Amounts of Rates and Charges; Refunds

[Declared invalid by Guam Power Authority v. Bishop of Guam. 383 F. Supp. 476 (D.Ct. Guam 1974).] SOURCE: GC § 21553. Amended by P.L. 12-042 (Sept. 21, 1973). Declared invalid by the District Court of Guam in Guam Power Authority v. Bishop of Guam. 383 F. Supp. 476 (D.Ct. Guam 1974). 2014 NOTE: P.L. 12-042:4 amended this provision as indicated in italics: Section 21553. Amounts of rates and charges; refunds. Except to the extent otherwise permitted or required by an indenture or any contract relating to indebtedness incurred by the Board, all rates and charges shall at all times be fixed to yield annual revenues equal to the annual principal payments and interest charges and reserve fund requirements on all bonds at any time issued and outstanding hereunder, the annual system operation and maintenance costs and the annual principal payments and interest charges on all other outstanding indebtedness incurred by the Board, provided, however, that the rate for services supplied to any nonprofit educational facility, church or publicly-owned hospital shall not exceed one half (1/2) of the minimum rate charged to any other customer. An indenture or contract of indebtedness may provide for payment from revenues of refunds of rates and charges that are collected in error and that are refundable by the Board in accordance with regulations prescribed by it. COURT DECISIONS: Guam Power Authority v. Bishop of Guam. 383 F. Supp. 476 (D.Ct. Guam 1974) invalidated sections 3 and 4 of P.L. 12-042 (Sept. 21, 1973). Section 4 amended the original codification of this provision, GC § 21553. The District Court of Guam held that these sections 3 and 4 of P.L. 12-042 were vague and ambiguous, and further, that there was rational basis justify requiring customers to subsidize private functions of churches and private schools, or public functions of government schools and hospitals.