Sunday, August 19, 2007

Navy May Increase Price of Water

Navy may increase water rate to GWA
by Clynt Ridgell, KUAM News
Wednesday, August 15, 2007

It's quite possible the Navy could up the rate it's charging the Guam Waterworks Authority water from Fena. Currently GWA buys about $3 million a year of water from the Navy to supply southern residents with H2O, about $2 per every thousand gallons. According to Consolidated Commission on Utilities chairperson Simon Sanchez, he's heard the Navy plans to bump that up to $4.

Sanchez maintains the answer is to integrate the systems, telling KUAM News, "One of there concerns is that they don't have the economies of scale, which forces their costs to be higher. We offer to them GWA has economies of scale we run a bigger system we service more ratepayers and maybe it's time to do what we've done with the airport and with the Guam Power Authority is to begin to merge these systems because it's clearly too expensive when you have separate systems, especially if the Navy's charging as much as they are."

No comments: