(a) In order to enable GPA to obtain the best possible price to Guam, and in the best interest of GPA’s rate payers, GPA is authorized to incur long-term indebtedness not to exceed $258,000,000 maturing not later than thirty (30) years from issuance, bearing interest at a rate not to exceed 10% per annum, and payable solely from revenues of GPA. Notwithstanding § 8210, Title 12, Guam Code Annotated, without further approval by legislation, but subject to the approval of PUC, the indenture pursuant to which the indebtedness is issued may include any and all covenants and agreements described by said § 8210. The debt service coverage ratio used in the rate covenant for the debt authorized by this Act shall not exceed an amount approved in writing by I Maga’håga/Maga’låhi, and shall be the debt service coverage ratio hereafter used by PUC, together with other appropriate factors, in setting rates. The indenture may also include a pledge by the government of Guam not to repeal, amend or modify Chapter 12 of Title 12, Guam Code Annotated, in any way that would substantially impair the powers, duties or effectiveness of the PUC thereunder in relation to GPA and its rates. The proceeds of said debt shall be used to refund GPA’s existing indebtedness, including revenue bonds, FFB loans, 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 § 8113.1; (2) Refurbishment of the Weber barge; (3) Land acquisition for generator siting; (4) Next baseload unit having between 34.5 and 40 megawatts of capacity unless some greater capacity is recommended by the GPA board of directors, and approved by the PUC. (5) Anigua substation construction and equipment; (6) Upgrading of computers for central control of IWPS; (7) Replacement of deteriorated steel structures at Cabras supporting 115 KV buses and switch gear; and (8) Procurement and installation of stand-by generators for water wells and booster stations in the islandwide water, sewer, and power systems. (b) 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 interest of GPA’s rate payers to procure by various appropriate financing means available, GPA is hereby authorized to do so. (c) 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 § 1.148-18 of the Treasury Regulations.
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SOURCE: Added by P.L. 21-117:3 (July 15, 1992); amended by P.L. 21-133:1 (Sept. 3, 1992). Subsection (4) amended by P.L. 22-026 (Sept. 21, 1993). 2025 NOTE: Reference to the “Governor” replaced with I Maga’håga/Maga’låhi pursuant to 5 GCA § 1510. Subsection designations added and/or modified pursuant to authority granted by 1 GCA § 1606. 2023 NOTE: Reference to “territory” replaced with “Guam” pursuant to 1 GCA § 420. 2012 NOTE: Pursuant to the authority granted by 1 GCA § 1606, numbers and/or letters were altered to adhere to the Compiler’s alpha-numeric scheme.
§ 8113.4 PUC Authorization; Tax-Free. (a) 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 12 GCA § 12004. (b) 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, I Maga’håga/Maga’låhi 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-2taxability to the lender of the interest), not to exceed an annual actual percentage rate of 10%. The appropriateness, terms, conditions, fees, and interest rates of the debt (interim and long-term) shall be approved by the PUC. All expenses and costs involved in the origination of the debt shall be the responsibility of GPA, to be paid from the proceeds of said debt. (c) Interest paid by GPA on long-term and interim financing, if any, shall be free of income and business privilege taxation from the government of Guam. SOURCE: Added by P.L. 21-117:4 (July 15, 1992). Amended by P.L. 29-002:VI:28 (May 18, 2007) the name, Gross Receipts Tax, changed to Business Privilege Tax, effective July 17, 2007. 2025 NOTE: Reference to the “Governor” replaced with I Maga’håga/Maga’låhi pursuant to 5 GCA § 1510. 2024 NOTE: Subsection designations added pursuant to authority granted by 1 GCA § 1606.
§ 8113.5 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 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:
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A parcel of government of Guam land more particularly described as Lot No. 1361-1-C NEW, situated in Anigua, Municipality of Hagåtña, containing an area of 1,522± square meters or 16,382± square feet, as shown on the map recorded in the Department of Land Management on February 11, 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. SOURCE: Added by P.L. 21-117:5 (July 15, 1992). 2024 NOTE: Reference to Agana replaced with Hagåtña pursuant to P.L. 24-152:3 (Apr. 8, 1998).