Guam Power Authority
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Guam Power Authority. Infrastructure Project Needs Assessment. The Guam community is …. An American community A showcase for diversity and democracy firmly rooted in the American tradition Called to become the point of the spear that defends our country’s interests in the Western Pacific
Guam Power Authority
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Presentation Transcript
Guam Power Authority Infrastructure Project Needs Assessment
The Guam community is … • An American community • A showcase for diversity and democracy firmly rooted in the American tradition • Called to become the point of the spear that defends our country’s interests in the Western Pacific • Proud to be called
Guam’s Sons and Daughters .. • Have served, bled and died for our country; upholding the highest traditions of military service • Will continue to serve proudly; so very proudly • Are still answering the Call to serve: • “The US military says recruitment in its affiliated Pacific Island territories is still strong despite suffering the highest number of casualties per capita in the Iraq war. “ • Guam is sixth highest among states and territories in Iraq War casualties per capita.
Our Biggest Fears • Creation of a segregated community: an American state divided into those behind and those outside the fence • Non-participation in the economic opportunities brought by the impending military buildup • Reversal of the transfer of Department of the Navy (DON/DOD) electric power assets to Guam under the Customer Services Agreement • Loss of DON/DOD as a customer
Best Sense • Best economic sense: • An integrated approach to serving the needs of both the military and the supporting civilian communities • Best operational sense: • Civilian community actively engaged and supporting the military mission • Supplying the infrastructure as in any other American community.
Participating in the Preparation • Guam Power Authority and Water Utilities are raising their rates to improve the quality of service • Commitment: • Tens of millions of dollars each year • Hundreds of millions over the next decade
Impediments • Capital Funding Gap; • Information Gap: • Planning information; • Information on the required levels of service for the military mission; • Increased infrastructure development costs
Capital Funding Gap • Congress cannot reasonably expect a community the size of Guam to fund the necessary capital outlays • In other American communities, developments of this magnitude would likely require the following from the developer: • Development fees for local planning • Capital development funding • Close cooperation with local government
Information Gap • Guam needs information in order to adequately plan for augmenting and improving infrastructure • Guam is being put at a disadvantage • We are being asked to plan, prepare, and perform to an unknown standard
Rising Development Cost • Magnitude of Department of Defense projects increasing construction costs • Costs are rising for all infrastructure additions • Exacerbates the strain on local resources
Loss of DON/DOD as a Customer • If Guam Power Authority should lose the Department of the Navy/Defense as a customer, it will result in a 15% rate increase on the remaining rate base
Guam is … • An American community expected to • Prepare and provide for a massive buildup supporting the broadcast of American influence into the Western Pacific and Asia • A community that • Supports this role • Expects to share in the economic and infrastructure benefits • Should not be excluded outside the fence
Generation System Reliability Improvement and New Supply Projects
Transmission & Distribution System Reliability Improvement Projects
