PUC approves five‑year Tristar tank lease extension despite ALJ calling price "exorbitant"

The Guam Public Utilities Commission unanimously approved GPA’s petition to enter amendment No. 5 with Tristar Terminal Guam to extend storage of low‑sulfur diesel for an additional term at a total projected cost of $7.5 million.

In his report, the ALJ reviewed historical extensions and refurbishment delays to GPA‑owned tanks and said he initially recommended denial because $7.5 million appeared "exorbitant." The ALJ concluded, however, that the extension was likely recoverable through fuel‑price savings and necessary because tank 1934 remains out of service and without the Tristar lease GPA would face constrained storage capacity. "Although the cost is not reasonable, it is probably recoverable," the ALJ said, and recommended approval with a requirement that GPA report back on the feasibility of constructing additional on‑island storage.

GPA staff and commissioners discussed alternatives, including a shorter-term extension, potential buyers for the legacy fuel in tank 1934, and the importance of geographic redundancy: the Tristar tank is at a higher elevation and farther inland than GPA’s coastal tanks, reducing exposure to coastal hazards.

Commissioners asked GPA to return with a report within six months addressing whether building its own storage or other strategies would be more feasible. Commissioner Peter moved to approve the amendment, a second was recorded, and the motion carried unanimously.

The commission’s order includes the ALJ’s analysis and a reporting requirement for GPA on storage strategy and the exercise of lease options.