Presented byJohn M. Benavente, P.E.

General Manager, Consolidated Utilities Services

PRESENTATION TOPRESENTATION TO

GUAM CONTRACTOR’S ASSOCIATIONGUAM CONTRACTOR’S ASSOCIATION

Update On GPA & GWA

GPA Today:

Professional, Vibrant, Aggressive Utility Baseload Energy Production : 93 – 97% GovGuam Paying Their Bills Working Capital Increasing : $12M to $20M Excellent Management Team Trained Employees Thinking out of the Box Labor cost : 12 % of Budget

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Year 1973 1978 1983 1988 1993 1998 2003 2008 2013

INSTALLED CAPACITY (MW)

RELIABILITY RESERVE

HistoricalPeaks (MW)

ProjectedPeaks (MW)

Install Additional Capacity

5% Growth

3% Growth

4%

2010

20112013

FEMA Underground Projects

GPA Underground Projects Planned Finish Funding Estimate (x $1,000)

Tumon 34.5 kV & 13.8 kV Underground Conversion Phase II Jun-04

P401 Underground Conversion to Guam Memorial Hospital FY' 06 FEMA 90%, GPA 10% 1,200

P003 Underground Conversion to GPA Cabras Facilities FY' 06 FEMA 90%, GPA 10% 700

Harmon to Tumon 34.5 kV Underground Conversion FY' 06 FEMA 90%, GPA 10% 2,960

Tamuning to Tumon 34.5 kV Underground Conversion FY' 06 FEMA 90%, GPA 10% 2,480

San Vitores to Macheche 34.5 kV Underground Conversion FY '07 FEMA 90%, GPA 10% 3,520

Harmon to Tanguisson 34.5 kV Underground Conversion FY '07 FEMA 90%, GPA 10% 3,550

Macheche to GAA 34.5 kV Underground Conversion FY '07 FEMA 90%, GPA 10% 1,510

Agana to Tamuning and P202 Underground Conversion FY '07 FEMA 90%, GPA 10% 3,240

TOTAL INVESTMENT 19,160

Tumon Beautification Bond Funds

GPA FY’06 Capital Improvement ProjectsCCU Approved (08/09/05)

ITEM DESCRIPTION SECTION/ FY2006 CCUDIVISION APPROVED

1 Security Camera at Dededo Warehouse Facilities $40,000.00

1 Heavy equipment overhead Shelter with crane Transportation $150,000.002 Install fire protection system Transportation $50,000.003 Construct rear lot with asphalt pavement Transportation $112,000.004 Bucket Trucks 35ft 2ea Transportation $280,000.005 Bucket Trucks 45ft 1ea Transportation $160,000.006 Bucket Trucks 55ft 1ea Transportation $180,000.007 Forklift 3 Ton for warehouse (2) Transportation $79,826.008 Raytheon bucket truck purchase Transportation $480,000.009 Electric Vehicles - for SPORD Transportation $29,000.00

10 4x4 Utility truck w/reg cab, "Hydraulic Lift" & towing pack- WSD Transportation $65,000.00

1 Sea Water Air Conditioning Design Phase SPORD $250,000.002 Network Upgrade (lot) SPORD $194,696.00

GPA FY’06 Capital Improvement ProjectsCU Approved (08/09/05)– Cont.

ITEM DESCRIPTION SECTION/ FY2006 CCUDIVISION APPROVED

1 Concrete Storage Facility PSCC $40,000.002 New 25 Ton Water Chiller (back-up) Unit PSCC $45,000.003 New SCADA EMS System PSCC $1,000,000.004 VHF Radio (replace push-to-talk radio with VHF radio) PSCC $80,000.00

1 Fire Protection upgrades @ Various Plants GEN ADMIN $250,000.002 Cabras 3&4 - 750 KW Generator Installation GEN ADMIN $150,000.003 Cabras SPCC Building Construction GEN ADMIN $80,000.00

