Navy Raises Water Rate

Navy raises water rate
Sunday, 07 June 2009
Marianas Variety News Staff

(Navy) – The Naval Facilities Engineering Command Marianas has notified the Consolidated Commission on Utilities that the Navy will charge $4.06 per 1,000 gallons of water supplied to the Guam Waterworks and Power Authorities beginning Oct. 1.

This rate is consistent with the Navy’s promise toward graduated rate adjustments designed to minimize financial impact to GWA and GPA, and to bring the previously reduced water rate in line with the rate charged to Navy and other Department of Defense customers, according to a press release from the Navy.

The fiscal year 2009 rate of $3.80 for GWA and GPA was less than the rate paid by Navy and other DoD customers.

According to the Navy, the adjustment is based on the current cost of operations and maintenance to continue to produce reliable and safe drinking water to the Naval Base and other customers in the southern villages of Agat, Santa Rita, Piti, Nimitz Hill, parts of Asan and Maina, and the Apra Harbor area.

“The Navy operates, maintains and repairs its water production and distribution system through the Navy Working Capital Fund (NWCF) and not direct appropriated funds,” said Capt. Paul Fuligni, NAVFAC Marianas commanding officer. “As such, our rates are developed to cover the operation and maintenance of our water system,” he added.

In a letter to CCU chairman Simon Sanchez, Fuligini said the Navy’s current projection is for a water rate of approximately $4.12 per 1,000 gallons. “However,” he added, “this rate is subject to further review and adjustment.”