The Public Utilities Commission has approved new base rates for the Guam Power Authority along with a reduction to the Levelized Energy Adjustment Clause, with both changes taking effect Jan. 1, 2026, according to a release issued Monday.
The PUC said the base rate adjustment is necessary to support long-term investments in modern generation, maintain system reliability and ensure financial stability as fuel-related charges decline. While GPA submitted proposed rates, the commission said the final rates reflect its independent review and determinations as required by law.
For the average residential customer using 1,000 kilowatt-hours per month, the combined timing of the base rate adjustment and LEAC reduction will result in a nominal increase of about $10 per month beginning in January. The PUC noted, however, that customers received fuel savings earlier than anticipated through two LEAC reductions implemented in 2025.
According to the release, typical residential customers have saved about $1,000 cumulatively since January 2025, even as GPA relied on higher-cost generation during delays in commissioning the Ukudu Power Plant. Once fully online, the plant is expected to reduce fuel consumption by more than 900,000 barrels per year, helping stabilize costs. The PUC’s order also includes continued oversight to ensure accountability and transparency in GPA’s financial and operational performance.