CCU proposes $210M loan
GPA plan includes upgrading facilities, equipment
By Dionesis Tamondong • Pacific Daily News
April 22, 2010
Power generation and distribution projects, a central office for Guam's power and water agencies, and investments into digital technology are among the things for which the Guam Power Authority plans to borrow about $210 million.
The Consolidated Commission on Utilities on Tuesday approved the power agency's plan to borrow up to $210 million for various improvement projects and refinancing efforts.
The bond financing needs the approval of the Legislature and the Public Utilities Commission. The loan would be paid back with future revenues collected from ratepayers.
The agency also has plans for another series of rate increases starting April 2011, according to a resolution the utilities commission passed Tuesday night.
CCU Chairman Simon Sanchez said a bulk of the borrowed money would go toward upgrading the agency's transmission and distribution facilities and equipment. If those facilities are able to run more efficiently, it will help lower the agency's operating costs, and in turn, delay or reduce future rate increases, Sanchez said.
The agency plans to invest in a $33.2 million Smart Grid Project, which has been estimated to produce up to $5 million per year in fuel savings, according to the CCU resolution. The agency received a $16 million federal grant for the digital technology project, but it must come up with the rest of the money.
A shared, central facility is also planned for the two utility agencies, which would called the Fadian Administration and Operations Center.
The building would help reduce costs for leasing and renovating existing facilities while streamlining operations for the two agencies, the resolution stated.
Showing posts with label GPA. Show all posts
Showing posts with label GPA. Show all posts
Thursday, April 22, 2010
Wednesday, February 03, 2010
Consumers brace for higher bills, price hike
Consumers brace for higher bills, price hike
Monday, 01 February 2010 03:34
by Tiffany Sukola | Variety News Staff
STARTING next month, ratepayers will see their monthly bill increase by nearly 12 percent as Guam Power Authority will raise the fuel recovery charge from 12.96 cents to 15 cents per kilowatt hour.
The Public Utilities Commission last week approved GPA’s petition to increase the fuel recovery charge, also known as levelized energy adjustment clause.
This fee helps pay for the fuel used to run GPA’s generators.
According to the figures given at the meeting, residential customers who use an average 1,500 kilowatt hours per month can expect to pay about $30 more.
Although GPA had requested the fuel recovery charge be increased to 14.21 cents per kilowatt hour, the commission decided to increase that charge to 15 cents per kilowatt hour based on a study done by the power company’s consultants, Georgetown Consulting Group.
The commission also gave the Guam Waterworks Authority the green light to begin implementing a system development charge for first time users hooking up to the company’s water and sewer lines.
GWA officials have said that the fee, effective March 1, is necessary in order to recover costs associated with expanding, repairing and upgrading the current system in order to handle an influx of new users.
Water connection fee
The waterworks company’s proposed price tag for the new development charges start at $3,280 for a 5/8-inch water meter, the typical size for a residential waterline, according to GWA’s website. A 5/8-inch wastewater line would cost approximately $4,780 to connect.
Water and waste waterlines typically used by condominiums and other large commercial buildings could cost upwards of $700,000 to connect.
Since the PUC approved the development charges, the cost of building a brand new, average-size home will increase by nearly $5,000.
During the meeting, commissioners brought up concerns about the fees, saying the steep price might make owning a home nearly impossible for some island residents.
GWA officials said they will work on drafting a policy for a payment plan that would allow all residents, not just low-income residents, to pay the connection fee in installments.
Tariff hike
While utility bills are set to increase, consumers will also have to deal with increases in prices of goods that are shipped to Guam.
The Public Utilities Commission last Friday approved the Port Authority of Guam’s request to implement interim tariff increases to help recover operating costs and fund portions of the modernization plan.
The PUC approved the interim increases for cargo handling, fuel throughput and bunkering fees. They also conditionally approved a new $25 bill of Lading Fee. However, the request to bring the Agana Marina Fees up to the same level as the Agat Marina Fees was denied and the PUC recommended the work that the Port needs to accomplish in order to bring that request before the PUC again for consideration.
“This is a huge boost to our port modernization efforts and will help strengthen the finances of the port considering this will be the first increase in 17 years,” said port general manager Glenn A. Leon Guerrero. “These interim tariff increases are yet another milestone in our efforts to modernize and upgrade our island’s only commercial sea port. We are working aggressively to prepare our port for the future and to create a world-class facility that will service our island and our region for the years to come.”
Monday, 01 February 2010 03:34
by Tiffany Sukola | Variety News Staff
STARTING next month, ratepayers will see their monthly bill increase by nearly 12 percent as Guam Power Authority will raise the fuel recovery charge from 12.96 cents to 15 cents per kilowatt hour.
The Public Utilities Commission last week approved GPA’s petition to increase the fuel recovery charge, also known as levelized energy adjustment clause.
This fee helps pay for the fuel used to run GPA’s generators.
According to the figures given at the meeting, residential customers who use an average 1,500 kilowatt hours per month can expect to pay about $30 more.
Although GPA had requested the fuel recovery charge be increased to 14.21 cents per kilowatt hour, the commission decided to increase that charge to 15 cents per kilowatt hour based on a study done by the power company’s consultants, Georgetown Consulting Group.
The commission also gave the Guam Waterworks Authority the green light to begin implementing a system development charge for first time users hooking up to the company’s water and sewer lines.
GWA officials have said that the fee, effective March 1, is necessary in order to recover costs associated with expanding, repairing and upgrading the current system in order to handle an influx of new users.
Water connection fee
The waterworks company’s proposed price tag for the new development charges start at $3,280 for a 5/8-inch water meter, the typical size for a residential waterline, according to GWA’s website. A 5/8-inch wastewater line would cost approximately $4,780 to connect.
Water and waste waterlines typically used by condominiums and other large commercial buildings could cost upwards of $700,000 to connect.
Since the PUC approved the development charges, the cost of building a brand new, average-size home will increase by nearly $5,000.
During the meeting, commissioners brought up concerns about the fees, saying the steep price might make owning a home nearly impossible for some island residents.
GWA officials said they will work on drafting a policy for a payment plan that would allow all residents, not just low-income residents, to pay the connection fee in installments.
Tariff hike
While utility bills are set to increase, consumers will also have to deal with increases in prices of goods that are shipped to Guam.
The Public Utilities Commission last Friday approved the Port Authority of Guam’s request to implement interim tariff increases to help recover operating costs and fund portions of the modernization plan.
The PUC approved the interim increases for cargo handling, fuel throughput and bunkering fees. They also conditionally approved a new $25 bill of Lading Fee. However, the request to bring the Agana Marina Fees up to the same level as the Agat Marina Fees was denied and the PUC recommended the work that the Port needs to accomplish in order to bring that request before the PUC again for consideration.
“This is a huge boost to our port modernization efforts and will help strengthen the finances of the port considering this will be the first increase in 17 years,” said port general manager Glenn A. Leon Guerrero. “These interim tariff increases are yet another milestone in our efforts to modernize and upgrade our island’s only commercial sea port. We are working aggressively to prepare our port for the future and to create a world-class facility that will service our island and our region for the years to come.”
PNC :: Ada Says Feds Need to Pay for Infrastructure
PNC :: Ada Says Feds Need to Pay for Infrastructure
Friday, 29 January 2010
Guam - The Guam Economic Development Authority has issued a list outlining the major economic impacts to Guam as a result of the military buildup.
According to geda the potential economic impacts as outlined in the DEIS will exceed the economic benefits. GEDA does note however that these are potential impacts noted by the Department of Defense. One of the major impacts listed is the fact that Govguam can't afford to make the infrastructural upgrades needed for the military buildup.
Senator Tom Ada is the chairman of the committee on utilities. He says that after this weeks DEIS hearings the Consolidated Commission on Utilities made it clear that they will need money from the feds to make the necessary upgrades to the islands power water and wastewater systems. For example the Guam Power Authority will need at least 110 million dollars for it's upgrades while the Guam Waterworks Authority will need at least $50 million dollars. Senator Ada says that these upgrades are all achievable if the Federal Government provides the money needed to start on the projects.
Ada says that the CCU has worked with the Department of Defense to come up with solutions. Part of the solution is to identify the upgrades that are directly necessary as a result of the buildup and have the U.S. federal government pay for them. Ada says the bottom line is that the federal government will have to fund the improvements to infrastructure needed to support the buildup.
The senator also spoke about the indirect impacts to the island's utilities and how they are much harder to identify. In fact according to Ada DEIS fails to address the indirect impacts to the islands infrastructure.
The senator also wants to make it clear that the current bonds that GWA has secured are meant for upgrades that are needed without the buildup the agency still needs money to fund the upgrades necessary as a result of the buildup.
Friday, 29 January 2010
Guam - The Guam Economic Development Authority has issued a list outlining the major economic impacts to Guam as a result of the military buildup.
According to geda the potential economic impacts as outlined in the DEIS will exceed the economic benefits. GEDA does note however that these are potential impacts noted by the Department of Defense. One of the major impacts listed is the fact that Govguam can't afford to make the infrastructural upgrades needed for the military buildup.
Senator Tom Ada is the chairman of the committee on utilities. He says that after this weeks DEIS hearings the Consolidated Commission on Utilities made it clear that they will need money from the feds to make the necessary upgrades to the islands power water and wastewater systems. For example the Guam Power Authority will need at least 110 million dollars for it's upgrades while the Guam Waterworks Authority will need at least $50 million dollars. Senator Ada says that these upgrades are all achievable if the Federal Government provides the money needed to start on the projects.
Ada says that the CCU has worked with the Department of Defense to come up with solutions. Part of the solution is to identify the upgrades that are directly necessary as a result of the buildup and have the U.S. federal government pay for them. Ada says the bottom line is that the federal government will have to fund the improvements to infrastructure needed to support the buildup.
The senator also spoke about the indirect impacts to the island's utilities and how they are much harder to identify. In fact according to Ada DEIS fails to address the indirect impacts to the islands infrastructure.
The senator also wants to make it clear that the current bonds that GWA has secured are meant for upgrades that are needed without the buildup the agency still needs money to fund the upgrades necessary as a result of the buildup.
Utility upgrades: Who will foot the bill?
