Guam § 8306 - I Liheslatura’s Policy.

§ 8306. I Liheslatura’s Policy.

I Liheslatura supports, in principle, the development of alternate energy, but is concerned that the

alternate energy program not be a burden upon the taxpayers, power consumers, and residents of Guam.

Therefore, I Maga’håga/Maga’låhi, the government of Guam and the Guam Power Authority may enter

into alternate energy agreements to develop alternate energy or to purchase alternate energy only if all of

the following conditions are met:

(a) Local funds of the government of Guam or the Guam Power Authority Funds may be used to

develop alternate energy sources (including power generated from windmills, solar ponds and Ocean

Thermal Energy Conversion) as may be later, appropriated by I Liheslatura or approved by law for

that specific purpose.

(b) Any power produced or sold from alternate energy sources (including power generated from

windmills, solar ponds and Ocean Thermal Energy Conversion (OTEC) cannot be purchased by Guam

Power Authority or the government of Guam at a cost greater than the average cost of producing power

found in the islandwide power system (not inclusive of backup diesel generators), specifically the two

Cabras Units, the two Tanguisson Units, and the Piti Power Plant.

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(c) No contract may be signed by the government of Guam or the Guam Power Authority to

develop or purchase power from alternate energy sources (including power generated from windmills,

solar ponds and Ocean Thermal Energy Conversion), if such contract will result in increased expenses

and costs for the Guam Power Authority. No such alternate energy contract may be signed until the

board of directors of the Guam Power Authority has so certified that the agreement is consistent with

all bond covenants and that the price paid for electricity pursuant to the agreement does not exceed

actual current avoided cost.

(d) For so long as the Navy Power Pool Agreement is in effect, neither the Guam Power Authority

nor the government of Guam may contract to purchase any power generated from alternate energy

source (including power generated from windmills and solar ponds and Ocean Thermal Energy

Conversion) without giving the United States Navy prior written notification.

(e) Any contract to purchase alternate energy (including power generated from windmills and

solar ponds and Ocean Thermal Energy Conversion) must provide that any loss or damage to the

islandwide power system, Guam Power Authority and the U.S. Navy or to consumers as a result of or

proximately caused by the negligence of alternate energy supplier or by the quality of alternate energy

supplied will be borne solely by the alternate energy supplier who will hold Guam Power Authority

and the government of Guam harmless.

(f) All interface facilities to provide usable alternate energy (including power generated from

windmills, solar ponds and Ocean Thermal Energy Conversion) shall be installed and maintained at

the expense of the supplier of alternate energy. Any such interconnections shall be at existing lines

owned and operated by the Islandwide Power System, and such interfaces shall be subject to the

engineering standards and approval set by the Guam Power Authority.

(g) Any contract to purchase alternate energy (including power generated from windmills, solar

ponds and Ocean Thermal Energy Technology) must provide that neither the government of Guam

nor the Guam Power Authority shall be obligated to purchase electrical power not needed by the Guam

Power Authority.