The Consolidated Commission on Utilities has approved the Guam Power Authority’s request to reduce the Levelized Energy Adjustment Clause rate to 13.584 cents per kilowatt-hour, effective Jan. 1 through July 31, 2026. The reduction reflects updated fuel price projections and anticipated system efficiency improvements aimed at managing fuel-related costs for residents and businesses.
Despite the lower LEAC, GPA said the combined effect of a proposed base rate adjustment and the CCU-recommended reduction would result in a nominal net increase of about $8.12 for the average residential customer using 1,000 kilowatt-hours per month. The estimate remains subject to review and approval by the Public Utilities Commission, with GPA seeking concurrent implementation so customers receive the benefit of lower fuel costs at the same time any base rate changes take effect.
GPA continues to rely on its older Cabras generators longer than planned due to delays in the Ukudu Power Plant, driving fuel costs higher during the second half of 2025. The utility projects an under-recovery of $14.5 million by the end of the year, which it intends to offset through liquidated damages and other cost-saving measures. GPA said achieving a net-zero impact on customer bills may take more than one LEAC cycle.
Even with the challenges, GPA reported significant savings from LEAC reductions earlier this year, lowering the typical residential bill by more than $106 per month and resulting in nearly $1,000 in cumulative savings since January. Once fully online, the Ukudu Power Plant is expected to cut annual fuel use by more than 900,000 barrels.