Home | Databases | WorldLII | Search | Feedback Palau Sessional Legislation

To authorize payment of national and state PPUC bills, RPPL 8-6 2009

PALAU

EIGHTH OLBIIL ERA KELULAU
RPPL NO. 8-6
First Regular Session, February 2009   (Intro. As H. B. No. 8-9-1, HDI, SD3, CD1)

AN ACT

To authorize payment by the Palau Public Utilities Corporation of the power bills of the National Government and the State Governments, and for other related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Legislative Findings. The Olbiil Era Kelulau finds that fuel costs have subsided and are now lower than they were on June 20, 2008, when RPPL 7-47 was enacted, which provided a fuel subsidy for certain low use commercial and residential customers of the Palau Public Utilities Corporation ("P.U.C.").  The $3,000,000 grant provided to P.U.C. to subsidize fuel increases has not been fully expended, and there are sufficient funds remaining to pay the power bills of the National and State Governments.  The Olbiil Era Kelulau finds that it is the best interest of the Republic to use a portion of the remaining grant funds to pay the power bills of the National Government and of the State Governments.

Section 2. Amendment of Appropriation. Section 6 of RPPL No. 7-31, the "Palau International Airport Loan Revision Ratification Act," as added by RPPL 7-47, is hereby amended to read as follows:

"Section 6. Authorization to grant $3,000,000 from loan proceeds to Palau Public Utilities Corporation.

(a) Notwithstanding anything to the contrary in Sections 3 and 5 above, $3,000,000 of the $8,000,000 of the non-lapsing funds appropriated under Section 5 may be awarded as a grant to Palau Public Utilities Corporation ("P.U.C."). Except as provided in Subsection (b) below, these funds, are earmarked to underwrite increased fuel costs to P.U.C.  Upon receipt of this grant, P.U.C. must credit the fuel rate to its residential customers whose usage is no more than 500 kilowatt hours (KwH) per month, and for commercial customers whose usage is no more than 2,000 KwH per month, so that amounts due from those customers will equal the effective rate on May 31, 2008.  This credit shall remain in effect either (1) until the effective rate is reduced to May 31, 2008 levels or lower; or (2) the date when the reduction in revenues to P.U.C. caused by the credit reaches the amount of the grant, after which time the Electric Service Rate Schedules, effective June 5, 2008, shall go into effect.

(b) Notwithstanding any other provision of law, P.U.C. is hereby authorized to, and shall, apply the balance of the grant funds defined in subsection (a) of this Section to the National Government and State Government Accounts in accordance with that certain Memorandum of Understanding by and between the National Government of the Republic of Palau and P.U.C. dated July 31, 2009."

Section 3. Effective Date.  This Act shall take effect upon its approval by the President of the Republic of Palau or upon its becoming law without such approval, except as otherwise provided by law.

PASSED: July 31, 2009
Approved this 31st day of July, 2009.
                                    /s/                                     
His Excellency Johnson Toribiong
Republic of Palau