1 Mark V Installation Dededo CT 1 & 2 CT $380,000.002 Repair/Replace/Upgrade Ct CT $750,000.00

1 Agana Power Plant Renovation Water System $65,000.00

1 Insulator Washer-High Pressure/Trailer mtd w/access Overhead $82,000.00

1Automatic Voltage Regulator Retrofit. Solid State/Digital Devices-SCADA Interface. Load Tap Changer Repair. Substation $100,000.00

2 Radiator Upgrades for Substation Power Transformers. Substation $100,000.003 SF-6 Circuit Breakers Replacements (FY-05 carry overs). Substation $110,000.004 SF-6 Circuit Breakers Replacements (Funding to cover FY-05). Substation $125,000.00

FY 2005 - FY 2010 (x $1,000)

* * * Complete Project List * * *

Priority Capital Improvement Project Name StatusProjectType Reason FY04 FY05

ProjectTotal

ICS Notification System Upgrade / Fuel Switching and Metering Construction Generation Legal 590

Harmon 115/34.5 KV Substation Expansion Construction Transmission Loading 55

Harmon Substation Protection System Upgrade Construction Substation Reliability 990

Merizo U/G Relocation Design Distribution Legal 125 145

U/G Reconstruction-Sinajana Phase I Design Distribution Reliability 150 90

1 Cabras 4 (Boat Ramp) Design Generation Legal 400 400 2,658

2 Bulk Storage Tank Life Extension Construction Generation Legal 1,220 2,000 7,020

3 Repair Condenser Inlet/Outlet Lines at Cabras 1 & 2 Construction Generation Reliability 1,800 580 3,000

4 Upgrade Monitoring Equipment for Water Quality Construction Generation Reliability 250 600 850

5 USN Fuel Oil Pipeline Assessment and Upgrade Design Generation Reliability 50 50 300

6 Spill Containment at Various Plants Design Generation Reliability 200 350

7 Boiler Control Upgrade for Cabras 1 & 2 Planned Generation Reliability 300 1,300

8 Cabras Miscellaneous Projects Planned Generation Reliability 248 248

9 Marbo to Pagat 34.5 KV Line Design Transmission Reliability 3,172 3,225

10 Upgrade Barrigada to Talofofo 34.5 KV Line Construction Transmission Loading 33 1,080 1,900

GPA Engineering Capital Improvement Projects(CIP)

FY 2005 - FY 2010 (x $1,000)

* * * Complete Project List * * *

11 Construction of 115 kV Tower Maintenance Road (Phase II) Construction Transmission Reliability 1,660 700 2,596

12 Agana T-9 18 MVA Power Transformer Upgrade Construction Substation Loading 40 20 60

13 Harmon T-21 30 MVA Power Transformer Upgrade Construction Substation Loading 40 20 60

14 Harmon to Tumon 34. 5 kV Underground Conversion-FEMA Design Transmission Reliability 1,331 2,662

15 Harmon to Tumon 34. 5 kV Underground Conversion-GPA Design Transmission Reliability 14 134 296

16 Harmon to Tumon Underbuilt Conversion - Civil Work Design Distribution Reliability 222 1,108

17 Tamuning to Tumon 34.5 kV Underground Conversion-FEMA Design Transmission Reliability 876 1,751

18 Tamuning to Tumon 34.5 kV Underground Conversion-GPA Design Transmission Reliability 9 115 248

19 Tamuning to Tumon Underbuilt Conversion - Civil Work Design Distribution Reliability 151 756

20 P401 Underground Conversion to Memorial Hospital-FEMA Design Distribution Reliability 225 409 1,080

21 P401 Underground Conversion to Memorial Hospital-GPA Design Distribution Reliability 25 45 120

22 P003 Underground Conversion to Cabras-FEMA Design Distribution Reliability 315 630

23 P003 Underground Conversion to Cabras-GPA Design Distribution Reliability 6 29 70

24 Underground Fuel Pipeline at NAS Construction Generation Safety 350 400 1,050

25 Talofofo Power Plant Improvements Construction Generation Reliability 250 250

GPA Engineering Capital Improvement Projects(CIP)

