Senator Tony Ada Intros Bill To Exempt Utilities From Paying Relocation Costs For Road Projects

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Guam Senator Tony Ada wants to ensure federally funded road projects don’t lead to 10% to 30% increases in Guam’s utility rates.

That’s why Ada introduced Bill 28-31, which eliminates the provision in Guam law that requires utilities to pay for the relocation cost of its infrastructure for road construction projects. Ada also notes a portion of federal funds are reserved to relocate utilities, but local law prevents Guam from using those funds to relocate such infrastructure as roads are improved.

“So, we want to remove that portion of the law so that any road expansion or any other road projects that we have that is federally funded…. that the federal grant will pay that and they’ll go back to paying the cost of relocation of the utilities” said Ada.

Reacting to Ada’s bill, Consolidated Utility Service General Manager John Benavente says they are in favor of the legislation. “Whenever the costs can be born rightfully by the federal government for the purposes of right away that they are requiring, we should take advantage of every opportunity” said Benavente.