THE Guam Power Authority’s submitted budget for Fiscal Year 2013 – which included about $447 million of projected operating expenses – was reviewed and passed during the Consolidated Commission on Utilities meeting held last night.
During the meeting, GPA also reported projected revenues of about $485 million going into the FY2013 budget.
Out of the FY2013 budget, around $43 million has been allocated for debt service cost, while around $14 million has been allotted for revenue-funded capital improvement projects.
GPA Communications Manager Art Perez said CCU approved the allocation for the CIP projects, which will cover a range of power generation, transmission and distribution enhancements.
The hybrid project in the village of Agat, several substation improvements all around the island, including fuel oil pipeline improvements, are just several CIPs covered by the FY2013 budget.
“You see these pipelines running from Cabras Island up to Nimitz Hill, parts of Sinajaña, and Chalan Pågo. We want to make sure these lines are well-maintained for environmental protection and also for the protection of our fuel line,” Perez stated.
In addition to the 568 budgeted positions for 2013, the budget has an allotment for the 24 newly recruited personnel under the GPA apprenticeship program who commenced their on-the-job training with the power utility this week.
“We are doing that because we want to continue that program to fill critical vacant positions in GPA,” Perez said.
The CCU also approved the $316.5 million budgeted by GPA to cover fuel costs. The amount represents a big chunk of GPA’s forecasted revenue.
To improve fuel efficiency, GPA has been exploring the use of liquefied natural gas, or LNG, as a possible fuel alternative.
“This fiscal year we are also completing our LNG study. We expect to finish that. So when the study is complete, we can go out for an RFP for scope, scale, and timelines because it takes about five to seven years to commission this project. In addition to securing the funding, it is a pretty substantial investment,” Perez said.
