AN ACT TO PROVIDE EMERGENCY ELECTRICAL GENERATION RELIEF FOR THE TERRITORY BY ADDING Q98113.1 THROUGH 8113.13 AND 912016.1 TO TITLE 12 OF THE GUAM CODE ANNOTATED IN ORDER THAT THE GUAM POWER AUTHORITY AND THE PUBLIC UTILITIES COMMISSION MAY COOPERATE IN THE EXPEDITED PROCUREMENT OF ADDITIONAL GENERATING EQUIPMENT FOR THE ISLAND-WIDE POWER SYSTEM  APPROPRIATING FOR THE ACQUISITION OF SUCH EQUIPMENT, AND FOR SKIP.

BE IT ENACTED BY THE PEOPLE OF THE TERRITORY OF GUAM:

Section 1. $8813.1 is added to Title 12, Guam Code Annotated, to read: "§8113.1. Expedited procurement of generators. In order to provide immediate relief from the critical power shortage existing in 1992, the Guam Power Authority (herein called "GPA"), with all deliberate speed, and with the consent of the Public Utilities Commission (kerein called "PUC"), shall procure and install generators adding at least 76 megawatts more or less of nameplate generating capacity to the Island-Wide Power System ("IWPS"). GPA has determined what equipment it shall procure, weighing the time necessary to make the equipment an efficiently operating component of the IWPS, the per kilowatt hour cost of the equipment, factoring in the maintenance cost of the equipment over its anticipated usable life, and the compatibility of the equipment with the long-range capital improvement plans for the IWPS."

Section 2 58113.2 is added to Title 12, Guam Code Annotated, to read: "s8113.2. Interim debt. Procurement by GPA of the generators and ancillary equipment, land and buildings will require long-term financing in the form of revenue bonds or capital leases, or a combination of both. Pending issuance of revenue bonds, in order to identify funds sufficient to enable GPA forthwith to enter into contracts and obligations incident to procurement and installation of the generators and ancillary equipment, and to enable GPA to obtain or provide for interim funding, the Governor may guarantee the repayment by GPA of such interim debt in an amount not to exceed $45.6 million. In order to reduce the amount of interim debt, the Governor is authorized to transfer to GPA from any funds of the government of Guam or appropriated by statute, excluding appropriations to the Judicial or Legislative Branches, such sums as he may identify as available, without interest, to be repaid not later than September 1,1993 from fund proceeds herein authorized. If the Governor identifies other sources which require Legislative approval he shall promptly introduce a bill requesting approval to use these funds. All sums advanced by the government of Guam to expedite the interim financing loan shall be repaid promptly from the bond proceeds. GPA presently has outstanding long-term and other indebtedness which includes that to the Federal Financing Bank ("FFB") with certain restrictive covenants. Without retirement of the FFB indebtedness, which include covenants preventing parity of new indebtedness, GPA is at an extreme disadvantage in obtaining additional long-term debt. Further, GPA has an existing short term $26,000,000 bank loan which is intended to be replaced by issuance of revenue bonds at the earliest practicable time, and which should be replaced in order to enhance a new issuance here authorized. The $20 Million loan to GPA in Public Law 20-112 is hereby converted to a grant with the condition that the $800,000 interest free annual payment be used for debt service and a sourceof funding for the long-term debt."

Section 3. 581 13.3 is added to Title 12, Guam Code Annotated, to read "58113.3. Long-term indebtedness. In order to enable GPA to obtain the best possible price to the territory, and in the best interest of GPA's rate payers, GPA is authorized to incur longterm indebtedness not to exceed $240,000,000 maturing not later than thirty (30) years from issuance, bearing interest at a rate not to exceed 10% per annurn, and payable solely from revenues of GPA. The debt service ratio coverage for the debt authorized by this Act shall not exceed an amount approved in writing by the Governor, which shall be the debt service coverage used by PUC in setting rates. The proceeds of said debt shall be used to refund GPA's existing indebtedness, including revenue bonds, FFB low, the short term indebtedness herein authorized, and the $26 million interim debt and to finance the following listed projects:

1. Procurement and installation of the generation, and ancillary equipment described in 58113.1;

2. Refurbishment of the Weber barge;

3. Land acquisition for generator siting;

4. Next baseload unit (35 MW);

5. Anigua substation consmction and equipment;

6. Upgrading of computers for central control of IWPS; and

7. Replacement of deteriorated steel structures at Cabras supporting 115 KV buses and switch gear.

To the extent GPA, with the approval of PUC, determines that as to procurement and installation of the generators and ancillary equipment, it is in the best interests of GPA's rate payers to procure by various appropriate financing means available, GPA is hereby authorized to do so. To the extent costs are incurred or advances are received for such projects prior to issuance of the revenue obligations authorized hereby, such costs may be reimbursed from proceeds of such obligations. This authorization shall constitute an expression of the intent of the government of Guam to reimburse such costs for purposes of 51.148-18 of the Treasury Regulations."

