Senator Thomas Ada Proposes New Finance Agency to Fund Guam’s LED Streetlight Upgrade Home News

Senator Thomas Ada Proposes New Finance Agency to Fund Guam’s LED Streetlight Upgrade

Guam Senator Thomas Ada, who belongs to the U.S. ruling Democrat party, has proposed a new bill to establish the Guam Streetlight Financing Authority to fund the island’s replacement of some 15,000 incandescent streetlights to LED, according to an article by Pacific News Center. Ada’s stated the obtainment of US$ 16 million funding would be required to replace the island streetlights. Below is the senator office’s press release posted on Pacific News Center website:



                      (Guam Senator Thomas Ada. (Photo Courtesy of The Office of Senator Thomas Ada))

Senator Tom Ada Introduces Bill to Create the Guam Streetlight Financing Authority

On Friday, November 22, 2013, Senator Tom Ada and Senator Rory Respicio introduced Bill 227-32, An Act to Create the Guam Streetlight Authority, a special purpose entity (SPE) with the sole purpose of financing the conversion of Guam’s incandescent streetlights to more energy efficient LED streetlights. Currently, the Department of Public Works (DPW) is responsible for ensuring that Guam’s highways and village streets are properly lit, and DPW pays GPA approximately US$ 6.4 million annually to keep the 15,000 streetlights lit throughout the island.

Ada states that, “this SPE, the Guam Streetlight Authority, is a creative approach to obtaining approximately US$16 million of financing to replace Guam’s 15,000 incandescent streetlight inventory with the more energy-efficient LED alternative.” Respicio added, “the conversion to LEDs will result in an estimated 54 percent reduction in energy costs and savings to Guam’s taxpayers.”

From the savings, the debt can be repaid and an additional 1,000 streetlights for all the villages can be purchased,” added Ada. This of course will require that GovGuam continues to appropriate the same amount of funds over the life of the debt, about 12-years, until the debt is paid off. The conversion of 15,000 streetlights throughout the island is expected to take about two (2) years.

Based on recommendations from an energy efficiency study undertaken, the Consolidated Commission on Utilities (CCU), GPA’s governing Board, and the Department of Public Works have determined that it is in the best interest of the Territory to replace all streetlights on Guam with the energy-efficient LED streetlights. Ada states, “the streetlight conversion initiative will not result in a rate increase for GPA’s ratepayers”.

Creation of the Guam Streetlight Authority will not entail any administrative costs for personnel or operations. Three commissioners of the Consolidated Commission on Utilities will constitute the three-member Board of Directors to manage the entity. The General Manager, Chief Financial Officer, Executive Secretary and Attorney of the Guam Power Authority will serve in the same capacity (ex-officio) to the Guam Streetlight Authority.

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