Frequently Asked Questions: Understanding the PUC-Approved Base Rate Adjustment and LEAC Changes

1. What did the PUC approve?

The Public Utilities Commission (PUC) approved new base rates and a reduction to the LEAC for GPA, with both changes taking effect together on January 1, 2026, following its review of the record and the Administrative Law Judge’s (ALJ) findings.

2. Will customer bills go up?

For the average residential customer using about 1,000 kilowatt-hours per month, the combined impact of the approved base rate adjustment and LEAC reduction results in a nominal increase of approximately $8 per month beginning January 2026.

This follows two significant LEAC reductions implemented earlier in 2025, which lowered fuel charges and delivered savings sooner than originally proposed. When viewed on an annual basis compared to January 2025 rates, average residential customers are still projected to realize approximately $1,200 in net savings, reflecting fuel reductions already received and continued efficiency gains.

3. Why does it look like bills are increasing now if customers already saved earlier?

Two fuel charge (LEAC) reductions were approved and implemented earlier in 2025, delivering savings to customers sooner than originally proposed. Because those savings occurred first, the base rate adjustment now appears as a nominal increase when the two changes take effect together. Customers end up in the same overall cost position GPA proposed with the rate adjustments, saving approximately $1,200 compared to January 2025 rates.

4. How much have customers already saved?

The typical residential customer has saved nearly $1,000 cumulatively since January 2025, ahead of the commissioning of the Ukudu Power Plant, even while GPA continued operating higher-cost generation at Cabras during the delayed commissioning period.

5. How does the final decision compare to what GPA proposed?

GPA’s proposal would have resulted in approximately $1,200 in net annual savings compared to January 2025 rates. Although some rates were adjusted by the PUC, the net annual savings remains the same for average residential customers.

6. Why is a base rate adjustment needed?

The base rate supports long-term investments in modern, efficient generation and system reliability. These investments reduce dependence on fuel, lower exposure to fuel price volatility, and support more stable customers’ bills over time.

7. What role does the Ukudu Power Plant play in this?

Ukudu is a new, modern combined-cycle power plant representing an investment of approximately $600 million and is expected to reduce fuel use by more than 900,000 barrels per year once fully commissioned. Customers are already benefiting from this investment without paying more for it, receiving the value of a new power plant while overall bills are lower than they were a year ago.

8. Why did the PUC adjust commercial and government rates?

Based on findings from the PUC’s ALJ and its consultant, the PUC determined that adjustments were needed to better align commercial and government rate schedules with the true cost of service, ensuring each customer class pays rates that more accurately reflect the cost to serve them.|

9. Will the LEAC change again in the future?

Yes. The Fuel Recover Charge or LEAC is reviewed twice each year and adjusts up or down based on actual fuel costs and system conditions. It is designed to be a flexible, self-correcting mechanism.

As GPA brings more efficient generation online and reduces Guam’s dependence on imported fuel, the LEAC is expected to become lower and more stable over time, helping protect customers from volatile global oil prices.

10. Where can customers get more information or assistance?

Customers may contact GPA Customer Service at (671) 647-5787, visit www.guampowerauthority.com, or follow GPA on Facebook and Instagram for updates and information.