FY 2005 - FY 2010 (x $1,000)

* * * Complete Project List * * *

25 Talofofo Power Plant Improvements Construction Generation Reliability 250 250

26 Substation and Distribution Capacitor Program Construction Substation Loading 630 150 980

27 San Vitores to Rotunda Xtm & Dist Underground Lines Construction Distribution Reliability 276 379 655

28 Relay Coordination Study Planned Substation Reliability 200 200

29 Merizo U/G Relocation Construction Distribution Legal 125 65 190

30 Islandwide Asset Assessment & Database Management Construction Distribution Reliability 350 350

31 34.5 kV Transmission Line Along Rt. 2A Design Transmission Reliability 735 980

32 San Vitores to Macheche 34.5 kV Underground Conversion-FEMA Planned Transmission Reliability 634 3,170

33 San Vitores to Macheche 34.5 kV Underground Conversion-GPA Planned Transmission Reliability 71 352

34 San Vitores to Macheche Underbuilt Conversion - Civil Work Planned Distribution Reliability 312 1,559

35 Harmon to Tanguisson 34.5 kV Underground Conversion-FEMA Planned Transmission Reliability 640 3,196

36 Harmon to Tanguisson 34.5 kV Underground Conversion-GPA Planned Transmission Reliability 71 355

37 Harmon to Tanguisson Underbuilt Conversion - Civil Work Planned Distribution Reliability 170 851

38 Macheche to GAA 34.5 kV Underground Conversion-FEMA Planned Transmission Reliability 271 1,357

39 Macheche to GAA 34.5 kV Underground Conversion-GPA Planned Transmission Reliability 31 151

40 Macheche to GAA Underbuilt Conversion - Civil Work Planned Distribution Reliability 124 618

41 Agana to Tamuning and P202 Underground Conversion-FEMA Planned Distribution Reliability 582 2,912

42 Agana to Tamuning and P202 Underground Conversion-GPA Planned Distribution Reliability 65 324

43 Umatac Substation Drainage Modification -FEMA Planned Substation Reliability 40 81

44 Umatac Substation Drainage Modification -GPA Planned Substation Reliability 4 8

GPA Engineering Capital Improvement Projects(CIP)

Totals:

Totals:

ALL PROJECTS

REVENUE FUNDED PROJECTS

BOND FUNDED PROJECTS

EXTERNALLY FUNDED PROJECTS

Totals:

Totals: $1,790 $3,613 $5,403

$9,063 $18,776 $27,839

$7,048 $10,065 $17,113

$225 $5,098 $5,323

FY 2005 - FY 2010 (x $1,000)

* * * Complete Project List * * *

GPA Engineering Capital Improvement Projects(CIP)

GWA Today: Position of Strength

Water Shifting has ceased Lifting of Boil Water Notices Reduction of Operating Expenses Certification of Waste Water Operators Addressing Financial Obligations Expected to be Profitable in FY2005 Entering Bond Market by December Compliance With Drinking Water Standards Strong Management Team

Rebuilding GWA is Rebuilding GWA is underwayunderway

GWA Capital Improvement Projects 2005 Revenue Bond

Report No. PROJECT DESCRIPTION AmountWastewater Treatment Facilities

1 Agana Wastewater Treatment Plant Rehabilitation 10,475,000$ 2 Agana WTP Ocean Outfall 5,030,000$ 3 Northern District WTP Ocean Outfall 4,700,000$ 4 Baza Gardens Wastewater Treatment Plant Upgrade 500,000$

Subtotals 20,705,000$ Wastewater Collection Facilities

7 Old Agat Wastewater Collection (I&I Reduction) 2,154,900$ 8 Chaot 36-inch Wastewater Collector Line 410,000$ 9 Lift Station Upgrades 230,000$

