Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Fuel Storage Pipeline topic
No spam. Unsubscribe anytime.
PUC approves one-year extension of GPA contracts with TriStar for RFO pipeline and storage; fees rise about 5%
Summary
The PUC granted a one-year extension of Guam Power Authority’s pipeline and residual fuel oil (RFO) storage agreements with TriStar Terminal Guam Inc., approving fee increases of about 5% and finding the extensions prudent and necessary to maintain fuel supply until planned unit retirements.
The Guam Public Utilities Commission unanimously approved on May 20 a one-year extension of two Guam Power Authority agreements with TriStar Terminal Guam Inc. — a pipeline use agreement and an RFO storage lease — with fee increases of about 5 percent over current rates.
An Administrative Law Judge report presented to the commission recommended approval, finding the extensions necessary and prudent to preserve an uninterrupted fuel-oil supply to GPA generation facilities while GPA completes unit retirements and related transitions.
Under the storage agreement, TriStar provides GPA with roughly 422,000 barrels of residual fuel oil storage at the Agat (Agate) Terminal. The ALJ’s review shows the current pipeline annual fee carried forward from prior amendments was about $566,000; the proposed one-year extension would raise the pipeline fees to about $594,667 annually (approximately $49,555 per month). The extended RFO storage fee would increase to about $2,000,000 annually with an additional plant‑delivery fee estimated at $656,000, producing total RFO-related costs of about $2,687,000 for the year.
The CCU authorized GPA to request PUC approval for the extensions; the ALJ report noted TriStar represents the sole service provider for these pipeline and storage services and that GPA indicated the contracts may terminate earlier if GPA’s retirement of CAPRIS 1 and CAPRIS 2 proceeds as projected. GPA’s engineering responses estimate retiring CAPRIS 1 and CAPRIS 2 by March 31, 2026; once those units are retired, GPA expects to phase out the RFO agreements and project annual savings of roughly $2.3 million.
GPA’s John discussed the broader operational transition, noting that commissioning of the Okudu plant and related milestones influence fuel supply needs and that some storage and pipeline uses will remain for ultra-low-sulfur diesel even after residual fuel oil needs decline. Commissioners asked and received clarification that the extension is terminable by GPA if conditions change before the August 2026 scheduled end date.
The PUC record shows the fee increases reflect TriStar’s stated increases in labor and materials costs. The ALJ recommended approval on grounds that interruptions to the fuel distribution system could threaten public health, welfare and safety by jeopardizing electricity supply.
A motion to approve the contract extension (GPA docket 2511) passed unanimously.
PUC staff will monitor GPA’s schedule for retiring CAPRIS 1 and CAPRIS 2 and the planned phase-out of RFO-related contracts once retirement occurs.
