Two Guam senators are urging Guam Power Authority and the Consolidated Commission on Utilities to use money paid to the government after delays at the Ukudu Power Plant to offset consumer power expenses.
Sens. Jesse Lujan and Chris Dueñas say $16.8 million in damages tied to the late delivery of the Ukudu power plant should be used to offset potential increases in the Levelized Energy Adjustment Clause, or LEAC, the highest part of a power bill.
GPA collected about $22 million in damages collected from contractor delays in the plant.
The agency owes the contractor $5.2 million for energy provided during the plant’s testing phase from Sept. 30 through Christmas.
That leaves $16.8 million that could be used to offset higher fuel prices, the senators said.
“Guam families are getting squeezed from every direction, and they do not need more talk about savings that might show up months from now," Lujan said in a news release announcing the proposal. "This is money in the bank today, not money that may be realized at the end of the fiscal year. If relief is truly the priority, then these dollars should be used now to help the people paying the bills.”
Dueñas, who chairs the finance and government operations committee, said the move would not only be fair, it would be fiscally prudent.
“It is one of the few available options that can provide direct relief to consumers without creating false expectations. In the past, the Legislature has at times been able to provide broader relief through direct appropriations for ratepayer power credits," he said. "Today, however, Adelup has taken the position that excess revenues have already been spent.”