10 Collection Line Upgrades 200,000$

Subtotals 2,994,900$ Ground Water Production/Disinfection

15 Deep Well Disinfection 581,300$ 16 Well Electrical Protection 1,000,000$ 17 Well Vulnerability Protection 600,000$

Subtotals 2,181,300$

GWA Capital Improvement Projects

2005 Revenue Bond (Cont.)

Report No. PROJECT DESCRIPTION AmountWater Distribution and Storage

19 Distribution Line Replacement 10,000,000$ 20 A Series Wells Transmission Line 2,413,031$ 21 Santa Rita Booster and Transmission Line 647,876$ 23 Storage Additions 950,000$ 24 Booster Station Upgrades 390,000$ 25 Mangilao Tank Repair 800,000$ 26 Ugum Tank Replacement and Repair 2,500,000$ 27 Barrigada Tank Replacement 3,000,000$

Subtotals 20,700,907$ Efficiency Upgrades

30 Earthtech Buyout 5,000,000$ 32 Water Resources Master Plan 4,900,000$ 33 Lab Modernization 840,000$

Subtotals 10,740,000$ Miscellaneous

39 Survey 800,000$ 41 Contingency 5,000,000$

Subtotals 5,800,000$ TOTALS 63,122,107$

GWA FY 06 Revenue RequirementCCU BOARD APPROVED (8-23-05)

Description FY 06 FY 07 FY 08 FY 09 FY 10

Total Cash Generated 10,393,001$ 12,755,435$ 14,300,362$ 15,586,602$ 19,946,805$ Revenue Funded CIP (6,502,930) (11,000,000) (12,500,000) (14,200,000) (12,050,000) Grant Funded CIP (4,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) Principal Payments - - (1,289,000) (1,367,500) (2,919,522) Payments to GPA/Navy (2,287,071) (2,373,262) (2,463,056) (2,556,609) (2,654,082) PY Supp payment/Inc (Dec) Working Cap (100,000) (100,000) (100,000) (100,000) (100,000) O&M, Renovation, Replacement Reserve (2,000,000) (2,000,000) (2,000,000) (2,000,000) - Cap I Fund 5,522,000 6,024,000 6,292,000 6,864,000 0 Inventory Purchases (1,000,000) (1,000,000) - - -

Change in Cash (Deficiency/Surplus) 25,000$ 306,172$ 240,305$ 226,493$ 223,201$

Total CIP's 10,502,930$ 13,000,000$ 14,500,000$ 16,200,000$ 14,050,000$

Project Types: Village Distribution UpgradesGeneral Plant Equipment & ImprovementsSystem Reliability Improvements

Public Private Partnership

Public Private Partnership

$28,782,906.62

$6,140,356.55$5,128,868.32

$7,247,931.68

$4,687,760.00

$-$5,000,000.00

$10,000,000.00$15,000,000.00$20,000,000.00$25,000,000.00$30,000,000.00

MEC TEMESCT

Pruvient TEMESPMC

Doosan

IPP/PMC Annual Fees

Contract Fees:

Public Private Partnership

Historical Vs. Post PMC PerformanceCabras 1&2 Equivalent Availability Factor

82.32%

67.03%

45.43% 44.34%

63.34% 68.72%

74.10%

82.06%

87.00%

69.80%

39.24%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

95 96 97 98 99 00 01 02 03 04 05

Fiscal / Contract Year

Post PMC

Target Line = 83%

Cabras Power PlantsHistorical Vs. Post PMC Performance

$4,626,840.36

$6,546,408.78

$12,245,212.35

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

2003 2004 2005

Contract Year

Cabras 1&2 Annual Savings

Availability

Efficiency

Total

Public Private PartnershipHistorical Vs. Post PMC Performance

Cabras 3&4 Equivalent Availability Factor

82.17%

48.87%

13.57%

69.27%

95.59%

63.95%

39.81%

88.58%89.78%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

97 98 99 00 01 02 03 04 05

Fiscal / Contract Year

PMC

Target Line = 93%

Public Private Partnership

Historical Vs. Post PMC Performance

$4,120,290.00

$2,482,860.00

$3,797,970.00

$699,190.00

$11,100,310.00

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

O&MSpending

FTEReduction

Availability Efficiency Total

PMC Cabras 3&4 Projected Savings

Public Private Partnership

Procurement of Materials & Services Personnel Management Management of Capital Improvement Projects