Section 4. Section 8113.4 is added to Title 12, Guam Code Annotated to read: lq§8113.4 PUC authorization; tax-free. Such funds as GPA may borrow to implement the requirements of this Act, shall be borrowed upon such terms and conditions as shall be authorized by PUC pursuant to its regulatory authority ensuring that any rates resulting to consumers are reasonable as provided by 512004 of this Title 12.  The amount and terms for both interim and long-term debt authorized by the Act shall be as set by PUC, not to exceed the limits set by this Act. All interest on the debt and all costs of financing and all associated costs for new generation shall be capitalized so there are no associated demands on GPA cash and no impact on rates until construction and installation of the respective generators are complete and the generators concerned are on line and providing power, revenue and benefits to GPA and the people of Guam. On behalf of the government of Guam, the Governor may guarantee the repayment of the interim debt. The term of the interim debt allowed by this Act shall be repaid not later than September 1, 1993, during which period long-term financing to pay off this debt shall be obtained by GPA. The interim debt terms shall allow for an early payoff with no prepayment penalty after two (2) months, and the interest rate thereon shall not exceed a reasonable rate to GPA (taking into account non-taxability to the lender of the interest), not to exceed an annual actual percentage rate of 10%. The appropriateness, tenns, conditions, fees, and interest rates of the debt (interim and long-term) shall be approved by PUC. All expenses and costs involved in the oripation of the debt shall be the responsibility of GPA, to be paid from the proceeds of said debt. Interest paid by GPA on long-term and interim financing, if any, shall be free of income and gross receipts taxation by the government of Guam."

Section 5. 58113.5 is added to Title 12, Guam Code Annotated, to read: "98113.5. Transfer of property. To provide necessary land for installation of the generators, for use for substations, and for building uses, there is hereby transferred to GPA, in fee simple, the following described parcels of real property, all hereby determined to be necessary and related to GPA's immediate needs for additional generation capacity and its operation, maintenance, transmission and distribution: Macheche Substation: Two (2) parcels of government of Guam land more particularly described as Lots Nos. 5246-2 and 5246-3, each situated in the Municipality of Dededo, each containing an area of 3,716 + square meters or 40,000 + square feet, each as shown on the map recorded in the Department of Land Management on June 6,1988, under Document Number 399099. Anigua Substation: A parcel of government of Guam land more particularly described as Lot No. 1361-1-C NEW, situated in Anigua, Municipality of Agaiia, containing an area of 1,522 2 square meters or 16,382 + square feet, as shown on the map recorded in the Department of Land Management on February ~1, 1981 under Document Number 319048. T&D/Supply Warehouse Relocation: A parcel of government of Guam land more particularly described as Lot No. 10122-13-R1, situated in the Municipality- of Dededo, containing an approximate area of 32,115 + square meters or 345,551 + square feet, as shown on the map recorded in the Department of Land Management on May 26, 1988 under Document Number 398768."

Section 6. 58113.6 is added to Title 12, Guam Code Annotated, to read: "58113.6. Generators at the Hospital. Subject to agreement between the Guam Memorial Hospital Authority ("GMHA") and GPA whereby GMHA makes available to GPA at the Guam Memorial Hospital site sufficient land for installation of electrical generators and related ancillary equipment, including fuel storage, and in consideration of such agreement, should a shortage of electrical supply otherwise occur, from and after commissioning of that generating capacity to be installed at the Guam Memorial Hospital site, GPA will apportion to GMHA sufficient electrical supply from the generating capacity there  installed to meet the needs of GMHA; provided, however, that -the terms and conditions of any such agreement between GMHA and GPA shall be subject to prior review and approval of PUC." 

Section 7. $8113.7 is added to Title 12, Guam Code Annotated, to read "§8113.7. Conditional uses approved. To permit use by GPA of the parcels of land desaibed in 5S8113.5 and 8113.6 of this Title for public utility uses, GPA is hereby granted such conditional uses."