Utility upgrades: Who will foot the bill?
Friday, 29 January 2010 00:42
by Tiffany Sukola | Variety News Staff
PUBLIC utilities officials are ready to move forward with critical system upgrades in order to prepare the island’s infrastructure for the population spike associated with the military buildup; however, agencies are still unsure as to who will foot the bill.
“We know what needs to be done and now we just need to figure out where to get the money,” said Consolidated Commission of Utilities chairman Simon Sanchez during Wednesday’s hearing at the legislature on the draft environmental impact statement.
Officials from the Guam Power Authority and the Guam Waterworks Authority outlined the critical projects that must be completed before the thousands of marines and their families arrive on Guam.
Sanchez stressed the importance of moving forward with these projects because if the critical upgrades are not made before the realignment of the Marines and their dependents, then Guam’s utility and water systems face being overtaxed.
But although the military draft impact statement has identified where Guam’s power, water and wastewater companies should make repairs to their systems in order to handle an accelerated population growth, it doesn’t identify a funding source.
According to Sanchez, the utilities companies want the Department of Defense to absorb any direct or indirect upgrade costs because current users shouldn’t have to pay for the burden of upgrading systems because of new users.
Sanchez said that even though upgrades would have had to be made eventually, with or without the buildup, agencies have to deal with the pressure of upgrading its systems at an accelerated pace.
According to GPA general manager Kin Flores, an estimated $200 million in upgrades is needed in order to handle the increased demand on the island’s power systems.
Flores said that the impact statement recommended GPA recondition several power units, and refurbishes five of the island’s CTs, or current transformers, and make upgrades to the Orote plant.
He added that the study also identified long-term solutions to ensure the power authority will be able to sustain the island’s needs post-buildup.
GPA will determine whether it will pursue building a new plant, much like the one at Cabras, or build a plant at Potts Junction.
GWA faces similar problems, as the controversial document urges waterworks upgrades worth an estimated $300 million.
According to Julie Shae, of GWA, the company will have to make upgrades to waterlines near the marines’ housing units.
However, the environmental impact statement lists four different alternatives for where the marines might be housed.
She added that GWA will have to upgrade its systems in 2013, 2016 and again in 2021 to handle the demands of a bigger population.
GWA general manager John Benavente said the major flaw with the military plan is that they do not address funding for projects off base.
“DOD thinks that development fees will address the costs associated with the growth,” said Benavente. “But GWA does not agree.”
The two companies need to locate a combined $500 million in funding for the necessary projects before the buildup begins.
Friday, 29 January 2010 00:42
by Tiffany Sukola | Variety News Staff
PUBLIC utilities officials are ready to move forward with critical system upgrades in order to prepare the island’s infrastructure for the population spike associated with the military buildup; however, agencies are still unsure as to who will foot the bill.
“We know what needs to be done and now we just need to figure out where to get the money,” said Consolidated Commission of Utilities chairman Simon Sanchez during Wednesday’s hearing at the legislature on the draft environmental impact statement.
Officials from the Guam Power Authority and the Guam Waterworks Authority outlined the critical projects that must be completed before the thousands of marines and their families arrive on Guam.
Sanchez stressed the importance of moving forward with these projects because if the critical upgrades are not made before the realignment of the Marines and their dependents, then Guam’s utility and water systems face being overtaxed.
But although the military draft impact statement has identified where Guam’s power, water and wastewater companies should make repairs to their systems in order to handle an accelerated population growth, it doesn’t identify a funding source.
According to Sanchez, the utilities companies want the Department of Defense to absorb any direct or indirect upgrade costs because current users shouldn’t have to pay for the burden of upgrading systems because of new users.
Sanchez said that even though upgrades would have had to be made eventually, with or without the buildup, agencies have to deal with the pressure of upgrading its systems at an accelerated pace.
According to GPA general manager Kin Flores, an estimated $200 million in upgrades is needed in order to handle the increased demand on the island’s power systems.
Flores said that the impact statement recommended GPA recondition several power units, and refurbishes five of the island’s CTs, or current transformers, and make upgrades to the Orote plant.
He added that the study also identified long-term solutions to ensure the power authority will be able to sustain the island’s needs post-buildup.
GPA will determine whether it will pursue building a new plant, much like the one at Cabras, or build a plant at Potts Junction.
GWA faces similar problems, as the controversial document urges waterworks upgrades worth an estimated $300 million.
According to Julie Shae, of GWA, the company will have to make upgrades to waterlines near the marines’ housing units.
However, the environmental impact statement lists four different alternatives for where the marines might be housed.
She added that GWA will have to upgrade its systems in 2013, 2016 and again in 2021 to handle the demands of a bigger population.
GWA general manager John Benavente said the major flaw with the military plan is that they do not address funding for projects off base.
“DOD thinks that development fees will address the costs associated with the growth,” said Benavente. “But GWA does not agree.”
The two companies need to locate a combined $500 million in funding for the necessary projects before the buildup begins.
Tuesday, February 02, 2010
GPA, GWA need $500M upgrades
GPA, GWA need $500M upgrades
By Laura Matthews • Pacific Daily News • January 28, 2010
Guam's power and water agencies said about $500 million worth of facility upgrades are needed to prepare for the population influx expected with the military buildup, but existing ratepayers shouldn't have to be burdened with that entire cost, said Consolidated Commission on Utilities Chairman Simon Sanchez.
The Department of Defense must pay for all impacts -- direct and indirect -- arising from the buildup, Sanchez said during a public hearing yesterday evening at the Legislature. The hearing was one in a series this week on the buildup's impact on projects.
"We are here to support all the growth on Guam, especially the community," Sanchez said. "The buildup has to fit us, not us fit the buildup. ... If we can get DOD to share the requirements, that's a win-win solution."
One way to share those costs is to have the military and Guam's utility agencies combine their systems and facilities, said John Jenson, professor of hydrology at the Water and Environmental Research Institute at the University of Guam.
"To keep the cost low for everybody, we need to really have an integrated system in which production is optimized," Jenson said.
The island's infrastructure must be improved if it is to handle the 20 years of growth it will get in five years as a result of the relocation of the Marines to Guam and other military expansion projects throughout the island.
Some 8,000 Marines and their 9,000 dependents will be transferred from Okinawa as part of the buildup. As well, about 80,000 people will arrive here at the peak of the buildup in 2014 because of the job opportunities related to the buildup.
Guam's power and water utilities have ailing facilities and cannot support such growth without major upgrades.
If the military relies on Guam Power Authority for its power needs, which the Defense Department has said it intends to do, GPA would need to be able to provide about 25 megawatts more.
That means upgrading GPA's 15 transmissions and substations at an estimated cost of $77 million. The power agency would also need to improve its three combustion turbines, and that is estimated to cost about $30 million, said GPA spokesman Art Perez.
And more than $300 million in upgrades is planned for the Guam Waterworks Authority over the next five years, Sanchez said.
"This is to begin to fix and upgrade the existing GWA systems regardless of the proposed buildup," Sanchez said.
By Laura Matthews • Pacific Daily News • January 28, 2010
Guam's power and water agencies said about $500 million worth of facility upgrades are needed to prepare for the population influx expected with the military buildup, but existing ratepayers shouldn't have to be burdened with that entire cost, said Consolidated Commission on Utilities Chairman Simon Sanchez.
The Department of Defense must pay for all impacts -- direct and indirect -- arising from the buildup, Sanchez said during a public hearing yesterday evening at the Legislature. The hearing was one in a series this week on the buildup's impact on projects.
"We are here to support all the growth on Guam, especially the community," Sanchez said. "The buildup has to fit us, not us fit the buildup. ... If we can get DOD to share the requirements, that's a win-win solution."
One way to share those costs is to have the military and Guam's utility agencies combine their systems and facilities, said John Jenson, professor of hydrology at the Water and Environmental Research Institute at the University of Guam.
"To keep the cost low for everybody, we need to really have an integrated system in which production is optimized," Jenson said.
The island's infrastructure must be improved if it is to handle the 20 years of growth it will get in five years as a result of the relocation of the Marines to Guam and other military expansion projects throughout the island.
Some 8,000 Marines and their 9,000 dependents will be transferred from Okinawa as part of the buildup. As well, about 80,000 people will arrive here at the peak of the buildup in 2014 because of the job opportunities related to the buildup.
Guam's power and water utilities have ailing facilities and cannot support such growth without major upgrades.
If the military relies on Guam Power Authority for its power needs, which the Defense Department has said it intends to do, GPA would need to be able to provide about 25 megawatts more.
That means upgrading GPA's 15 transmissions and substations at an estimated cost of $77 million. The power agency would also need to improve its three combustion turbines, and that is estimated to cost about $30 million, said GPA spokesman Art Perez.
And more than $300 million in upgrades is planned for the Guam Waterworks Authority over the next five years, Sanchez said.
"This is to begin to fix and upgrade the existing GWA systems regardless of the proposed buildup," Sanchez said.
Tuesday, January 19, 2010
DEIS perspectives: It’s a Catch-22
DEIS perspectives: It’s a Catch-22
Tuesday, 19 January 2010 05:40
by Leevin Taitano Camacho
DEIS Perspectives
THE public hearings have come to an end and most people agree that Guam will see an increase in economic activity as a result of the buildup. Some have taken it further and suggested that the additional tax revenues GovGuam is expected to receive will improve GovGuam services and the standard of living for most of us. They reason that GovGuam will be able to fix the Guam Department of Education, Guam Memorial Hospital and other public agencies with the additional $327 million collected in taxes in 2014 and $96 million collected in 2017 and onward. This logic, however, is oversimplified because it fails to take into account any costs associated with the anticipated population explosion.
According to the draft environmental impact statement, Guam is expected to receive an increase of $327 million in 2014 and a population increase of 79,178 people. This averages out to an additional $4,130 in taxes per person. By 2017 and onward, the additional tax revenue will decrease to $96 million with an increase of 33,431 people. This averages out to $2,890 in additional taxes per person, which is lower than the current amount of taxes GovGuam collects per person. In the long term, GovGuam will receive 25 percent in additional tax revenues, but will also experience a 17 percent increase in population.
