The Guam Public Utilities Commission on Aug. 28 approved a three‑year financial rate plan for the Guam Solid Waste Authority that raises the monthly residential garbage fee to $35 for fiscal year 2026 and to $38 for fiscal year 2027, and establishes new special waste tipping fees.

PUC staff and consultants presented an ALJ report and supporting analyses from two consultants (MSW Consultants and Utility Financial Solutions). The record shows GSWA has run normalized operating deficits in fiscal years 2019–2024; consultants concluded current rates are insufficient to meet operating and capital needs. The ALJ recommended approval of a modest multi‑year increase and a true‑up proceeding in FY2027 to reassess revenues once mandatory islandwide collection begins.

PUC staff’s proposed order summarized the changes: a residential monthly rate increase from $30 to $35 (FY2026) and to $38 (FY2027); commercial and government tipping rates from $171.60 per ton to $190 (FY2026) and to $193 (FY2027); increases to residential transfer station charges; and several new special waste rates (contaminated soil, asbestos, fats/oils/greases, power poles, junk tires). The ALJ quantified the FY2026 revenue increase at roughly $3.2 million and projected a total increase through FY2027 of about $4.2 million after the second year increase.

GSWA general manager Slyke told the commission the agency must fund closure, post‑closure care and capital replacement, and that without increased revenues the authority may need to borrow for anticipated projects. He said the agency expects to spend about $11.3 million on post‑closure care and $900,000 on new cell development, among other capital needs; also noted was a projected $4.0 million cost to purchase approximately 40,000 new carts for mandatory collection (20,000 households × 2 carts each).

Consultant Utility Financial Solutions estimated the average cost of service per residential account at about $38.86, higher than the current $30 monthly charge. MSW audited historical deficits and forecasted continuing shortfalls if rates were not raised. To address equity for host communities, the ALJ recommended increasing the host community premium total from $300,000 to $350,000 for FY2026 (about $175,000 to each host village) while slightly reducing the per‑customer surcharge because of a larger customer base.

Commissioner discussion focused on timing relative to the new mandatory islandwide collection law (Guam Public Law 35‑46), the pace of implementation (staff estimated rollout of mandatory service not practicable until 2027), and a proposed FY2027 true‑up to reassess actual revenues and costs. After debate and clarification on multiple items including reserve funds and procurement of carts, a motion to approve the ALJ’s recommended order (with technical corrections to reflect a $3 increase in FY2027) passed unanimously.

The order retains PUC jurisdiction, authorizes an ALJ to manage implementation tasks, and schedules a rate true‑up in FY2027 to address any shortfalls once mandatory collection begins.

Votes at a glance:
- GSWA three‑year financial rate plan (docket 2404) — motion to approve ALJ proposed order including residential increases to $35 (FY2026) and $38 (FY2027); outcome: approved unanimously.

The PUC record includes consultant reports, public hearing summaries (staff reported largely supportive public comment though some criticized the magnitude of increases), and new special rates to cover disposal and handling costs for several categories of special waste.