Guam News - Guam News

Guam - The Public Utilities Commission has approved the Guam Power Authority’s petition to execute a Utilities Services Contract (USC) with GPA’s largest customer – the U.S. Navy. The USC replaces a prior Customer Service Agreement between GPA and the U.S. Navy that expired this past July after 20 years.

Annually, GPA supplies over 360 Giga Watt Hours of energy to the U.S. military on Guam. This is equivalent to approximately $70M in annual revenues for the Authority. Over the 10-year contract term, the value of this contract has the potential to exceed $700M.  Having such a revenue stream contributes to the cost of providing service to all GPA customers.  By paying their fair share, the U.S. Navy contributes to overall cost of power that would have otherwise been significantly higher for all if they were not a customer.

Of equal significance, the USC asserts GPA as the sole provider of power service for the island. The process of converting the Navy into a GPA customer started with the original Customer Service Agreement and includes the transfer of major power system assets owned by the Navy to GPA. These assets include substations, transmission & distribution lines, and generation facilities. “GPA will take ownership of over 16 miles of fuel oil lines as well as over 100 miles of easements for utility use purposes once all environmental concerns have been resolved.” stated Joaquin C. Flores, P.E., GPA General Manager.

“Over the next ten years, the USC will provide service benefits to the Island Wide Power System with a constant source of revenue and will allow Navy to continue to contribute system improvements to critical joint use assets for operational flexibility to better service all our customers.  Flores remarked, “This agreement highlights the confidence the U.S. Navy has that GPA will continue to provide reliable power service for their operational and mission needs - we are very happy to have reached this agreement with our largest single customer.”

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