To get an idea of specific costs associated with the increase in population, one need look no further than the draft impact report which predicts that agencies such as DOE, Guam Department of Mental Health and Substance Abuse other public safety agencies will have to increase their staffing by 44 percent in 2014 and 17 percent in 2017 and beyond. DOE will have to hire 420 additional teachers in 2014 to maintain the current teacher to student ratio after the influx of 6,200 students.
The response is that GovGuam will be able to pay for the increase in demand for public services with the increase in tax revenue. This begs the question as GovGuam can only tax people when they get to Guam. In contrast to GPA and GWA, which both can raise rates now to pay for improvements, DOE and other agencies rely primarily on the general fund for their budget. If GovGuam does not have enough revenue to prepare for the population boom, GovGuam will either have to take on more debt, or our public schools, hospital and other public services will be even more overburdened than they are today.
GovGuam’s financial inability to properly prepare for the population explosion is even more concerning when viewed along with the draft impact report’s explicit finding that the standard of living on Guam, or purchasing power, will most likely decrease for people on fixed incomes because of the rising costs of goods caused by the buildup. Putting two and two together, the same people who use GMH and send their children to public schools will have to endure even more overcrowding at our schools and hospital and have a lower standard of living.
The draft study predicts that Guam will see an increase in economic activity and GovGuam will see an increase in tax revenue. But the idea that GovGuam will be able to fix GovGuam agencies such as DOE and GMH or that the standard of living for most people on Guam will improve is not rooted in the text of the draft environmental impact statement.
(Leevin Taitano Camacho, a resident of Yigo, is lawyer).
Tuesday, 19 January 2010 05:40
by Leevin Taitano Camacho
DEIS Perspectives
THE public hearings have come to an end and most people agree that Guam will see an increase in economic activity as a result of the buildup. Some have taken it further and suggested that the additional tax revenues GovGuam is expected to receive will improve GovGuam services and the standard of living for most of us. They reason that GovGuam will be able to fix the Guam Department of Education, Guam Memorial Hospital and other public agencies with the additional $327 million collected in taxes in 2014 and $96 million collected in 2017 and onward. This logic, however, is oversimplified because it fails to take into account any costs associated with the anticipated population explosion.
According to the draft environmental impact statement, Guam is expected to receive an increase of $327 million in 2014 and a population increase of 79,178 people. This averages out to an additional $4,130 in taxes per person. By 2017 and onward, the additional tax revenue will decrease to $96 million with an increase of 33,431 people. This averages out to $2,890 in additional taxes per person, which is lower than the current amount of taxes GovGuam collects per person. In the long term, GovGuam will receive 25 percent in additional tax revenues, but will also experience a 17 percent increase in population.
To get an idea of specific costs associated with the increase in population, one need look no further than the draft impact report which predicts that agencies such as DOE, Guam Department of Mental Health and Substance Abuse other public safety agencies will have to increase their staffing by 44 percent in 2014 and 17 percent in 2017 and beyond. DOE will have to hire 420 additional teachers in 2014 to maintain the current teacher to student ratio after the influx of 6,200 students.
The response is that GovGuam will be able to pay for the increase in demand for public services with the increase in tax revenue. This begs the question as GovGuam can only tax people when they get to Guam. In contrast to GPA and GWA, which both can raise rates now to pay for improvements, DOE and other agencies rely primarily on the general fund for their budget. If GovGuam does not have enough revenue to prepare for the population boom, GovGuam will either have to take on more debt, or our public schools, hospital and other public services will be even more overburdened than they are today.
GovGuam’s financial inability to properly prepare for the population explosion is even more concerning when viewed along with the draft impact report’s explicit finding that the standard of living on Guam, or purchasing power, will most likely decrease for people on fixed incomes because of the rising costs of goods caused by the buildup. Putting two and two together, the same people who use GMH and send their children to public schools will have to endure even more overcrowding at our schools and hospital and have a lower standard of living.
The draft study predicts that Guam will see an increase in economic activity and GovGuam will see an increase in tax revenue. But the idea that GovGuam will be able to fix GovGuam agencies such as DOE and GMH or that the standard of living for most people on Guam will improve is not rooted in the text of the draft environmental impact statement.
(Leevin Taitano Camacho, a resident of Yigo, is lawyer).
Monday, December 21, 2009
Longer time for Port contract review sought
Longer time for Port contract review sought
Monday, 21 December 2009 03:37
by Jude Lizama | Variety News Staff
THIS past Friday the chairman for the Committee on Utilities, Transportation, Public Works and Veterans Affairs, Sen. Tom Ada, introduced a bill he hopes will improve service and reliability at Guam’s only commercial port.
Bill 300 seeks to extend the period of time in which the Port Authority of Guam is to award a performance management contract for the management, and operation and maintenance of port cargo handling equipment and associated facilities.
“Due to newly enacted public laws not requiring the review and approval of Port contracts by the Public Utilities Commission and the involvement of the Attorney General in the procurement oversight and advisement of the award, such an extension is needed,” according to a media release from Ada’s office.
Current public law allows the port authority to award a performance contract subject to the request for proposal, multistep bid or invitation for bid within 120 to 150 days of the date of issuance of such solicitations, provided, submitted proposals are in compliance with the procurement laws of the island.
Ada’s measure would extend the timeline to a period stretching between 150 and 220 days in length.
The senator said “the concept of a performance management contract has worked well for both utility agencies on island, the Guam Power Authority and the Guam Waterworks Authority, resulting in greater service reliability and efficiencies.”
Ada seeks to enable port board of directors to enter into public-private partnerships to “manage the cargo handling operations.”
“With the recent adoption of the Port Master Plan and the impending military buildup, it is critical that the port be prepared for the challenges associated with this growth,” Ada said. “Through a public-private partnership, the port will be able to meet the increase service demands expected and more importantly, to bring world-class standards to its existing port operations.”
Monday, 21 December 2009 03:37
by Jude Lizama | Variety News Staff
THIS past Friday the chairman for the Committee on Utilities, Transportation, Public Works and Veterans Affairs, Sen. Tom Ada, introduced a bill he hopes will improve service and reliability at Guam’s only commercial port.
Bill 300 seeks to extend the period of time in which the Port Authority of Guam is to award a performance management contract for the management, and operation and maintenance of port cargo handling equipment and associated facilities.
“Due to newly enacted public laws not requiring the review and approval of Port contracts by the Public Utilities Commission and the involvement of the Attorney General in the procurement oversight and advisement of the award, such an extension is needed,” according to a media release from Ada’s office.
Current public law allows the port authority to award a performance contract subject to the request for proposal, multistep bid or invitation for bid within 120 to 150 days of the date of issuance of such solicitations, provided, submitted proposals are in compliance with the procurement laws of the island.
Ada’s measure would extend the timeline to a period stretching between 150 and 220 days in length.
The senator said “the concept of a performance management contract has worked well for both utility agencies on island, the Guam Power Authority and the Guam Waterworks Authority, resulting in greater service reliability and efficiencies.”
Ada seeks to enable port board of directors to enter into public-private partnerships to “manage the cargo handling operations.”
“With the recent adoption of the Port Master Plan and the impending military buildup, it is critical that the port be prepared for the challenges associated with this growth,” Ada said. “Through a public-private partnership, the port will be able to meet the increase service demands expected and more importantly, to bring world-class standards to its existing port operations.”
Thursday, December 10, 2009
CCU: Military will pay its share
CCU: Military will pay its share
Thursday, 10 December 2009 23:40 by Jude Lizama | Variety News Staff
CONSOLIDATED Commission on Utilities commissioner Joseph Duenas said the Guam Power Authority and the Guam Waterworks Authority look forward to generating bigger revenues and expanding their customer base by having the military as a paying customer.
He described as “collaborative” and “fair” the dialogue with military buildup planners with respect to increasing demands and capacities of island utility services and the impact to ratepayers.
“Working with the military we have two sides. There is the power side and then there is the water-wastewater side. The military pays its fair share,” Duenas said. “We reflect the cost back to the ratepayer. Whatever cost to provide a service, we would like that back.”
Because of the buildup plans at the utility agencies will be accelerated to meet the increasing demands expected in the wake of a population explosion that will see up to one-third more new residents over the next few years.
According to Duenas, the military is a “full wholesale customer” with whom local utility commissioners have “reached very good agreements.”
Duenas said CCU is confident it will make some improvements to the system that will address some of their needs which allows GPA to expand its customer base. “In a business, when you get more customers you get more revenue, you get to do more things,” he added.
GWA currently purchases water from the Navy for redistribution in southern communities while in the north, “Andersen [Air Force Base] discharges its sewage into the northern treatment plant already, so we provide a service for them there,” Duenas said.
At present the military and GWA maintain separate water systems by the commissioner sees more integration as the military will “probably become a customer of ours in terms of the wastewater given the relationship we already have with Andersen.”
An important factor for consideration, according to Duenas, is the need to look at the aquifer with a holistic approach. With regard to protecting the northern lens aquifer, Duenas said that GWA and the military are “on the same page.”
“We’re one community. If we damage this aquifer, that’s it; everybody loses,” he said. “The long range plan is that hopefully they become our customer and we maintain all of the wells.”
Thursday, 10 December 2009 23:40 by Jude Lizama | Variety News Staff
CONSOLIDATED Commission on Utilities commissioner Joseph Duenas said the Guam Power Authority and the Guam Waterworks Authority look forward to generating bigger revenues and expanding their customer base by having the military as a paying customer.
He described as “collaborative” and “fair” the dialogue with military buildup planners with respect to increasing demands and capacities of island utility services and the impact to ratepayers.
“Working with the military we have two sides. There is the power side and then there is the water-wastewater side. The military pays its fair share,” Duenas said. “We reflect the cost back to the ratepayer. Whatever cost to provide a service, we would like that back.”
Because of the buildup plans at the utility agencies will be accelerated to meet the increasing demands expected in the wake of a population explosion that will see up to one-third more new residents over the next few years.
According to Duenas, the military is a “full wholesale customer” with whom local utility commissioners have “reached very good agreements.”
Duenas said CCU is confident it will make some improvements to the system that will address some of their needs which allows GPA to expand its customer base. “In a business, when you get more customers you get more revenue, you get to do more things,” he added.
