The Guam Public Utilities Commission voted unanimously on Oct. 30 to approve Guam Power Authority's recommended award of a Phase 4 60‑megawatt renewable power purchase agreement to PRG CTI (CoreTech) for a 25‑year term.
ALJ Kenton and counsel presented an analysis showing a total 25‑year contract cost of roughly $548.6 million and a bid price within the established cap. The report said the REPA is commercially reasonable, includes a 1% annual escalation (compounded), and contains battery energy‑shifting capacity. Counsel said GPA's analysis indicates the REPA would reduce fuel use by about 144,000 barrels of oil per year and could lower annual LEAC costs by an estimated $15.8 million in one oil‑price scenario.
Commissioners asked detailed questions about guaranteed annual net generation, minimum production requirements, escalation mechanics, and interconnection. GPA staff and others explained that the REPA requires the seller to deliver generated energy (buyer pays for generation if produced) and that minimum annual production guarantees carry penalties if not met. Commissioners also asked about a map showing three contiguous sites for the proposed solar layout; GWA and GPA said permitting, easements and interconnection remain outstanding and that an environmental impact statement and archaeology study are part of the permit process.
GWA raised a specific operational issue: an existing active water line in the footprint of the proposed solar site near the Northern Wastewater Treatment Plant. GWA staff said they will request that the developer avoid placing panels over the active water line and that GPA should ensure access and non‑conflicting siting. The motion approved by the PUC included a planning condition and the explicit direction that panels not be installed over active water lines, and it passed unanimously.
The ALJ and counsel framed the award as advancing the statutory renewable target under Public Law 29‑62 and found the contract prudent and necessary for GPA's transition planning.