The Guam Public Utilities Commission (PUC) convened on June 26, 2025, to discuss significant adjustments to the Levelized Energy Adjustment Clause (LEAC) factor, which directly impacts electricity rates for consumers. The meeting highlighted a proposal from the Guam Power Authority (GPA) to implement a two-step reduction in the LEAC factor, aimed at lowering costs for residents amid fluctuating fuel prices.

The GPA's initial request sought to decrease the LEAC factor from 20.8802 cents per kilowatt hour to 18.8781 cents for August 2025, followed by a further reduction to 13.584 cents starting September 2025 through January 2026. This proposal was based on a notable 14% decrease in fuel prices, with projections indicating an average fuel cost of $89.93 per barrel for the upcoming period, down from $100.01.

However, the PUC, supported by a report from Marianas Consulting Group (MCG), recommended a single, consolidated reduction of the LEAC factor to 15.5495 cents per kilowatt hour for the entire six-month period. This approach, according to MCG, aligns better with the intent of the LEAC program and avoids the complications of multiple rate changes within a short timeframe. The proposed adjustment would result in a 25.53% decrease in the LEAC factor and a 17.4% reduction in overall bills for average residential customers.

The rationale for a single adjustment stems from the need for stability in energy pricing, especially given the volatility of fuel markets. The PUC emphasized that a consistent rate over six months would better serve consumers and reflect the historical practices of the LEAC program. Furthermore, the anticipated operational launch of the Ukadu power plant in September 2025, which is expected to enhance efficiency and reduce fuel consumption, was also noted as a contributing factor to the proposed reductions.

In conclusion, the PUC's decision to adopt MCG's recommendation aims to provide immediate relief to consumers while maintaining a framework that allows for future adjustments if fuel prices fluctuate significantly. The anticipated changes are set to take effect on August 1, 2025, marking a proactive step towards managing energy costs in Guam amidst ongoing global fuel market uncertainties.