GWA currently purchases water from the Navy for redistribution in southern communities while in the north, “Andersen [Air Force Base] discharges its sewage into the northern treatment plant already, so we provide a service for them there,” Duenas said.
At present the military and GWA maintain separate water systems by the commissioner sees more integration as the military will “probably become a customer of ours in terms of the wastewater given the relationship we already have with Andersen.”
An important factor for consideration, according to Duenas, is the need to look at the aquifer with a holistic approach. With regard to protecting the northern lens aquifer, Duenas said that GWA and the military are “on the same page.”
“We’re one community. If we damage this aquifer, that’s it; everybody loses,” he said. “The long range plan is that hopefully they become our customer and we maintain all of the wells.”
Wednesday, December 09, 2009
DEIS: utility project hazards negligible
DEIS: utility project hazards negligible
Thursday, 10 December 2009 04:41 by Jude Lizama | Variety News Staff
EPA reports 8 facilities show increase in toxic emissions
ENVIRONMENTAL impacts of two islandwide water system upgrade proposals have been cited within the draft environmental impact statement for the Guam military buildup.
The preferred alternative for potable water system upgrades would consist of installing as many as 22 new wells at Andersen Air Force Base, rehabilitating existing wells, interconnecting with the Guam Waterworks Authority water system and associated transmission and distribution systems.
Much like the impact study information on possible hazards to the local environment as a result of Guam Power Authority islandwide power system upgrades, the study indicates that these proposed activities “would result in the use of slightly more hazardous materials as compared with existing quantities,” to include the use of petroleum, oil, and lubricants for “heavy equipment, vehicles, generators, and related activities.”
The military buildup report estimates 750 lbs. of hazardous materials “would be generated annually from these activities.”
The impact report said increases in the use of hazardous waste are “judged to be negligible as a result of these existing potable water upgrade activities.”
EPA report
This conclusion, however, contradicts a recent report from the U.S. Environmental Protection Agency.
According to EPA, eight facilities on Guam were found to have an 8 percent increase in toxic chemicals released into the air, land and water in 2008 when compared to 2007, according to new data released today by the U.S. Environmental Protection Agency. Overall at 53, Guam ranks among one of the lowest of 56 states and territories in total releases.
While the island's water and land releases have increased since 2007, underground injection, off-site transfers, and air releases have decreased. The largest increase was of on-site land releases of 1,048 pounds, largely due to increased releases reported by Andersen Air Force Base in Yigo.
Inventory
Facilities found with increased toxic releases were Guam Power Authority,
Hawaiian Rock Products Guam, Mobil Oil Guam Inc. (Cabras Island terminal), Shell Guam, South Pacific Petroleum Corp., Tanguisson Power Plant, US Air Force Andersen Air Force Base and Naval Base (Apra Harbor WWTP).
“We encourage people to use data from the Toxics Release Inventory in order to gain a better understanding of what is being released into their neighborhoods,” said Laura Yoshii, acting EPA administrator for the Pacific Southwest region.
“Industry and communities informed with accurate information can use the inventory as a starting point to find opportunities to reduce the amount of pollutants released into the air we breathe, the water we drink and the land we enjoy.”
The data comes from the EPA’s Toxics Release Inventory. It’s one of EPA’s largest publicly available databases, arming communities with valuable information on more than 650 toxic chemicals released by various industries. The chemical information in the inventory is calculated by industrial facilities and reported to the EPA, as required by law.
Total releases include toxic chemicals discharged by facilities to air, water, land, and underground, and the amount transferred off-site for disposal. Regulatory controls apply to many of the reported releases. Reporting facilities must comply with environmental standards set by local, state and federal agencies.
Thursday, 10 December 2009 04:41 by Jude Lizama | Variety News Staff
EPA reports 8 facilities show increase in toxic emissions
ENVIRONMENTAL impacts of two islandwide water system upgrade proposals have been cited within the draft environmental impact statement for the Guam military buildup.
The preferred alternative for potable water system upgrades would consist of installing as many as 22 new wells at Andersen Air Force Base, rehabilitating existing wells, interconnecting with the Guam Waterworks Authority water system and associated transmission and distribution systems.
Much like the impact study information on possible hazards to the local environment as a result of Guam Power Authority islandwide power system upgrades, the study indicates that these proposed activities “would result in the use of slightly more hazardous materials as compared with existing quantities,” to include the use of petroleum, oil, and lubricants for “heavy equipment, vehicles, generators, and related activities.”
The military buildup report estimates 750 lbs. of hazardous materials “would be generated annually from these activities.”
The impact report said increases in the use of hazardous waste are “judged to be negligible as a result of these existing potable water upgrade activities.”
EPA report
This conclusion, however, contradicts a recent report from the U.S. Environmental Protection Agency.
According to EPA, eight facilities on Guam were found to have an 8 percent increase in toxic chemicals released into the air, land and water in 2008 when compared to 2007, according to new data released today by the U.S. Environmental Protection Agency. Overall at 53, Guam ranks among one of the lowest of 56 states and territories in total releases.
While the island's water and land releases have increased since 2007, underground injection, off-site transfers, and air releases have decreased. The largest increase was of on-site land releases of 1,048 pounds, largely due to increased releases reported by Andersen Air Force Base in Yigo.
Inventory
Facilities found with increased toxic releases were Guam Power Authority,
Hawaiian Rock Products Guam, Mobil Oil Guam Inc. (Cabras Island terminal), Shell Guam, South Pacific Petroleum Corp., Tanguisson Power Plant, US Air Force Andersen Air Force Base and Naval Base (Apra Harbor WWTP).
“We encourage people to use data from the Toxics Release Inventory in order to gain a better understanding of what is being released into their neighborhoods,” said Laura Yoshii, acting EPA administrator for the Pacific Southwest region.
“Industry and communities informed with accurate information can use the inventory as a starting point to find opportunities to reduce the amount of pollutants released into the air we breathe, the water we drink and the land we enjoy.”
The data comes from the EPA’s Toxics Release Inventory. It’s one of EPA’s largest publicly available databases, arming communities with valuable information on more than 650 toxic chemicals released by various industries. The chemical information in the inventory is calculated by industrial facilities and reported to the EPA, as required by law.
Total releases include toxic chemicals discharged by facilities to air, water, land, and underground, and the amount transferred off-site for disposal. Regulatory controls apply to many of the reported releases. Reporting facilities must comply with environmental standards set by local, state and federal agencies.
Monday, December 07, 2009
Troop transition brings big power demands
Troop transition brings big power demands
Posted: Dec 05, 2009 1:57 PM
Updated: Dec 05, 2009 1:57 PM
by Michele Catahay
Guam - The movement of thousands of U.S. Marines and their dependents will mean an increase in power demand. The Guam Power Authority is currently looking at the positive and negative impacts the buildup will have on power supply on island.
The Guam Power Authority has been meeting with officials from the Joint Guam Program Office to discuss what's being proposed for the buildup. The bottom lines, says agency spokesman Art Perez, is that GPA is looking to the Department of Defense to fork out the funds to support such a growth in population.
"It's been our position and the [Consolidated Commission on Utilities'] that growth should pay for growth. Those having an impact on the existing community should pay for that impact and that position has not changed. The plans that we provide through JGPO shows that we can deliver power service to their door step," Perez explained.
According to JGPO's Draft Environmental Impact Statement, the estimated total Marine Corps demand is 20.94 megawatts - with the total DoD demand being 123.63 megawatts. It's clear that much work needs to be done to meet the demand anticipated to occur as early as 2015. Perez adds that the ultimate goal is to ensure all communities benefit from the move.
"The EIS also shows there is also going to be a civilian impact with the amount of workforce that will be coming in, the federal employees that may come to Guam, and the families if they live off-base. It will have an impact on the existing civilian community."
Long-term alternatives include the construction of a new power plant at Cabras or even at Potts Junction in Dededo. Another one involves for GPA to provide the financing and planning for the power generation system. Here GPA would be responsible to plan and implement the necessary generation expansion to support the load. Perez says GPA will be prepared to move forward if in fact they receive the money needed to make such upgrades to the system.
"[At] GPA, plans are already in place. Getting power through their doorstep, there's no problem. It's now a matter of who's paying for it and from what I gather, they're not opposed to paying for the impact. It's just what that cost will be," he said. "In terms of reliability, if it means upgrading substations, then that means power quality to all circuits tied into that will see a significant of power quality, less power outages, better voltage control in the surrounding area."
As for whether building more power plants is the answer, Perez says they would have to look and see whether such a move would work. "What we need to do is see how that could tie into our power system. You just don't put a power plant anywhere. There's permitting and GPA has over a hundred megawatts of reserve right now. What we need to do, is make sure whatever additional load we may have not only meet that load, but plan for our overhauls and maintenance activities," he added.
Posted: Dec 05, 2009 1:57 PM
Updated: Dec 05, 2009 1:57 PM
by Michele Catahay
Guam - The movement of thousands of U.S. Marines and their dependents will mean an increase in power demand. The Guam Power Authority is currently looking at the positive and negative impacts the buildup will have on power supply on island.
The Guam Power Authority has been meeting with officials from the Joint Guam Program Office to discuss what's being proposed for the buildup. The bottom lines, says agency spokesman Art Perez, is that GPA is looking to the Department of Defense to fork out the funds to support such a growth in population.
"It's been our position and the [Consolidated Commission on Utilities'] that growth should pay for growth. Those having an impact on the existing community should pay for that impact and that position has not changed. The plans that we provide through JGPO shows that we can deliver power service to their door step," Perez explained.
According to JGPO's Draft Environmental Impact Statement, the estimated total Marine Corps demand is 20.94 megawatts - with the total DoD demand being 123.63 megawatts. It's clear that much work needs to be done to meet the demand anticipated to occur as early as 2015. Perez adds that the ultimate goal is to ensure all communities benefit from the move.
"The EIS also shows there is also going to be a civilian impact with the amount of workforce that will be coming in, the federal employees that may come to Guam, and the families if they live off-base. It will have an impact on the existing civilian community."
Long-term alternatives include the construction of a new power plant at Cabras or even at Potts Junction in Dededo. Another one involves for GPA to provide the financing and planning for the power generation system. Here GPA would be responsible to plan and implement the necessary generation expansion to support the load. Perez says GPA will be prepared to move forward if in fact they receive the money needed to make such upgrades to the system.
