The LEAC is the GPA Levelized Energy Adjustment Clause.
About two-thirds of GPA's budget is made up of items such as debt service, maintenance, labor, insurance and other costs that are reasonably predictable and estimable. One third of GPA's budget is expended on fuel costs which are highly susceptible to wide market fluctuations. Because of this, GPA's power rates have two major components: a fixed base rate and a variable fuel rate.
Prior to 1999, GPA reset its fuel rate on a monthly basis to reflect current market conditions. In 1999, GPA adopted the LEAC to enable fuel costs to be set on a bi-annual basis. The LEAC allows sharp market price fluctuations to be spread over a six month period. It also provides increased consistency to customer bills.
Every six months a schedule of fuel costs is provided to the Public Utilities Commission to enable the LEAC rate to be reset. Any under recovery or over recovery is trued up during the review process. In the event that GPA's fuel forecasts indicate an under recovery exceeding $2 million, it is allowed to petition for an adjustment before the expiration of the LEAC period - Updated:October 1, 2005
The CCU is the Consolidated Commission on Utilities. It was created by Public Law 26-76. It is made up of five members elected to oversee the Guam Power Authority and the Guam Waterworks Authority. The CCU retains contracting authority for both utilities as well as the responsibility for selecting a qualified General Manager and Chief Financial Officer. www.ccuguam.com - Updated:October 1, 2005