Section 8. 58113.8 is added to Title 12, Guam Code Annotated, to read:

 "581 13.8. Waiver of procurement requirements. In view of the urgency for procurement of the generators and ancillary equipment, the requirements of Part B, Article 3, Chapter 5, Title 5, Guam Code Annotated, are hereby waived and GPA is hereby authorized to utilize such method of source selection as it deem necessary, subject to the approval of PUC for the generators and anallary equipment described in s8113.10 and 81 13.12 of this Title and as shown on GPA Exhibit. I attached to the Act of which this section is a part."

Section 9. §12016.1 is added to Title 12, Guam Code Annotated, to read:

"§12016.1. Exemption from certain provisions. In the conducting of any hearing pertaining to the implementation of the provisions of the act authorizing the emergency procurement of generating equipment (Bill No. 898, 2lst Guam Legslatwe) the Commission shall be exempt from the provisions of $12016 of this Chapter. The Commission is requested to act upon any request of the Guam Power Authority ("GPA") having to do with the implementation of such act expeditiously in order to enable GPA . to timely accept such bids as it has received as may be approved by the Commission; provided, however, that the Commission's authority under 912004 of this Chapter to determine the need, prudence and timing of contracts and obligations contemplated by such act is recoped and confirmed."

Section 10. 98113.9 is added to Title 12, Guam Code Annotated, to read: "§8113.9 Liquidated damages. GPA shall provide that any contract awarded to a bidder to provide GPA with a generating unit shall include in the contract a provision which will impose liquidated damages of not less than $2,000 per day for each day beyond an agreed date that the contractor promises to activate a specific generating unit. The provisions in this section shall not apply in the case of force majeure to the extent of delays caused by  such force majewe. The provisions of this section can not be waived.

Section 11. §8113.10 is added to Title 12, Guam Code Annotated, to read: "§8113.10.

Dates when generators go on line. GPA did, on July 10, 1992, provide the Legislature, while sitting as a Committee of the Whole, with a list of the specific dates that each of the following generating units purchased by the authorization contained in this Act will come on line and be producing electricity for the MIPS. Such dates were: [...]

The Authority shall also provide the Speaker of the Legislature and the Governor of Guam a detailed explanation as to why a specific dateline cannot or has not been met within ten (10) days of the date missed."

Section 12 §8113.11 is added to Title 12, Guam Code Annotated, to read: "§8113.11. Power to southern Guam. Any generating units purchased with the funds authorized by this Act and which are sited to the south of a line extending from the northernmost point in Agat to the northernmost point in Yoiia and are activated to supplement the IWPS shall be used to provide electric power to the villages of Yofia, Talofofo, Inarajan, Merizo, Umatac, Agat and Santa Rita first, and only secondarily for the rest of the WPS; provided, that all parts of the island share equally in anyvloadshedding. Excess electricity from these generating units may then be used to provide electric power to the Manengon Hills project only if there is adequate power for the rest of the island.

Section 13. §8113.12 is added to Title 12, Guam Code Annotated, tc read: "$81 13.12. Awards to specific bidders. Of the generating equipment to provide the 76 megawatts more or less of electricity authorized by this Act 60 megawatts shall be purchased from the bidden listed in this section, and 16 megawatts will be achieved as a result of the refurbishment of the Navy's Weber Barge. The new units shall be purchased from the bidders Pacific Machinery and Stewart & Stevenson. These are the successful bidden to supply new generators to GPA as shown in GPA Exhibit I, attached to this Act and made a part thereof by reference. If such units as are described in this Act are not purchased pursuant to said bids, this Act shall be a nullity. The units purchased must be new units and may not be replaced or substituted with rebuilt units. PUC may waive bid defects or minor technical changes as recommended or approved by GPA.

Section 14. 98113.13 is added to Title 12, Guam Code Annotated, to read: "§8113.13. Repayment of FFB debt. Part of the funds authorized to be borrowed by this Act shall be used to purchase the entire debt held by FFB and GPA must use the FFB Reserve fund to offset the balance to be paid."

Section 15. Appropriation for SKIP. Sixteen Thousand Nine Hundred Seventy-Four Dollars ($16,974) are appropriated from the General Fund to SKIP Entertainment Company ("SKIP") to supplement travel funds needed to complete SKIP'S current mainland tour.