The Guam Public Utilities Commission (PUC) convened on June 26, 2025, to discuss the Guam Waterworks Authority's (GWA) petition for the issuance of revenue bonds aimed at funding critical infrastructure projects. The proposed bond issuance, which could reach up to $350 million, is intended to support the construction, improvement, maintenance, and repair of GWA's water and wastewater systems, as mandated by court orders and federal regulations.

GWA's petition, filed on June 6, outlines that the bond proceeds will primarily finance capital improvement projects necessary for compliance with regulatory enforcement actions, including a consent decree with the U.S. Environmental Protection Agency. The total amount sought from the bond issuance is approximately $274.9 million, although this figure may increase depending on market interest rates.

The PUC reviewed the financial implications of the bond issuance, noting that the average total interest cost is projected at 5.14%. GWA plans to defer principal payments for the first five years, allowing for interest-only payments during this period. This approach aims to ensure that the proposed rate increases will adequately cover debt service costs.

The commission also highlighted the importance of addressing water loss control and contamination issues, with significant allocations of the capital improvement plan dedicated to these areas. Approximately 39.7% of the funding is earmarked for projects related to compliance with the 2011 court order and the 2024 partial consent decree, while 22.6% is allocated for water loss control initiatives.

In addition to the bond issuance, the PUC discussed the necessity of updating existing bond indentures to reflect current financing programs and requirements. The commission is set to review the true-up of rates in September, which will further clarify the financial landscape for GWA and its ratepayers.

In conclusion, the PUC recommended the approval of GWA's petition for the bond issuance, emphasizing the legislative backing and the critical nature of the proposed projects for Guam's water and wastewater infrastructure. The commission's decision is expected to facilitate timely improvements and compliance with regulatory standards, ultimately benefiting the community.