"[At] GPA, plans are already in place. Getting power through their doorstep, there's no problem. It's now a matter of who's paying for it and from what I gather, they're not opposed to paying for the impact. It's just what that cost will be," he said. "In terms of reliability, if it means upgrading substations, then that means power quality to all circuits tied into that will see a significant of power quality, less power outages, better voltage control in the surrounding area."
As for whether building more power plants is the answer, Perez says they would have to look and see whether such a move would work. "What we need to do is see how that could tie into our power system. You just don't put a power plant anywhere. There's permitting and GPA has over a hundred megawatts of reserve right now. What we need to do, is make sure whatever additional load we may have not only meet that load, but plan for our overhauls and maintenance activities," he added.
Wednesday, December 02, 2009
Power upgrades raise toxic waste concerns
Power upgrades raise toxic waste concerns
Thursday, 03 December 2009 04:12
by Jude Lizama | Variety News Staff
THE draft environmental impact statement raises concerns about hazardous materials and waste with regard to three possible Guam Power Authority power grid upgrade alternatives that must be achieved in order to absorb future electrical demands as a result of the U.S. military buildup.
The preferred system upgrade alternative, which would require the reconditioning of existing permitted facilities such as the Marbo, Yigo, Dededo No. 1, and Macheche combustion turbine units, which, according to the impact study, are not currently being used up to permit limits. Transmission and distribution upgrades would be made to existing above ground and underground transmission lines.
According to the impact study, the proposed system upgrade initiatives would result in the use of “slightly more hazardous materials,” such as petroleum, oils, and lubricants; and fuels for heavy equipment, vehicles, generators, and related activities.
Additionally, the use of such fuels that may post environmental concerns will be used for repair, replacement, or renovation activities related to the system upgrade initiatives.
The study estimates around 1,500 lbs of hazardous materials that would be generated annually as a result of the proposed reconditioning, upgrade and operational activities.
Cited effects of system upgrades include increases in hazardous materials storage, use, handling, generation, and disposal; increase in fueling operations; possible use of contaminated site footprints for reconditioning projects; and potential increases for site runoff.
Potential increased site runoff
The study also cited impacts to include spills during construction activities; increased risks to human health and the environment to include terrestrial and ecosystems; and “Violations of applicable federal, state, local, or DoD laws and regulations during construction and demolition operations.”
Thursday, 03 December 2009 04:12
by Jude Lizama | Variety News Staff
THE draft environmental impact statement raises concerns about hazardous materials and waste with regard to three possible Guam Power Authority power grid upgrade alternatives that must be achieved in order to absorb future electrical demands as a result of the U.S. military buildup.
The preferred system upgrade alternative, which would require the reconditioning of existing permitted facilities such as the Marbo, Yigo, Dededo No. 1, and Macheche combustion turbine units, which, according to the impact study, are not currently being used up to permit limits. Transmission and distribution upgrades would be made to existing above ground and underground transmission lines.
According to the impact study, the proposed system upgrade initiatives would result in the use of “slightly more hazardous materials,” such as petroleum, oils, and lubricants; and fuels for heavy equipment, vehicles, generators, and related activities.
Additionally, the use of such fuels that may post environmental concerns will be used for repair, replacement, or renovation activities related to the system upgrade initiatives.
The study estimates around 1,500 lbs of hazardous materials that would be generated annually as a result of the proposed reconditioning, upgrade and operational activities.
Cited effects of system upgrades include increases in hazardous materials storage, use, handling, generation, and disposal; increase in fueling operations; possible use of contaminated site footprints for reconditioning projects; and potential increases for site runoff.
Potential increased site runoff
The study also cited impacts to include spills during construction activities; increased risks to human health and the environment to include terrestrial and ecosystems; and “Violations of applicable federal, state, local, or DoD laws and regulations during construction and demolition operations.”
Tuesday, December 01, 2009
Power Flux
Power Flux
Power demand to increased by 43megawatt within 10 years
Wednesday, 02 December 2009 04:11 by Jude Lizama | Variety News Staff
ENERGY demand is projected to increase by a total of 43 megawatt within a 10-year period of fluctuating population growth, and the Department of Defense plans to upgrade the Guam Power Authority’s existing facilities to meet the power requirements, according to the draft environmental impact study.
The impact report anticipates the island will need to absorb approximately 7,000 people by next year. The population explosion soars by 2014 with 40,000 new residents before sliding back slightly by 2019 with 10,000 more people than today, if the impact report numbers are reliable.
With so many new residents in the ensuing years, the island wide power grid will see correlated demands on the electrical system. Initially demand will increase by 4.93 megawatts from the current peak demand production of 281.5 megawatts. This is projected to occur by next year.
However in 2014, megawattage requirements zoom by a whopping scale of nearly 30 MW. Within five years following that explosive increase Guam’s power grid is zapped once again with an expected demand increase of 7.88 megawatts.
Current demand
According to the Guam Economic Development Authority’s website, GPA currently provides service to 45,751 customers with an annual budget of approximately $291 million. Current peak system demand to date is 281.5 MW with a 98 percent reserve margin.
GPA has an installed generation capacity of 552.2 MW gross including 181 MW from independent power producers. GPA has organized 210.6 MW of its base load capacity under two Performance Management Contracts.
With the increase in electrical demands just over the horizon, the study cited various alternatives to enhance island wide power capabilities in order to meet anticipated demand over the coming years.
The Consolidated Commission on Utilities is hoping to arrange a power integration system with the defense department to produce power that will be shared by the military and civilian communities.
Option
The preferred “Interim Alternative 1” requires reconditioning of existing combustion turbines and further upgrades to GPAs transmission and distribution systems.
Upgrades which the impact study suggested would create “new construction or enlargement of the existing footprint of the GPA facility” adding, efforts to undertake the initiative should be undertaken by the local power authority on its existing facilities.
Reconditioning facilities would most likely occur at Marbo, Yigo, Dededo No. 1, and Macheche sites which the military report notes as not currently being used to permit limits.
Transmission and distribution system upgrades would also be vital to supplying the military as a consumer with quality and consistent power supply. The impact report considered above ground and subterranean transmission lines as part of an initiative to adequately address through upgrades supply and demand logistics as well.
Friday, November 20, 2009
EIS gives clues to buildup activities
EIS gives clues to buildup activities
By Amritha Alladi • Pacific Daily News • November 21, 2009
Within the thousands of pages of Draft Environmental Impact Statement documents that became public for the first time yesterday, clues abound as to how Guam could change with the looming military buildup.
Here's a quick glance of some of the proposed changes on Guam if the draft becomes final -- a decision likely reached at some point next year, according to military time lines:
# An Army missile defense's administrative offices will share a vast location in the Finegayan area with the preferred Marine Corps base in Finegayan;
# A population boom that, at the height of the military buildup activities, will add 79,178 people to the island -- approximately half the number of people currently on the island;
# Military projects that will require between 600 and 1,100 acres of mostly military-owned and other federal government-controlled land; and
# More waterfront space and support facilities for aircraft carrier visits.
The EIS gives Guam residents the first concrete idea of how Guam is expected to change as a result of the military buildup on Guam.
The population explosion itself is expected to strain an already overburdened utilities, which would require infrastructure improvements -- if the Defense Department continues to be a customer of both the Guam Waterworks Authority and Guam Power Authority.
The preferred utilities option for the buildup, according to the EIS, is for the Defense Department to become a bigger customer of GWA and GPA.
For solid waste, the DOD will use the existing landfill at Apra Harbor until the new public landfill at Layon, which the local government is paying for, is ready, the EIS states.
The buildup on Guam, according to the EIS, may include:
# the shift of 8,600 Marines and their 9,000 dependents from Okinawa to Guam;
# the construction of a new deep wharf in Apra Harbor to support a transient nuclear powered aircraft carrier; and
# development of facilities and infrastructure to support relocating about 600 military personnel and their 900 dependents to establish and operate an Army Missile Defense Task Force facility in the Finegayan region.
Marine base, housing
Of eight alternatives that were originally generated for the main area designated for the Marines' headquarters and administrative support, housing, open storage, as well as retail, school, recreational, medical and day care services -- four continue to be analyzed.
All of them would take anywhere from 600 to 1,100 acres of land that has, so far, been established to protect endangered or threatened species of wildlife and vegetation in the Overlay Refuge in Finegayan, according to the EIS.
The Defense Department prefers using existing DOD land parcels from the Naval Computer Telecommunications Stations in Finegayan, South Finegayan, and long-term leasing of Federal Aviation Administration lands for the main Marine base area. This area would be bound on the north by the Andersen Air Force Base and Route 3, the cliffline and Philippine Sea to the west, a limited residential development on the east, and the Harmon Village residential area to the south, according to the EIS.
This alternative would develop just over half of the Overlay Refuge area.
But the DOD has also suggested three alternatives to this arrangement that would infringe less on the Overlay Refuge and instead place military housing facilities and quality of life services outside the main Marine base area. These alternatives could lead to the removal of the Navy golf course or the acquisition or long-term lease of private lands in the Harmon Annex.
Army missile defense task force
The Defense Department would prefer that the Marine Corps base in Finegayan share a location with the proposed administrative offices and support facilities for the planned Army Missile Defense Task Force, according to the EIS.
This option would require the housing and headquarters for the Army facility to be "co-located" in the eastern portion of the NCTS in Finegayan, adjacent to the proposed Marine Corps housing and administrative units. Housing units for the task force personnel could be co-located with Marine Corps units in South Finegayan, the EIS states.
Another possible site for the task force headquarters and all of its housing units could potentially be placed within Navy property in Barrigada, according to the EIS.
Air field, aircraft carrier facilities
The DOD plans to construct an airfield at the North Ramp of Andersen Air Force Base while the South Ramp would serve as an air embarkation facility.
There are no alternative sites for the construction of the airfield at Andersen.
On the other hand, there are two alternatives being considered for aircraft carrier berthing, both of which require widening of the Outer Apra Harbor by 600 feet.
