Guam Bill 166 enacted in March 2008, established a renewable energy portfolio goal of 25% renewable energy by 2035.* Under this law, each utility that sells electricity for consumption on Guam must establish a renewable portfolio goal according to the following schedule:
5% of net electricity sales by December 31, 2015
8% of net electricity sales by December 31, 2020
10% of net electricity sales by December 31, 2025
15% of net electricity sales by December 31, 2030
25% of net electricity sales by December 31, 2035
Additionally, any permit issued for the construction of a base load electrical generation plant must include a requirement that 10% of total generation capacity must come from "alternative" energy sources. The production of alternative energy generation in these plants must also be brought on line at the same time as production from traditional sources. It should be noted that Guam Power Authority (GPA) is the only power utility on Guam.
Cost Mitigation Measures
This bill authorizes the Guam Public Utilities Commission (PUC) to issue recommendations for the implementation of a utility rate structure designed to reward and encourage consumers to use renewable energy and ensure that utilities' profit margins do not decrease for a period of five years following implementation of this rate structure. The PUC is also charged with designing incentive proposals and further legislation which could be offered to encourage utilities to meet the renewable portfolio goal. Information regarding the PUC's progress on these issues is unavailable.
* A renewable portfolio goal generally is not legally binding, as opposed to a renewable portfolio standard, which is legally binding.