The adjusted fuel recovery charge set to take effect July 1 means residential customers will see an increase in their monthly power bill of about $58, officials from the Guam Power Authority (GPA) said, noting the approval for the power hike came from the Public Utilities Commission (PUC).

Both the Consolidated Commission on Utilities (CCU) and the PUC approved the adjustment of the Levelized Energy Adjustment Clause (LEAC) from $0.135840 per kilowatt-hour to $0.194150 per kilowatt-hour for meters read on or after July 1, 2026, through January 31, 2027.

“We understand that customers are concerned about any increase to their monthly bills,” GPA General Manager John Benavente said. “This adjustment is not intended to recover the full projected fuel under-recovery at once. It is intended to keep that balance from growing while helping ensure GPA can continue purchasing fuel and spread fuel cost impacts over time, rather than asking customers to absorb a larger increase all at once.”

Prior to the approval, the PUC reviewed the several options available to GPA to address the fuel under-recovery. According to GPA the PUC noted that a full recovery approach would have resulted in a higher LEAC rate and monthly power bills for the average residential customer.

"Leaving the LEAC unchanged would have allowed the fuel under-recovery to grow significantly, creating greater pressure on GPA’s ability to purchase fuel and increasing the risk of larger impacts in future LEAC periods," GPA said in a June 25 statement.

GPA described the approved fuel recovery charge as the "middle" approach, "bringing fuel recovery closer to actual costs while spreading fuel cost impacts over time."

Despite the LEAC adjustment, based on a regional rate comparison as of May 15, 2026, GPA reported its combined base and fuel surcharge rates at approximately 32 cents per kilowatt-hour "remain among the lowest rates in the region."

GPA explained that fuel shipment costs saw a sharp increase tied to recent geopolitical conflicts and reported spending $26.2 million in March on fuel shipment costs. April spiked to about $53.5 million before decreasing to about $37.9 million in May.

"GPA has worked to lessen the impact of global fuel volatility by holding the LEAC steady since March, managing fuel purchases carefully, evaluating alternative fuel supply options, applying available Ukudu liquidated damages to GPA’s fuel under-recovery balance, relying on the Ukudu Power Plant’s efficiency, and using available solar energy to reduce the amount of fuel needed to serve customers," GPA said.

GPA has taken steps to reduce the impact on residential customers, including applying Ukudu liquidated damages directly to the LEAC under-recovery balance and securing approval for a short-term line of credit to support fuel purchases during this elevated price period.

With the summer months bringing warmer weather, GPA encouraged customers to look for ways to reduce daily energy consumption, especially from air conditioning and water heating.

"Using ceiling fans to help circulate cool air, setting air conditioners between 75°F and 77°F, installing a water heater timer, and turning off lights and appliances when not in use can help customers better manage their monthly bills" GPA said.

GPA also reminded customers that they could monitor usage, review consumption patterns, and identify ways to save at MyEnergyGuam.com.