Placeholder image

Rates | Base Rate Case FAQ

Village Meeting Issue #13 Response

Issue #13: GPA is experiencing cost savings due to cuts in personnel, yet its labor costs remains constant

The budget law for FY2005 (P.L.27-106) fully restored all GovGuam employees’ step increases and subsequent budget laws have not reinstated the freeze on increments. Hence, salaries and wages increased by nearly $2m. Prior to FY2005 the increase in labor can be attributed to the ongoing typhoon restorations/repairs and the implementation of the apprenticeship program in 2004. The following is a schedule of apprenticeship program expenditures since inception:

Table 1 – Apprenticeship Program Expenditures (since inception)

Although GPA received some reimbursements for apprentice hours worked and some benefits, all leave taken by apprentices and other benefits are fully absorbed by GPA. Reimbursements amount to less than 50% of the total costs.

Increases in the labor costs can also be attributed to the increase in the Government share of employee benefits. Each fiscal year the government’s share for the unfunded retirement liability increases by approximately 1% summarized as follows:

Table 2 – Summary of Government’s Share of Unfunded Retirement Liability

In addition to increases in the government’s share in retirement contributions, the government’s share of the health & dental insurance premiums increased an average of 12% over the 3 classes of employees in FY06.

Related Links

Ratepayers' Bill of Rights (12 GCA, Chapter 12, § 12001.1 - § 12001.2, and § 12016)

Public Law No 26-23 Download 28 kb pdf

Access the section of the Guam Code Annotated from the Supreme Court of Guam Compiler of Laws pertaining to the Ratepayers' Bill of Rights - updated through P.L. 29-001 (April 2, 2007)
12 GCA , Chapter 12 (Public Utilities Commission and the Guam Telecommunications Act of 2004)
Consolidated Commission on Utilities (CCU)

Public Utilities Commission (PUC)