Two senators are urging the Guam Power Authority and the Consolidated Commission on Utilities to use millions of dollars in liquidated damages tied to delays at the Ukudu power plant to provide immediate relief to ratepayers.
Sen. Jesse A. Lujan and Sen. Christopher M. Dueñas said about $16.8 million should be directed toward offsetting potential increases to the Levelized Energy Adjustment Clause, or LEAC, which affects customers’ power bills.
The lawmakers said the funds stem from roughly $22 million in damages assessed against the contractor responsible for the delayed delivery of the Ukudu Power Plant. Public reporting indicates the damages include $7.44 million for October, $7.2 million for November and $7.44 million for December.
According to the senators, the Guam Power Authority also owes the contractor about $5.2 million for electricity generated during testing between Sept. 30 and Christmas, which helped prevent load shedding while the plant’s full commissioning was delayed. After accounting for that payment, they said about $16.8 million remains that could be used to ease costs for consumers.
“This is about putting ratepayers first,” Lujan said in a statement, noting that Guam families and businesses are already facing rising energy costs.
The senators also pointed to recent increases in fuel prices, which they said are placing additional financial pressure on residents.
Dueñas said applying the recovered damages toward ratepayer relief would be a fiscally responsible option at a time when broader government assistance may not be available.
“This is not only fair, it is fiscally prudent,” Dueñas said, adding that the funds represent real dollars already assessed rather than projected savings.
The lawmakers said they are asking the Consolidated Commission on Utilities and GPA to commit to applying any recovered damages from the Ukudu delay — after contractual obligations are met — toward offsetting potential LEAC increases.