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Guam Power Authority. Committing to Prudent Fuel Use: GPA’s Process to Reduce Fuel Expenses. 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. What is LEAC?.

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Presentation Transcript
guam power authority
Guam Power Authority

Committing to Prudent Fuel Use:

GPA’s Process to Reduce Fuel Expenses

Guam Power Authority


24th Annual PPA Conference


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

what is leac
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

gpa in a tight spot
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

growth in under recovery of fuel expenses
Growth in Under-Recoveryof Fuel Expenses

Prior to CCU

Base Load


Right On Track

Guam Power Authority

gpa puc collaboration
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

ensuring prudent management
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

qmp prudent fuel use
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

qmp cost effective reduction of unaccounted for energy
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

qmp ensuring leac plan performance goals
QMP: Ensuring LEAC Plan Performance Goals
  • LEAC / Prudent Use Fuel Use Process
  • LEAC Implementation Process
  • Control Charts

Guam Power Authority

qms prudent fuel use
QMS: Prudent Fuel Use

Guam Power Authority

fuel use performance chart
Fuel Use Performance Chart

Guam Power Authority

gpa today tomorrow
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