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PUC conditionally authorizes Navy‑funded GPA overhaul work, asks GPA to file IGSA and full cost breakdown
Summary
The PUC conditionally authorized GPA to proceed with Navy‑funded repairs and overhauls to the Navy/Arodi power plant, including off‑island repairs to a fire‑damaged unit, contingent on GPA filing the finalized IGSA, memorandum of record and a clarified total cost; Navy had transferred $2.734 million to date.
PUC staff reviewed GPA docket 2605 and told commissioners that GPA notified the commission of a significant increase in repair and overhaul work at the Navy‑affiliated Arodi power plant after a fire damaged unit #2. The work includes off‑island repairs (estimated to require shipment of parts to the Philippines), generator rewinding and overhaul work to units one and three that the OEM recommended to avoid additional fires.
Under paragraph 2 of the PUC contract review protocol, projects funded and reimbursed by Navy via an Intergovernmental Services Agreement do not require the full prior contract review, but GPA must file three items with the PUC (a governing‑body resolution authorizing the contract, an affidavit that the project will not increase rates, and a narrative description). The ALJ noted that GPA had submitted required materials but that the record lacked a clear consolidated total cost. The ALJ therefore recommended conditional approval pending submission of the finalized IGSA, a memorandum of record and an explanation of total project costs.
After the ALJ report, staff updated commissioners that Navy has already transferred $2.734 million to GPA and plans additional transfers (about $1 million in FY2026 and $2 million in FY2027) to cover the overhaul and repair work. Commissioners questioned timelines (estimated four to nine months per generator depending on the unit) and asked whether island capacity would be affected during repairs; GPA staff said the island system has sufficient capacity (citing roughly 400 MW of capacity since a recent unit came online) and that Navy will provide written authorization and funds before work begins.
The commission voted to conditionally approve GPA proceeding with the Navy contract, subject to GPA filing the completed IGSA, memorandum of record, and a clarified total cost, and to submit completed contract documents to the PUC when available. The motion passed unanimously.
