PUC approves four‑month extension for Capris 1 & 2 performance management contract

5805047 · September 21, 2025

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Summary

The PUC granted a four‑month extension of the performance management contract for the aging Cabras 1 and 2 power plant units to Jan. 31, 2026, to allow continued operation while GPA finalizes the new plant commercial operations and burns remaining low‑sulfur fuel.

The Guam Public Utilities Commission on Aug. 28 approved a four‑month extension of the performance management contract (PMC) for Cabras Units 1 and 2, extending the incumbent operator’s management term through Jan. 31, 2026.

PUC legal staff reviewed the reasoning for the extension: Cabras 1 and 2 are older generation units that require significant maintenance; spare parts are often custom and outages can be prolonged. GPA and PUC staff said the extension would allow Cabras to remain available while GPA completes testing and commercial operation of the new plant (Ookodoo) and to consume remaining low‑sulfur fuel oil inventory rather than incur disposal or extra handling costs. The extension was negotiated as a four‑month amendment, with a management fee and reimbursable O&M expenses (the extension’s incremental cost was presented as about $1.4 million total: ~$1.0M fixed management fee plus ~$0.4M reimbursable O&M).

The PUC record notes the U.S. EPA previously authorized emergency or temporary continued operation of Cabras through March 31, 2026 if necessary; the requested four‑month extension (to Jan. 31, 2026) is within that maximum period. The ALJ and PUC legal review found the cost reasonable given the units’ age, operational risk and the need to avoid operational disruptions should the new plant’s commercial operation be delayed. Commissioners approved the contract amendment by unanimous vote.

Votes at a glance: - Extension of Cabras Units 1 & 2 PMC through Jan. 31, 2026 (docket 2517) — motion to approve contract amendment for four months; outcome: approved unanimously.

PUC staff directed GPA to continue coordination with the EPA and to provide status updates on fuel consumption and commissioning progress for the new plant.