The DOD has shown preference for the construction of a wharf at Polaris Point, which calls for dredging of 600 feet in the Inner Apra Harbor to meet aircraft carrier requirements.
An alternative location at the former Navy ship repair facility would meet the aircraft carrier requirements without having to dredge.
The document states that damage caused to the reef as a result of dredging may be mitigated with watershed management projects and artificial reef construction. Both wharf locations are on Navy submerged lands and would affect man-made coastlines, according to the EIS.
Guam residents have until Feb. 17, 2010, to comment and provide feedback on the draft EIS.
By Amritha Alladi • Pacific Daily News • November 21, 2009
Within the thousands of pages of Draft Environmental Impact Statement documents that became public for the first time yesterday, clues abound as to how Guam could change with the looming military buildup.
Here's a quick glance of some of the proposed changes on Guam if the draft becomes final -- a decision likely reached at some point next year, according to military time lines:
# An Army missile defense's administrative offices will share a vast location in the Finegayan area with the preferred Marine Corps base in Finegayan;
# A population boom that, at the height of the military buildup activities, will add 79,178 people to the island -- approximately half the number of people currently on the island;
# Military projects that will require between 600 and 1,100 acres of mostly military-owned and other federal government-controlled land; and
# More waterfront space and support facilities for aircraft carrier visits.
The EIS gives Guam residents the first concrete idea of how Guam is expected to change as a result of the military buildup on Guam.
The population explosion itself is expected to strain an already overburdened utilities, which would require infrastructure improvements -- if the Defense Department continues to be a customer of both the Guam Waterworks Authority and Guam Power Authority.
The preferred utilities option for the buildup, according to the EIS, is for the Defense Department to become a bigger customer of GWA and GPA.
For solid waste, the DOD will use the existing landfill at Apra Harbor until the new public landfill at Layon, which the local government is paying for, is ready, the EIS states.
The buildup on Guam, according to the EIS, may include:
# the shift of 8,600 Marines and their 9,000 dependents from Okinawa to Guam;
# the construction of a new deep wharf in Apra Harbor to support a transient nuclear powered aircraft carrier; and
# development of facilities and infrastructure to support relocating about 600 military personnel and their 900 dependents to establish and operate an Army Missile Defense Task Force facility in the Finegayan region.
Marine base, housing
Of eight alternatives that were originally generated for the main area designated for the Marines' headquarters and administrative support, housing, open storage, as well as retail, school, recreational, medical and day care services -- four continue to be analyzed.
All of them would take anywhere from 600 to 1,100 acres of land that has, so far, been established to protect endangered or threatened species of wildlife and vegetation in the Overlay Refuge in Finegayan, according to the EIS.
The Defense Department prefers using existing DOD land parcels from the Naval Computer Telecommunications Stations in Finegayan, South Finegayan, and long-term leasing of Federal Aviation Administration lands for the main Marine base area. This area would be bound on the north by the Andersen Air Force Base and Route 3, the cliffline and Philippine Sea to the west, a limited residential development on the east, and the Harmon Village residential area to the south, according to the EIS.
This alternative would develop just over half of the Overlay Refuge area.
But the DOD has also suggested three alternatives to this arrangement that would infringe less on the Overlay Refuge and instead place military housing facilities and quality of life services outside the main Marine base area. These alternatives could lead to the removal of the Navy golf course or the acquisition or long-term lease of private lands in the Harmon Annex.
Army missile defense task force
The Defense Department would prefer that the Marine Corps base in Finegayan share a location with the proposed administrative offices and support facilities for the planned Army Missile Defense Task Force, according to the EIS.
This option would require the housing and headquarters for the Army facility to be "co-located" in the eastern portion of the NCTS in Finegayan, adjacent to the proposed Marine Corps housing and administrative units. Housing units for the task force personnel could be co-located with Marine Corps units in South Finegayan, the EIS states.
Another possible site for the task force headquarters and all of its housing units could potentially be placed within Navy property in Barrigada, according to the EIS.
Air field, aircraft carrier facilities
The DOD plans to construct an airfield at the North Ramp of Andersen Air Force Base while the South Ramp would serve as an air embarkation facility.
There are no alternative sites for the construction of the airfield at Andersen.
On the other hand, there are two alternatives being considered for aircraft carrier berthing, both of which require widening of the Outer Apra Harbor by 600 feet.
The DOD has shown preference for the construction of a wharf at Polaris Point, which calls for dredging of 600 feet in the Inner Apra Harbor to meet aircraft carrier requirements.
An alternative location at the former Navy ship repair facility would meet the aircraft carrier requirements without having to dredge.
The document states that damage caused to the reef as a result of dredging may be mitigated with watershed management projects and artificial reef construction. Both wharf locations are on Navy submerged lands and would affect man-made coastlines, according to the EIS.
Guam residents have until Feb. 17, 2010, to comment and provide feedback on the draft EIS.
Wednesday, November 18, 2009
Guam buildup tab: $2.9B
Guam buildup tab: $2.9B
By Amritha Alladi • Pacific Daily News • November 17, 2009
The government of Guam has trimmed its projected, overall cost for multi-year projects associated with a bigger population stemming from the military buildup from $6.1 billion to $2.9 billion, according to a recently released report by the U.S. Government Accountability Office.
However, GovGuam officials said yesterday that there is still uncertainty as to how those projects will be paid for, and there are ongoing discussions with Department of Defense officials to figure out how the DOD and the local government will share the costs.
The U.S. GAO report, released Friday in Washington, D.C., suggests the local government may be able to borrow some money from the bond market and pay it back with tax collections and other revenue resulting from the anticipated economic growth from the buildup -- but local officials are not partial to taking on buildup-related debt.
Local officials said they shouldn't have to pick up the tab for projects that wouldn't be necessary if the buildup weren't happening in the first place.
"Guam's ability to finance needed infrastructure projects could improve because of enhanced local economic conditions as the military buildup continues ... An increase in military and federal civilian employees on Guam stemming from the buildup may be a potential source of additional revenue," the report states.
But Bertha Duenas, director of the Bureau of Budget and Management Research, said Guam shouldn't be asked to borrow money for local projects associated with the buildup.
"Why is Guam going to be saddled with a loan to deliver what the military imposed upon us involuntarily?" Duenas asked. "We don't even know that we will have the sufficient debt limit to go into any more borrowing for the buildup."
Aulii Limtiaco, a financial consultant for the Guam Economic Development Authority, said certain GovGuam agencies that generate their own revenue still have room to borrow. For example, the Guam Power Authority, or the Guam Waterworks Authority, can pledge future revenue as a source of repayment if either agency does take on additional bond debt. In the case of the Department of Public Works, future federal highway grants can be used as a repayment to bond investors, Limtiaco said.
"These types of borrowings typically do not apply to the debt ceiling," she said of autonomous agencies that have their own cash flow.
Debt ceiling
GovGuam's debt ceiling is one of the "challenges" Guam faces in financing buildup-related projects, according to the GAO report.
"There are a few bond issues that mature in 2012, and that may free up some capacity," Limtiaco said. She added that the local government does not currently have much more borrowing capacity.
Sen. Jim Espaldon said he found it a "real insult" that the local government is being asked to borrow money for these projects at all.
"We are kind of nearing the debt ceiling in terms of our ability to (borrow through general) obligation bonds," Espaldon said. "When we start talking about water and sewer needs, pipes to be put in, I don't think (the federal government) has been much help along those lines for grants."
GovGuam's proposed roadway improvements alone amount to $1.5 billion, according to the GAO report.
Public Works Director Larry Perez said his office has been meeting with military officials weekly to discuss, on a case-by-case basis, which project improvements are driven primarily by needs presented by the buildup, and which ones would have been included as part of the DPW plans for improvements regardless of the buildup.
"We will go to the bond market for normal, organic growth," Perez said. He, too, said he didn't think it was right for Guam residents to pay for infrastructure impacts caused by the military.
The military buildup is expected to cause Guam's population to see growth in five years what it would normally take 20 years or longer to occur without the buildup, according to a previously released study for GovGuam to predict future mass transportation infrastructure.
"What normally would have taken 20 years ... (the military is) basically telling us to do now," Perez said.
For example, DPW wouldn't have planned to make drastic changes to Route 3, which sees little congestion or traffic, without the need posed by the buildup, Perez said.
Perez said there are road projects that already have federal funding commitments, including:
# $20 million a year though the Territorial Highway Program;
# $48 million from the Fiscal 2010 Defense Authorization Act for defense access road projects; and
# about $74 million in stimulus funds for other road projects.
The Port Authority of Guam, meanwhile, will receive $48 million under President Obama's economic stimulus funding.
But infrastructure improvements -- even if they are designed for military buildup-related growth -- will ultimately help boost the island's economy overall, said Carl Peterson, financial advisor at Money Resources Inc.
He said GovGuam can take on loans with the help of the federal government, and the interest can be paid with taxes, just as the GAO report suggests. With more people working and using local services, according to Peterson, more people will also pay taxes and other GovGuam fees for the services, so the local government can recoup some of the investments in infrastructure projects.
Thus, GovGuam officials should consider the military buildup projects as opportunities to generate revenue through taxes by implementing user fees for services, Peterson said.
"This is a bonanza for GovGuam and for the island," Peterson said of the buildup's economic gains.
"The biggest beneficiary will be the government, as long as they use it for services."
By Amritha Alladi • Pacific Daily News • November 17, 2009
The government of Guam has trimmed its projected, overall cost for multi-year projects associated with a bigger population stemming from the military buildup from $6.1 billion to $2.9 billion, according to a recently released report by the U.S. Government Accountability Office.
However, GovGuam officials said yesterday that there is still uncertainty as to how those projects will be paid for, and there are ongoing discussions with Department of Defense officials to figure out how the DOD and the local government will share the costs.
The U.S. GAO report, released Friday in Washington, D.C., suggests the local government may be able to borrow some money from the bond market and pay it back with tax collections and other revenue resulting from the anticipated economic growth from the buildup -- but local officials are not partial to taking on buildup-related debt.
Local officials said they shouldn't have to pick up the tab for projects that wouldn't be necessary if the buildup weren't happening in the first place.
