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Guam Power Authority

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  1. Guam Power Authority Committing to Prudent Fuel Use: GPA’s Process to Reduce Fuel Expenses Guam Power Authority

  2. 24th Annual PPA Conference Presenters John J. Cruz Jr., P.E. Jennifer G. Sablan Lorraine O. Shinohara, P.E. Barbara C. Cruz, P.E. Henry Pilayan Joyce N. Sayama, MBA

  3. What is LEAC? • Levelized Energy Adjustment Clause • Mechanism to recover actual fuel costs • 6 Month Rate Period • PUC Approval Required • Allows for variance true-up during rate period from LEAC period projections Guam Power Authority

  4. GPA In a Tight Spot • Non-Collection of Major Customers • Poor Reliability due to Deterioration of Plant and T&D Equipment • Funds diverted for Typhoon Recoveries (Chata’an & Pongsona) • ~$13 Million of under-recovered fuel expense Guam Power Authority

  5. Growth in Under-Recoveryof Fuel Expenses Prior to CCU Base Load Repair Right On Track Guam Power Authority

  6. GPA & PUC Collaboration • GPA requests to recover fuel costs for LEAC periods in FY00-FY02 • PUC initially objects to recovery of funds due to prior imprudent management • GPA presents plan to rehabilitate plants and develop performance standards for recovery efforts • PUC allows recovery efforts based on GPA meeting satisfactory performance of prudent fuel use Guam Power Authority

  7. Ensuring Prudent Management • Quality Management Plan for Prudent Fuel Use • Quality Management Plan for the Cost-Effective Reduction of Unaccounted for Energy • Quality Management System for Ensuring LEAC Plan Performance Goals Guam Power Authority

  8. QMP: Prudent Fuel Use • System Operation Performance Standards • Baseload (90%) vs. Diesel (10%) Production • Heat Rate • Equivalent Availability Factor • Implementing PMC Contract for Cabras 3&4 Power Plant Guam Power Authority

  9. QMP: Cost-Effective Reduction of Unaccounted for Energy • Identifying Losses • Meter errors • Line Losses • GPA Own-use • Billing Errors • Identifying large recovery with quick & least cost efforts • Implementing Task Forces Guam Power Authority

  10. QMP: Ensuring LEAC Plan Performance Goals • LEAC / Prudent Use Fuel Use Process • LEAC Implementation Process • Control Charts Guam Power Authority

  11. QMS: Prudent Fuel Use Guam Power Authority

  12. LEAC/Prudent Fuel Use Implementation Process Guam Power Authority

  13. Guam Power Authority

  14. Fuel Use Performance Chart Guam Power Authority

  15. Guam Power Authority

  16. GPA Today & Tomorrow • GPA focusing on plant improvements for efficiency, reliability and availability • Diesel Unit operations are minimal • Outage scheduling/planning and implementation are well coordinated • GPA has evolving and working processes to ensure cost effective production for GPA customers Guam Power Authority