The Guam Power Authority (GPA) said they are moving forward with the long-term capital improvement planning to address the current Island-Wide Power System needs and future energy demand growth by strengthening the system.
The announcement by GPA follows a recent public hearing on Bill 345-38 which would approve the terms and conditions for GPA to issue up to $375 million in revenue bonds, in one or more series, to finance capital improvements to the Island-Wide Power System.
"Under the bill, proceeds may be used for certain energy storage, generation, transmission and distribution projects and other capital improvements," GPA said in the release.
This is in anticipation of Guam's energy needs to grow from 270 megawatts to 300 megawatts by 2029. Though the long-term goal for 2029 is for system capacity to reach 600 megawatts. According to GPA this is to meet demand while "maintaining sufficient reserves when individual generating units are unavailable."
“Our mission is to provide reliable and affordable electricity to the people of Guam on a sustained basis,” GPA General Manager John Benavente said. “We are addressing the system’s immediate needs, but we also have a responsibility to plan ahead. Making deliberate investments before aging infrastructure, customer growth or a major storm forces emergency action puts GPA in a better position to manage both reliability and costs over the long term.”
GPA said that Super Typhoon Sinlaku and Bavi highlighted the importance of strengthening critical infrastructure as both storms resulted in $10.3 million in revenue expenses and losses.
The CIP projects include significant transmission and distribution investments, including underground infrastructure, as well as rehabilitation of existing generating units, substation and relay improvements, facility upgrades and other system needs, according to GPA.
GPA is also seeking funding from the federal government to harden critical infrastructure complementing the bond financing and other available resources.
"GPA intends to pursue these investments with continued prudent fiscal management and careful consideration of the impact on ratepayers. GPA’s intention is to pursue the financing without increasing utility rates. Financing long-lived infrastructure over time allows costs to be spread across its useful life rather than impacting today’s customers or being addressed under emergency conditions," GPA said.
GPA acknowledged that if any bond issuance has a potential impact on rates, the Consolidated Commission on Utilities and the Public Utilities Commission will need to review and provide written approval before progressing.