"Guam's ability to finance needed infrastructure projects could improve because of enhanced local economic conditions as the military buildup continues ... An increase in military and federal civilian employees on Guam stemming from the buildup may be a potential source of additional revenue," the report states.
But Bertha Duenas, director of the Bureau of Budget and Management Research, said Guam shouldn't be asked to borrow money for local projects associated with the buildup.
"Why is Guam going to be saddled with a loan to deliver what the military imposed upon us involuntarily?" Duenas asked. "We don't even know that we will have the sufficient debt limit to go into any more borrowing for the buildup."
Aulii Limtiaco, a financial consultant for the Guam Economic Development Authority, said certain GovGuam agencies that generate their own revenue still have room to borrow. For example, the Guam Power Authority, or the Guam Waterworks Authority, can pledge future revenue as a source of repayment if either agency does take on additional bond debt. In the case of the Department of Public Works, future federal highway grants can be used as a repayment to bond investors, Limtiaco said.
"These types of borrowings typically do not apply to the debt ceiling," she said of autonomous agencies that have their own cash flow.
Debt ceiling
GovGuam's debt ceiling is one of the "challenges" Guam faces in financing buildup-related projects, according to the GAO report.
"There are a few bond issues that mature in 2012, and that may free up some capacity," Limtiaco said. She added that the local government does not currently have much more borrowing capacity.
Sen. Jim Espaldon said he found it a "real insult" that the local government is being asked to borrow money for these projects at all.
"We are kind of nearing the debt ceiling in terms of our ability to (borrow through general) obligation bonds," Espaldon said. "When we start talking about water and sewer needs, pipes to be put in, I don't think (the federal government) has been much help along those lines for grants."
GovGuam's proposed roadway improvements alone amount to $1.5 billion, according to the GAO report.
Public Works Director Larry Perez said his office has been meeting with military officials weekly to discuss, on a case-by-case basis, which project improvements are driven primarily by needs presented by the buildup, and which ones would have been included as part of the DPW plans for improvements regardless of the buildup.
"We will go to the bond market for normal, organic growth," Perez said. He, too, said he didn't think it was right for Guam residents to pay for infrastructure impacts caused by the military.
The military buildup is expected to cause Guam's population to see growth in five years what it would normally take 20 years or longer to occur without the buildup, according to a previously released study for GovGuam to predict future mass transportation infrastructure.
"What normally would have taken 20 years ... (the military is) basically telling us to do now," Perez said.
For example, DPW wouldn't have planned to make drastic changes to Route 3, which sees little congestion or traffic, without the need posed by the buildup, Perez said.
Perez said there are road projects that already have federal funding commitments, including:
# $20 million a year though the Territorial Highway Program;
# $48 million from the Fiscal 2010 Defense Authorization Act for defense access road projects; and
# about $74 million in stimulus funds for other road projects.
The Port Authority of Guam, meanwhile, will receive $48 million under President Obama's economic stimulus funding.
But infrastructure improvements -- even if they are designed for military buildup-related growth -- will ultimately help boost the island's economy overall, said Carl Peterson, financial advisor at Money Resources Inc.
He said GovGuam can take on loans with the help of the federal government, and the interest can be paid with taxes, just as the GAO report suggests. With more people working and using local services, according to Peterson, more people will also pay taxes and other GovGuam fees for the services, so the local government can recoup some of the investments in infrastructure projects.
Thus, GovGuam officials should consider the military buildup projects as opportunities to generate revenue through taxes by implementing user fees for services, Peterson said.
"This is a bonanza for GovGuam and for the island," Peterson said of the buildup's economic gains.
"The biggest beneficiary will be the government, as long as they use it for services."
Buildup may use local utilities
Buildup may use local utilities
By Amritha Alladi • Pacific Daily News • November 19, 2009
The financial and logistical strains on labor, land use, water and power resources are among the most pressing military buildup concerns for Guam's industry leaders who attended the Guam Chamber of Commerce's annual meeting yesterday.
As of now, the Department of Defense will continue to be a customer of both the Guam Power Authority and Guam Waterworks Authority, according to Consolidated Commission on Utilities Chairman Simon Sanchez.
After yesterday's Chamber meeting, Frank Campillo, outgoing chairman of the Chamber's board of directors, said Guam's infrastructure is already having trouble with basic maintenance associated with the growth the island faces without the buildup.
"The roads are filled with potholes now," he said. He wants to know how Guam agencies, including the utilities, are going to handle further growth in demand for water and power.
Furthermore, Frank M. Crisostomo-Kaaihue, business developer for G4S Security Services, said he hopes the buildup doesn't deplete Guam's resources to the point where there is nothing left for future generations.
"It's important that our water, lands are not contaminated. That's the biggest concern. I want to make sure that my children's children still have a Guam," he said.
But Retired Marine Maj. Gen. David Bice, executive director of the Joint Guam Program Office, which oversees the buildup readiness for the Defense Department, said Guam will not shoulder the cost of buildup-related upgrades to local utilities alone.
The Defense Department already is discussing with Japan how to share some of the costs to pay for those improvements, Bice said.
He said DOD is a customer of the Guam Power Authority and wants to maintain that status. Plus, Sanchez said the power agency has the capacity to support the extra power needs that will be created by the shift of 8,000 Marines and their dependents from Okinawa to Guam.
Bice added that there is, however, a need to upgrade power facilities, for example, transmission and distribution lines from power plants in Dededo and Piti to the Apra Harbor.
Additionally, Sanchez said the Defense Department already is a customer of Guam Waterworks Authority and will continue to be for wastewater treatment services.
Bice said the Defense Department's preference is to upgrade the existing Northern Wastewater Treatment Plant.
The plant processes only about half of its 12 million-gallon capacity, according to GWA spokeswoman Heidi Ballendorf. But the capacity need will be increased to 18 million gallons once the buildup starts, Sanchez said.
Ballendorf said she expects improvements to the Northern Wastewater Treatment Plant will cost about $50 million, for which GWA does not have the funds.
"That has to come from the agreement with DOD going forward," she said.
According to Sanchez, the Defense Department is willing to cover all costs associated with the direct impact of its actions, but the improvements to GWA facilities will help improve the quality and help reduce the cost of utilities for Guam's civilians as well.
The issue of agreeing on an integrated solution for water still needs to be discussed between DOD and GWA.
GWA officials and some CCU members are scheduled to meet with JGPO officials today to discuss in detail what specific improvements will be needed to accommodate DOD's water and wastewater needs.
However, there is also the option of having stand-alone facilities, Bice added.
"We certainly want to make sure we support the move of Marines to Guam with the least impact on the people of Guam," Bice said.
The "preferred options" and alternatives are discussed extensively in Volume 10 of the draft Environmental Impact Statement, or EIS, which will be released on Saturday, Bice said.
The 8,000-page document will be available for public viewing at the public library, the University of Guam Robert F. Kennedy Memorial Library, and mayors' offices in Yigo, Dededo, Barrigada, Agat, and Mangilao, according to Capt. Neil Ruggiero, JGPO public affairs officer. Digital copies will be available online at the EIS, One Guam and Pacific Daily News Web sites.
Sen. Ben Pangelinan said JGPO officials had asked him for suggestions on where to place additional digital and hard copies of the draft EIS for public viewing. He suggested several shopping centers frequented by residents, and for JGPO to provide computers with Internet connection so people can read the report and do research.
"I am also somewhat perplexed that during all the planning and discussions on the (draft EIS) for the past several months which, in my opinion, were an important component to the process, we were never asked for any input. But for simple solutions as to location sites, our suggestions and ideas are valued."
Other residents have expressed similar dissatisfaction over the EIS study.
The Guåhan Coalition for Peace and Justice yesterday announced it would lead a protest at 4 p.m. tomorrow outside the ITC building in response to the release of the environmental report this weekend.
"It was not conducted in a manner that demonstrated a true assessment of the social, cultural, and political implications an increased military presence will have on the island's people," a release from the Coalition stated. "Local residents and their elected officials were largely excluded from the process of gathering information and making recommendations for this study."
Some of these issues the coalition is concerned about will also be addressed during the two-day conference on "The Military Buildup and Beyond" hosted by the Guam Legislature today and tomorrow.
Today, Roger M. Natsuhara, acting assistant secretary of the Navy for installations and environment, will give the keynote address at 9:05 a.m., with a question-and-answer session to follow. The morning session will include a panel discussion on family and community issues regarding public health and building a competent work force. After lunch, the conference will feature a presentation at 1 p.m. by Emanuel Mori, president of the Federated States of Micronesia. A panel discussion on the use of natural resources will follow at 1:30 p.m.
Tomorrow, Philippine Labor Undersecretary Romeo Lagman will present his government's perspective on the buildup. Lagman is expected to talk about how skilled workers from the Philippines could temporarily augment Guam's current labor pool for the buildup, according to a press release from the Guam Legislature.
The Guåhan Coalition's protest and the Legislature's conference are both open to the public.
By Amritha Alladi • Pacific Daily News • November 19, 2009
The financial and logistical strains on labor, land use, water and power resources are among the most pressing military buildup concerns for Guam's industry leaders who attended the Guam Chamber of Commerce's annual meeting yesterday.
As of now, the Department of Defense will continue to be a customer of both the Guam Power Authority and Guam Waterworks Authority, according to Consolidated Commission on Utilities Chairman Simon Sanchez.
After yesterday's Chamber meeting, Frank Campillo, outgoing chairman of the Chamber's board of directors, said Guam's infrastructure is already having trouble with basic maintenance associated with the growth the island faces without the buildup.
"The roads are filled with potholes now," he said. He wants to know how Guam agencies, including the utilities, are going to handle further growth in demand for water and power.
Furthermore, Frank M. Crisostomo-Kaaihue, business developer for G4S Security Services, said he hopes the buildup doesn't deplete Guam's resources to the point where there is nothing left for future generations.
"It's important that our water, lands are not contaminated. That's the biggest concern. I want to make sure that my children's children still have a Guam," he said.
But Retired Marine Maj. Gen. David Bice, executive director of the Joint Guam Program Office, which oversees the buildup readiness for the Defense Department, said Guam will not shoulder the cost of buildup-related upgrades to local utilities alone.
The Defense Department already is discussing with Japan how to share some of the costs to pay for those improvements, Bice said.
