The authority will also halt oil-burning power plants usage in order to comply with the US environmental regulations.
Scheduled to be built to operate on both liquefied natural gas and clean diesel, the new power plant will use treated wastewater for cooling, reports The Associated Press.
More than three-quarters of the island’s power needs are expected to meet through the new power plant by 2020.
The Pacific Daily News cited The University of Guam Center for Island Sustainability interim director John Peterson as saying: "I think the biggest issue is that we should be focusing first on (renewable energy alternatives) like solar and wind."
The Guam Power Authority plans to make a case with the Public Utilities Commission, highlighting that the rates will be good for taxpayers.
However, if the authority does not make changes as per the federal regulations, it is likely to be imposed with fines of up to $109m
every year, reports the news agency, citing officials.
