Guam – Senator Tom Ada has introduced a bill that he says would allow the Guam Power Authority “greater borrowing flexibility” to finance needed capital improvement projects and fund the Energy Program Revolving Fund.
The Senator notes that GPA is already authorized to borrow $94M and the capital improvement projects are ready to go, but he says the Energy Program Revolving Fund has yet to be developed.
Bill 356-32 would allow GPA to issue bonds for projects that are ready so that the capital improvement projects can begin without delay and they would not be held up by the pending Energy Program Revolving Fund, which is still being developed.
The Senator explains in a release that Bond Counsel has recommended amendments to the existing law authorizing the borrowing to allow GPA to proceed separately with the capital improvement projects.
READ the release from Senator Ada below:
GPA Needs Greater Borrowing Flexibility to Finance Island-Wide Capital Improvements.
Hagåtña, Guam: On Wednesday, June 18, 2014, Senator Tom Ada introduced Bill 356-32 (COR), to provide the Guam Power Authority (GPA) more flexibility in borrowing the previously authorized $94,000,000 needed to finance capital improvements to the power system and providing funds to support an Energy Program Revolving Fund for residential and/or commercial purposes. The planned capital improvements to the system have been identified and are ready to be executed; however, the details of the energy program revolving fund have yet to be developed. Bill 356-32 will allow GPA to issue bonds for projects that are ready and not delay the entire borrowing pending the development of the Energy Program Revolving Fund
P.L. 32-140 requires GPA to borrow “not less than Five Million Dollars ($5,000,000) to be held in reserve by GPA in a fund separate and apart from any other fund for the sole purpose of establishing a revolving loan fund to support legislatively authorized demand-side management and/or renewable energy programs for residential and/or commercial purposes” (the “Energy Program Revolving Fund”).
Bond Counsel has recommended that amendments to P.L. 32-140 will be needed to allow GPA to borrow separately for the capital improvement projects and for the energy program, respectively. Bill 356-32 will also place a ceiling of $5,000,000 on the amount to be set aside for the energy program revolving fund.