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PUC lowers LIAC factor; GPA customers to see bill reductions for Feb–July 2025
Summary
The PUC approved Guam Power Authority’s petition to reduce the Levelized Energy Adjustment Clause for Feb. 1–July 31, 2025, lowering the LIAC factor to 0.208802 per kWh and delivering estimated bill relief to customers while leaving a mechanism to adjust future periods.
The Guam Public Utilities Commission on Jan. 30 voted to reduce the Levelized Energy Adjustment Clause (LIAC) for the Guam Power Authority to 0.208802 per kilowatt‑hour for the period Feb. 1 through July 31, 2025, approving GPA’s petition and accepting the ALJ’s recommendation.
PUC staff and the ALJ summarized GPA’s petition, which cited a marked decline in fuel prices and a fall in GPA’s fuel‑expense under‑recovery balance. GPA estimated an under‑recovery balance of about $4.285 million as of Jan. 31, 2025, down from an earlier high of roughly $33 million. The ALJ reviewed updated pricing, consultant analysis from Marianas Consulting Group and Morgan Stanley fuel indications, and recommended the commission adopt GPA’s requested reduction rather than a higher alternate factor proposed by the consultant.
The ALJ noted the consultant estimated a fully recovering LIAC would be about 0.219673 per kWh (almost 22¢) and that approving GPA’s lower requested figure could produce a projected under‑recovery of roughly $6.7 million for the period, a level the ALJ and GPA said GPA could manage. The ALJ cited recent short‑term fuel price declines and GPA’s expectation that early availability of power from the new Ookodu plant would further reduce fuel costs.
GPA General Manager John Benevente told the commission that the utility supports the requested factor and emphasized the policy choice to provide rate relief now and recover any remaining under‑recovery in future LIAC periods when additional capacity comes online. The ALJ noted sample customer class calculations showing the reduction will cut the LIAC portion for an average residential customer by about 20.3% and lower the total bill by about 14.8% under the approved factor.
Commissioner Pete moved approval; the motion was seconded and carried unanimously. The PUC’s order includes standard reporting language directing GPA to continue monthly updates of fuel cost estimates and to provide actual pricing as it becomes available.
The commission and staff also discussed the historical LIAC trend and emergency risk remedies: if under‑recovery rises unexpectedly, the LIAC can be adjusted in a subsequent period.
