Should Guam Build More Power Plants? GPA Reveals Future Plans

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GPA’s plan, which can still be amended by the CCU, says if GPA builds new plants, they would use insurance money from Cabras 3 and 4 to help build the plants–insurance money that is yet to be dished out.

 

Guam – Do you want GPA to build new Power plants or would your prefer a move towards more renewable energy? GPA has laid out its plan on how they intend to keep the lights on in the future.

 

GPA’s plan, which can still be amended by the CCU, says if GPA builds new plants, they would use insurance money from Cabras 3 and 4 to help build the plants–insurance money that is yet to be dished out.

 

“My personal opinion: I think we are making the more prudent, less risky decision to go to the combined cycles, to allow this migration of technologies so we can better learn it,” says CCU Commissioner Simon Sanchez.

 

Part of the plan is to retire Cabras 1 and 2 by 2020 and convert MEC 8 and 9 to diesel or natural gas by the same time period. GPA also plans to issue new bonds, or borrow more money, to help fund the procurement and construction of the 3-5 new power plants.

 

This chart illustrates a “high end estimate” of how much of an impact building new power plants would have on the ratepayer.

 

In 2024,ratepayers could potentially see a 1.8 percent increase on their bills thanks to the new power plants. That number would drop to 1.7 percent but surge to a 4.6 percent increase in 2026, based on GPA estimates.

 

Conversely, GPA maintains that renewable energy is still too expensive to be the primary source of generation.

 

“We have some people in the community, that really believe you can go 100 percent renewables faster and you have to show them the cost and the reliability to show them that we can go to renewables as fast as you want are you ready to spend the money for $300, $400 million just for 50 megs for 6 hours,” said Sanchez.

 

But GPA failed to address PUC consultants, the Lummus group’s, concerns about building new power plants. Lummus said that GPA did not provide sufficient planning for the potential impacts of a natural gas infrastructure costs on Guam. Additionally the PUC agreed with Lummus at the time to disallow the use of natural gas on Guam. 

 

 

Click below to view GPA’s Draft IRP.


CCU_IRP_May_17_2016_Worksession_5-17-16_DRAFT.pptx