Guam § 8113 - Long-Term Indebtedness.

§ 8113. Long-Term Indebtedness.

(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.

COL 2025-04-22