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AN ACT TO ADD 8120 TO TITLE 12, GUAM CODE ANNOTATED, TO MAKE GUAM POWER AUTHORITY LIABLE FOR DAMAGES CAUSED TO APPLIANCES AND CONSUMERS AS A RESULT OF POWER SURGES OR FLUCTUATIONS IN VOLTAGE OR FREQUENCY IN ELECTRIC POWER SUPPLIED BY THE GUAM POWER AUTHORITY; AND TO APPROPRIATE FUNDS FROM SECTION 2 OF PUBLIC LAW NO. 20-39 FOR INFRASTRUCTURE IMPROVEMENTS TO THE TALOFOFO SUBDIVISION.

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

Section 1. Legislative findings. The Legislature has received numerous complaints about ruined appliances resulting from power surges. The Legislature finds that there is a continuing problem with consumers with ruined appliances and electrical equipment as a result of power surges and fluctuations with voltage over Guam Power Authority lines. The Legislature finds that this situation is totally unacceptable. The consumers have no control over the quality of power delivered by the Guam Power Authority (the "Authority"). Control over power voltages and power frequency (60 mhz) is strictly in the hands of the Authority. Despite this, the Authority takes the position that it is the responsibility of the consumers to provide elaborate voltage control devices and power conditioning units to protect refrigerators, air conditioners, televisions, VCR's, and other electrical appliances. The consumers of the Authority are entitled to quality, reliable power and should not be required to bear the costs of damage caused by voltage and frequency fluctuations nor should they be required to buy voltage and frequency regulators which in some cases cost more than some of the appliances they are designed to protect. The Legislature further finds that this problem is unique to Guam among the states and territories of the United States, and that the people of Guam, as Americans, are entitled to the same quality of electrical power as in the United States mainland. The Legislature also finds that the Authority should bear the cost of damage to electrical appliances caused by the Authority's negligence.

Section 2 $8120 is added to Title 12, Guam Code Annotated, to read as follows:

"s8120. Authority liable for damage".

The Authority shall be liable for damage caused to electrical appliances and devices when such damage is proximately caused by power surges, voltages fluctuations or frequency fluctuations in the power supplied by the Authority to a consumer and when such damage is not a result of any negligence on the part of the consumer and is not a result of an otherwise defective appliance or electrical device. Except for computer equipment or equipment for which the manufacturer recommends that a voltage protection device, surge protector, or power conditioning device be installed by the consumer, the Authority may not require the use of voltage protection devices, surge protectors or power conditioners and may not raise the failure to use such devices as a defense to claims for damages arising out of voltage or frequency fluctuations or power surges. In establishing liability for damages pursuant to this section, the consumer need only prove that the appliance or electrical device was damaged by a variation of voltage or a variation of frequency or a surge in power supplied by the Authority. The Authority may raise as an affirmative defense proof that the appliance or electrical device in question was defective or that the fluctuation of voltage or frequency or power surge was not caused by the Authority but was in fact caused by the consumer's electrical wiring system or devices or equipment belonging to the consumer. It shall be an affirmative defense for the Authority to establish that the quality of power delivered to the consumer's meter was satisfactory. Any consumer claiming damages from the Authority who relies upon the provisions of this section must file such a claim with the Authority within ninety (90) days of the date of the alleged damage. Otherwise, except for the shortened period in which to make a claim, the procedures contained in the Government of Guam Claims Act shall apply to claims brought pursuant to this section to the extent not otherwise inconsistent herewith. This section shall be effective only as to damages occurring after the date that this section becomes law."

Section 3. Appropriation for Talofofo subdivision from previous appropriation.

Two Million Three Hundred Ten Thousand Seven Hundred Eighty-Nine Dollars ($2,310,789) are hereby appropriated from the appropriation previously made for the northern and southern high schools in Section 2 of Public Law No. 20-39 in order to fund the following infrastructure improvement projects for the Talofofo Subdivision (Land for the Landless): (i) Road construction, clearing and grubbing grading (cut and fill); providing 6" thick base course and compact: $ 298,415, (ii) Installation of RC pipe drainage, catch basins and concrete valley gutters on both sides of the roads: 983,110, (iii) Asphaltic cement paving, applying a 2" thick asphaltic concrete pavement approximately 16,911' long and 24' wide: 604,140, (iv) Construction of ponding basin at 7 locations as shown on the plan: 215,052, Total direct costs: $2,100,717, 10% contingency: 210,072, Total costs: $23 10,789.