As the start of the new fiscal year is only days away, ratepayers can brace for a spike in their water bills come this October. This after the Public Utilities Commission approved an 11.5% increase beginning in FY2025. 

As water rates are expected to go up through 2029, how much of that is due to the U.S. Navy’s hike in its water costs to the Guam Waterworks Authority?

Commissioner Simon Sanchez brought up that question during Wednesday's Consolidated Commission on Utilities meeting. 

“Almost half of this rate increase is due to the result that the Navy has raised their cost of water from Fena by 8 million dollars a year,” said Sanchez. 

Sanchez argued that even if rate increases stay the same, without factoring in the Navy’s increase in water sales, the money collected from rate increases could be saved, contending this would provide future savings for ratepayers by using $38 million over the next five years, which won’t have to be borrowed or incur interest.

“Miguel’s original plan was well thought out–it said, I want to put 100 million from rates into paying for things out of cash flow then out of borrowing with interest…and that’s a plan we accepted so far, and it made sense. The Navy just took out 38 million from that 100 million,” added Sanchez. 

And while GWA General Manager Miguel Bordallo said talks with the Navy to adjust water costs seem favorable, CCU Chair Joseph Duenas argued rates still won’t decrease. 

“I don’t want to give our ratepayers the information or the perception that if somehow we resolve this positively for ourselves and our ratepayers, that all of a sudden we can reduce this first-year rate increase–it’s not going to be reduced because we still need this money, I just want to make sure we’re clear on that,” said Duenas. 

Duenas added unanticipated expenses are set to be addressed in a “true-up” moving forward with next rate increases. 

Meantime, Bordallo said discussions with the Navy have left him confident that the handling of issues like these will improve in the future.