(SCADA System, Station Upgrades) Inventory Management

(Standardization, Identifying Critical Spares, Restocking Triggers)

Environmental Compliance Training Development (Succession Plans,

Apprenticeship Programs) Performance Standards

PMC Responsibilities

Public Private Partnership

Develop Maintenance Program SOP Implement Maintenance Management System Financing Reporting / Record Keeping Root Cause Analysis Performance Testing Assist in Developing Quality Management

Plans/Systems

PMC Additional Responsibilities

GWA Model:

Recommendation (11/17/05) CCU Deliberation PUC Approval

Future Challenges

Future Challenges:GPA - Employment

608

666 678 668626

565 578 589537

510521

0

100

200

300

400

500

600

700

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Fiscal Year

Future Challenges:

(1) 2004 (2) 2005 (3) 2006 (4) 2007 (5) 2008 (6) 2009 (7) 2010 (8) 2011 (9) 2012 (10) 1013 (11) 2014

0123456789

10

1 2 3 4 5 6 7 8 9 10 11

BY AGE

BY SERVICE

YEAR

BY SERVICE BY AGE TOTAL YEAR

BY SERVICE BY AGE TOTAL

2004 1 4 5 2010 1 2 3

2005 1 2 3 2011 1 2 3

2006 0 4 4 2012 4 5 9

2007 0 2 2 2013 0 3 3

2008 1 3 4 2014 4 1 5

2009 0 3 3

21 23TOTAL = TOTAL =

Eligible Retirees - GPA Administration

(1) 2004 (2) 2005 (3) 2006 (4) 2007 (5) 2008 (6) 2009 (7) 2010 (8) 2011 (9) 2012 (10) 1013 (11) 2014

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10 11

BY AGE

BY SERVICE

YEAR

BY SERVICE BY AGE TOTAL YEAR

BY SERVICE BY AGE TOTAL

2004 5 21 26 2010 3 5 8

2005 0 3 3 2011 4 6 10

2006 1 5 6 2012 13 3 16

2007 1 9 10 2013 8 5 13

2008 3 7 10 2014 4 8 12

2009 5 3 8

63 59TOTAL = TOTAL =

Future Challenges:

Eligible Retirees - GPA Operations

GPA - Recruitment Analysis

0

20

40

60

80

100

120

140

FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005

Promotions

New Hires

Resignations

Retirement

FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005Promotions 4 13 78 125 21 38 18New Hires 3 17 50 63 26 57 16Resignations 34 32 31 37 70 35 6Retirement 18 51 5 12 14 13 0

TOTAL NO. OF EMPLOYEES 626 565 578 589 537 510 521

Future Challenges:

Future Challenges:

GWA – Employees Year of Service

5

17 21

74

13

57

33

0

10

20

30

40

50

60

70

80

No. of Employees

31-35 25-30 22-24 15-21 10-14 5-9 0-4

Years of Sevice Range

Years of Service

Future Challenges:

GWA - Employment

424378 369 371 372 364

310 321 311

245231

0

50100

150200

250300

350400

450

No. of Employee

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Fiscal Year

Guam Waterworks Full Time Equivalency

Future Challenges:

GPA Meeting the ChallengeGWA Stepping to the Plate

Ratepayers Deserve Reliability

Future Challenges:

Training, Apprenticeship Consolidation of Services Private Public Partnership Outsourcing ?????

Tools to Meet Challenges