction in the fuel shortfall to approximately 26 million dollars at the beginning of next year, says Benavente.
Reporting for the Pacific News Centre

PUC will consider the request for the third increase in the fuel surcharge during their October meeting next week.

Reporting for the Pacific News Centre

I’m Damen Michael

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