The Guam Public Utilities Commission approved the Guam Power Authority’s petition to lower the Fuel Recovery charge, known as the Levelized Energy Adjustment Clause, which GPA stated would lower customer’s monthly power bill by approximately $53.19.
The change takes effect Feb. 1 and will remain until July 31.
The GPA petition lowered the LEAC rate by 20.3%, a decrease from about 26 cents to about 20 cents per kilowatt-hour following falling rates for global fuel.
In the PUC’s administrative law judge report, it highlighted that “there is a good possibility” that prices will continue to decrease. With the Trump administration’s policies to encourage domestic fuel production, prices could decrease further.
GPA’s Ukudu Power Plant is set for commissioning by September this year. GPA’s general manager, John M. Benavente said that the addition of the plant will help lower costs for ratepayers.
“With the new Ukudu Power Plant coming online later this year, we look forward to even greater efficiency, overall energy savings and reduced power bills for Guam’s families,” he said in a Jan. 30 release.
GPA estimates that the Ukudu Plant will reduce fuel consumption by approximately 879,000 barrels annually and will deliver 198 MW of energy which would continue to drive LEAC rates lower. mbj