Guam § 12116 - Regulation of Rates.

§ 12116. Regulation of Rates.

(a) All rates, charges, assessments, and costs made or

charged by any public utility shall be just and reasonable and in

conformance with public law, and shall be filed with the

Commission; and no rate, charge or assessment cost shall be

established, abandoned, modified, departed from or changed

without a public hearing and the prior approval of the

Commission. The Commission, upon notice to the public utility,

may suspend the operation of any proposed rate, charge or

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assessment cost, or any proposed abandonment or modification

thereof or departure therefrom, and after a public hearing by

order regulate, fix and change all such rates, charges, General

Lifeline Rates, or assessment costs so that the same shall be just

and reasonable, and may prohibit rebates and discrimination

between localities, or between consumers, under substantially

similar conditions.

(b) Pursuant to its authority, Commission (hereafter

Commission) and Guam Waterworks Authority (hereafter

"GWA") shall immediately begin proceedings to establish rates

for the Guam Waterworks Authority, to be completed by

December 1, 1996 for implementation as hereinafter indicated.

As to setting these initial rates, and reviewing interim rates,

GWA is authorized to shorten time and the various days required

for notices under any law, rule or regulations as long as

reasonable notice is given to the public and the concerned party.

(c) (1) Interim rates. Until December 31, 1996,

interim rates at GWA shall be set by the Governor, who

shall set rates for water, sewer, and auxiliary services at

GWA which are fair and reasonable and in accordance with

the standards for the Commission in 12 GCA § 12116.1,

and in accordance with generally accepted rate setting

practices for publicly owned Public Utilities.

(2) Such interim rates shall not exceed the amount

reasonably necessary for estimated operational costs,

maintenance costs, required capital improvements, and

other reasonable costs and charges during the period from

the date of implementation of the interim rates to December

31, 1996.

(3) The PUC may reduce the interim rates set by the

Governor if excessive, with the burden on the Governor and

the GWA to establish that the interim rates are fair and

reasonable and in accordance with this Chapter.

(4) The Governor, during the period until December

31, 1996, may modify the interim rates after a hearing.

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(5) Such interim rates may be billed as to given

customers only upon an actual meter reading closing out

usage at the old rate and setting a base for beginning the

interim rates, with all subsequent billings until April 1, 1997

being based on actual (not estimated) readings.

(6) All interim rates shall be filed with the

Commission and the Speaker of the Guam Legislature at

least 15 days before becoming effective.

(d) The interim rates at GWA shall expire as of the last

billing cycle of December 1996 for each customer and thereafter

the new rates approved by the Commission shall apply.

(e) The rate package prepared by the Commission shall

include, at a minimum, a management audit, and a rate and cost

of services study.

(f) In addition to the appropriation for the operations of the

GWA contained in Section 3 of Chapter III of this Act, and in

addition to the transfer authority provided in Section 7 of

Chapter V of this Act, if rates charged by the GWA are

insufficient to cover operations, the Governor is authorized to

transfer up to Five Million Dollars ($5,000,000) from any

outstanding appropriations from the General fund to the Guam

Waterworks Authority as supplemental funding.

(g) (1) Upon enactment of this Subsection (g), any

existing rates and other items and charges of the Jose D. Leon

Guerrero Commercial Port (the Port) shall continue to remain in

effect unless and until modified in accordance with the

applicable provisions of this Chapter.

(2) Pursuant to its oversight supervision, the Commission

shall begin proceedings with the Jose D. Leon Guerrero

Commercial Port (the Port) to review and modify, or establish

rates and other items and charges set forth in Title 12 GCA §

10104(j), for the use of Port facilities or appliances.

(3) Until December 31, 2010, the Commission may

establish interim rates and charges for the use of Port facilities or

appliances as may be necessary for estimated operation or

maintenance costs, required capital improvements, or other

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reasonable costs.

(4) To establish any such interim rates or charges, the

Commission may conduct such investigation and hearings as it

deems necessary pursuant to its powers under Title 12 GCA §

12105.

(5) No later than December 31, 2010, the Port shall submit

to the Commission the results from a study of existing rates,

charges and cost of services provided by the Port.

(6) The request for proposals to study existing rates,

charges and cost of services shall be subject to the review and

approval of the Commission prior to issuance; and any contract

entered into by the Port for such services shall be subject to the

prior approval of the Commission.

(7) Any modification to or establishment of rates shall

thereafter be implemented in accordance with the procedures set

out in this Chapter.