Guam Power Authority gets the nod to petition for power rate adjustments

By Pacific Island Times News Staff

The Consolidated Commission on Utilities on Tuesday greenlighted the Guam Power Authority’s plan to petition the Guam Public Utilities

Commission for a base rate adjustment to cover payments and fixed costs associated with the Ukudu Power Plant and ongoing infrastructure investments.

GPA proposes to raise the base rate by 3 cents for the average residential customer using 1,000 kWh per month.

The base rate increase, if approved, would be followed by another petition for a reduction in fuel recovery charge, also known as “levelized energy adjustment clause,” or LEAC, to be filed in May.

GPA seeks to lower LEAC to 13-14 cents per kWh, reflecting reduced fuel consumption driven by the integration of Ukudu and the planned retirement of aging generators including Cabras 1 and 2 baseload generator units. The combined factors are expected to reduce annual fuel consumption by over 900,000 barrels.

Cabras power plant

“These adjustments are designed to work together to lower power bills for all GPA customers. If approved by the PUC, the base rate adjustment would 

take effect on Sept. 1, 2025, and GPA anticipates a LEAC reduction to be

 implemented at the same time, pending approval later this year.

GPA said the rate adjustments if approved would result in a net reduction of approximately $42 per month on the average residential customer’s power bill, in addition to the $53 monthly reduction that took effect on Feb. 1.

Combined, these reductions represent an estimated total monthly savings of $95 compared to power costs prior to recent adjustments, GPA said.

Guam Ukudu Power fired the first of three Ukudu combustion turbine units during a test on Feb. 12,

Initial testing included emergency stop, protection relay and overspeed trip tests at full speed.

During the test, GPA received the first energy production from Ukudu CT Unit 1 synchronized into GPA’s power grid with a load of about 5 megawatts.

Ukudu units 2 & 3 will undergo similar testing at the end of February and through the end of March.

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