He said DOD is a customer of the Guam Power Authority and wants to maintain that status. Plus, Sanchez said the power agency has the capacity to support the extra power needs that will be created by the shift of 8,000 Marines and their dependents from Okinawa to Guam.
Bice added that there is, however, a need to upgrade power facilities, for example, transmission and distribution lines from power plants in Dededo and Piti to the Apra Harbor.
Additionally, Sanchez said the Defense Department already is a customer of Guam Waterworks Authority and will continue to be for wastewater treatment services.
Bice said the Defense Department's preference is to upgrade the existing Northern Wastewater Treatment Plant.
The plant processes only about half of its 12 million-gallon capacity, according to GWA spokeswoman Heidi Ballendorf. But the capacity need will be increased to 18 million gallons once the buildup starts, Sanchez said.
Ballendorf said she expects improvements to the Northern Wastewater Treatment Plant will cost about $50 million, for which GWA does not have the funds.
"That has to come from the agreement with DOD going forward," she said.
According to Sanchez, the Defense Department is willing to cover all costs associated with the direct impact of its actions, but the improvements to GWA facilities will help improve the quality and help reduce the cost of utilities for Guam's civilians as well.
The issue of agreeing on an integrated solution for water still needs to be discussed between DOD and GWA.
GWA officials and some CCU members are scheduled to meet with JGPO officials today to discuss in detail what specific improvements will be needed to accommodate DOD's water and wastewater needs.
However, there is also the option of having stand-alone facilities, Bice added.
"We certainly want to make sure we support the move of Marines to Guam with the least impact on the people of Guam," Bice said.
The "preferred options" and alternatives are discussed extensively in Volume 10 of the draft Environmental Impact Statement, or EIS, which will be released on Saturday, Bice said.
The 8,000-page document will be available for public viewing at the public library, the University of Guam Robert F. Kennedy Memorial Library, and mayors' offices in Yigo, Dededo, Barrigada, Agat, and Mangilao, according to Capt. Neil Ruggiero, JGPO public affairs officer. Digital copies will be available online at the EIS, One Guam and Pacific Daily News Web sites.
Sen. Ben Pangelinan said JGPO officials had asked him for suggestions on where to place additional digital and hard copies of the draft EIS for public viewing. He suggested several shopping centers frequented by residents, and for JGPO to provide computers with Internet connection so people can read the report and do research.
"I am also somewhat perplexed that during all the planning and discussions on the (draft EIS) for the past several months which, in my opinion, were an important component to the process, we were never asked for any input. But for simple solutions as to location sites, our suggestions and ideas are valued."
Other residents have expressed similar dissatisfaction over the EIS study.
The Guåhan Coalition for Peace and Justice yesterday announced it would lead a protest at 4 p.m. tomorrow outside the ITC building in response to the release of the environmental report this weekend.
"It was not conducted in a manner that demonstrated a true assessment of the social, cultural, and political implications an increased military presence will have on the island's people," a release from the Coalition stated. "Local residents and their elected officials were largely excluded from the process of gathering information and making recommendations for this study."
Some of these issues the coalition is concerned about will also be addressed during the two-day conference on "The Military Buildup and Beyond" hosted by the Guam Legislature today and tomorrow.
Today, Roger M. Natsuhara, acting assistant secretary of the Navy for installations and environment, will give the keynote address at 9:05 a.m., with a question-and-answer session to follow. The morning session will include a panel discussion on family and community issues regarding public health and building a competent work force. After lunch, the conference will feature a presentation at 1 p.m. by Emanuel Mori, president of the Federated States of Micronesia. A panel discussion on the use of natural resources will follow at 1:30 p.m.
Tomorrow, Philippine Labor Undersecretary Romeo Lagman will present his government's perspective on the buildup. Lagman is expected to talk about how skilled workers from the Philippines could temporarily augment Guam's current labor pool for the buildup, according to a press release from the Guam Legislature.
The Guåhan Coalition's protest and the Legislature's conference are both open to the public.
Monday, November 10, 2008
Guam Power Bills to Drop
Power bills to drop: Fuel surcharge rollback will take effect Dec. 1
By Bryan C. Sualog
Pacific Daily News
November 11, 2008
Guam Power Authority customers can look forward to lower power bills for at least the next few months.
The Public Utilities Commission unanimously voted to approve the Guam Power Authority's request to lower the Levelized Energy Adjustment Clause, or fuel surcharge, at a special meeting yesterday.
The surcharge, which makes up about two-thirds of power bills, was lowered from 18.775 cents per kilowatt-hour to 17.105 cents per kilowatt-hour.
The lower surcharge represents a 6.95-percent decrease in the total bill for an average customer.
"We're very pleased that they concurred with our recommendation," said Guam Power Authority General Manager Joaquin C. Flores.
The change effectively rolls back Guam's last increase. On Oct. 3, the fuel surcharge was increased from 17.044 cents per kilowatt-hour to 18.775 cents per kilowatt-hour.
The reduction will go into effect Dec. 1.
"Meters read after the first of December will enjoy the new rate," Flores said. "If you're consuming power and you're on or about the beginning of the month, when you get billed for December, then your consumption would be affected by this new rate decrease."
Flores said any break in prices would be helpful to ratepayers.
"It's about $16 to $17 for the average user," Flores said of the reduction.
Barrigada resident John Rosario said even though his power bill wasn't too bad, he was looking forward to a lower bill.
"Nowadays, every little thing to save money would be a big help," he said.
Rosario said he recently found out he needed to go to the Philippines for medical treatment., The money he will save from the fuel surcharge reduction would go toward his trip, he said.
Prior to the surcharge reduction, Rosario said he and his family implemented power-saving measures to save money, such as only turning on the air conditioner before they go to sleep and running the water heater for only one hour, at night.
"It's become a way of life now. It's easier for us," he said.
Rosario said he plans on continuing with the energy conservation practices to save even more money.
While some residents are excited and looking forward to the drop in their power bills, other residents aren't so optimistic.
Jaelene San Nicolas of Mangilao said she wasn't expecting much from the reduction because she expects the fuel surcharge will just go up again.
"I don't think it will help me. That's my point of view," she said.
Emergency filing
Normally, the LEAC is adjusted every six months, but in October, GPA received informal approval from the Consolidated Commission on Utilities to begin a petition to lower power rates because of the rapidly falling price of fuel.
Any changes in oil pricing that are $2 million over or under the cost of fuel recovery allows the power agency to approach the PUC on an emergency basis.
Flores said a filing would have to be submitted Dec. 15 for the next LEAC adjustment in February. He said the next adjustment would "depend on how prices behave and whether they stay below $75 a barrel."
Flores said if crude oil stays below $75 a barrel, ratepayers will be able to enjoy the decrease through February.
"I think we made it very clear that it would be a reduction, subject to oil prices staying where they're at."
GPA Spokesman Art Perez said GPA's Web site will be updated to reflect the reduction in the fuel surcharge. The Web site is:
www.guampowerauthority.com
"They can log on, see what that change is going to be and make that adjustment," he said. "That will be a welcome relief for everybody as we continue to monitor this."
The site's calculator should be updated by the end of the week, Perez said.
By Bryan C. Sualog
Pacific Daily News
November 11, 2008
Guam Power Authority customers can look forward to lower power bills for at least the next few months.
The Public Utilities Commission unanimously voted to approve the Guam Power Authority's request to lower the Levelized Energy Adjustment Clause, or fuel surcharge, at a special meeting yesterday.
The surcharge, which makes up about two-thirds of power bills, was lowered from 18.775 cents per kilowatt-hour to 17.105 cents per kilowatt-hour.
The lower surcharge represents a 6.95-percent decrease in the total bill for an average customer.
"We're very pleased that they concurred with our recommendation," said Guam Power Authority General Manager Joaquin C. Flores.
The change effectively rolls back Guam's last increase. On Oct. 3, the fuel surcharge was increased from 17.044 cents per kilowatt-hour to 18.775 cents per kilowatt-hour.
The reduction will go into effect Dec. 1.
"Meters read after the first of December will enjoy the new rate," Flores said. "If you're consuming power and you're on or about the beginning of the month, when you get billed for December, then your consumption would be affected by this new rate decrease."
Flores said any break in prices would be helpful to ratepayers.
"It's about $16 to $17 for the average user," Flores said of the reduction.
Barrigada resident John Rosario said even though his power bill wasn't too bad, he was looking forward to a lower bill.
"Nowadays, every little thing to save money would be a big help," he said.
Rosario said he recently found out he needed to go to the Philippines for medical treatment., The money he will save from the fuel surcharge reduction would go toward his trip, he said.
Prior to the surcharge reduction, Rosario said he and his family implemented power-saving measures to save money, such as only turning on the air conditioner before they go to sleep and running the water heater for only one hour, at night.
"It's become a way of life now. It's easier for us," he said.
Rosario said he plans on continuing with the energy conservation practices to save even more money.
While some residents are excited and looking forward to the drop in their power bills, other residents aren't so optimistic.
Jaelene San Nicolas of Mangilao said she wasn't expecting much from the reduction because she expects the fuel surcharge will just go up again.
"I don't think it will help me. That's my point of view," she said.
Emergency filing
Normally, the LEAC is adjusted every six months, but in October, GPA received informal approval from the Consolidated Commission on Utilities to begin a petition to lower power rates because of the rapidly falling price of fuel.
Any changes in oil pricing that are $2 million over or under the cost of fuel recovery allows the power agency to approach the PUC on an emergency basis.
Flores said a filing would have to be submitted Dec. 15 for the next LEAC adjustment in February. He said the next adjustment would "depend on how prices behave and whether they stay below $75 a barrel."
Flores said if crude oil stays below $75 a barrel, ratepayers will be able to enjoy the decrease through February.
"I think we made it very clear that it would be a reduction, subject to oil prices staying where they're at."
GPA Spokesman Art Perez said GPA's Web site will be updated to reflect the reduction in the fuel surcharge. The Web site is:
www.guampowerauthority.com
"They can log on, see what that change is going to be and make that adjustment," he said. "That will be a welcome relief for everybody as we continue to monitor this."
The site's calculator should be updated by the end of the week, Perez said.
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