Sen. Will Parkinson has introduced legislation to extend energy power credits for Guam residents as fuel prices rise and officials anticipate potential increases in the Levelized Energy Adjustment Clause, or LEAC, portion of power bills.
Parkinson said the measure would continue a power credit program previously used to provide direct relief to households during periods of high energy costs.
“Working families on Guam are about to feel the shock of rising global fuel prices again,” Parkinson said in a statement. “When energy costs surge, it does not just affect the pump or the power bill. It ripples through the entire economy.”
The proposal comes amid global energy uncertainty tied to disruptions in oil markets following developments in the Middle East. Parkinson said Guam’s fuel supply chain is particularly vulnerable because most of the island’s fuel is imported from refineries in Singapore that rely heavily on crude oil from the Persian Gulf.
He cited the indefinite closure of the Strait of Hormuz — a major global oil shipping route — as a factor expected to drive prices higher.
“Guam is uniquely exposed to global energy disruptions,” Parkinson said. “When the Strait of Hormuz closes, the consequences reach all the way to the Pacific.”
Unlike most U.S. jurisdictions, Guam does not have direct access to domestic energy supplies and instead relies on imported fuel from the Asia-Pacific market.
Parkinson also pointed to the government’s latest Consolidated Revenue and Expenditure Report, which shows the Government of Guam collected about $38.9 million in excess revenues during the first four months of the fiscal year.
“When the government collects more revenue than expected while families are struggling with the cost of living, there is a moral obligation to return that surplus to the people,” Parkinson said.
The senator said the legislation aims to provide financial stability for residents if global fuel volatility leads to higher electricity costs in the coming months.