Power Credits are on Session Agenda, vote in Legislature next week

UPDATE: The $100 Power Credit Bill Is Moving Toward a Decision

Håfa Adai everyone

Thank you again to everyone who signed this petition.

We are reaching an important point. The Legislature is continuing deliberations next week over what to do with approximately $19.885 million in additional Section 30 revenues. The Governor’s special session is scheduled to reconvene Monday, October 5, and the competing Section 30 proposals like funding the power credit are on the regular session agenda.

There are several proposals competing for essentially the same pot of money. Each addresses a legitimate public need, and I think everyone deserves to understand the choice being made.

Bill 356-38, $100 Power Credits: This bill would appropriate $16.8 million to GPA to provide three monthly $100 credits to customers. The advantage is straightforward: it provides immediate relief directly on people's power bills using a program Guam has already administered several times. The tradeoff is that the credits are temporary. They help households with today's bills, but they do not by themselves reduce the underlying cost of generating electricity or permanently lower future power rates.

Bill 358-38, Simon Sanchez High School: This bill would put the full $19,885,394 into a Simon Sanchez High School Modernization Fund and reduce the amount the government is authorized to finance for the new school by the same amount. BBMR's analysis says the authorized principal would fall from approximately $166.4 million to $146.5 million. The tradeoff is that  GovGuam would still need to finance and procure  Simon Sanchez project.  So the money will not address the primary cause of delay, procurement.

Bill 1 (11-S), GMH Electronic Health Records and UOG Fadian Hatchery: The Governor's proposal would use the entire $19,885,394, with $15,885,394 for GMH's electronic health record system and $4 million for UOG's Blue Economy Innovation Center at the Fadian Hatchery. GMH has identified serious problems with the EHR system it procured several years ago and need a  whole new system.  A modern system could improve access to patient information, billing and revenue collection. The UOG portion is intended to develop aquaculture, food production and Guam's blue economy. The tradeoff is that the GMH system still has to go through procurement, so the final market price is not yet known though estimates are  $60-$100 million. 

This is ultimately a question of priorities: immediate household relief, reducing the long-term financing cost of a new high school,, or investments in hospital technology and aquaculture.

If you continue to believe that the excess Section 30 money should be used for $100 power credits, contact your senators before the Legislature makes its decision and tell them that you support Bill 356-38. If, after considering the alternatives, you prefer another use, tell them that as well.

Nearly $20 million is about to be committed. Guam residents should have a voice in where it goes.