CCU writes PUC about GWA bond order

by Ken Quintanilla

Guam - During its meeting Tuesday night, the Consolidated Commissions on Utilities approved two actions. According to CCU chairman Simon Sanchez, the board approved sending a letter to the Public Utilities Commission, expressing concern over the PUC's recent order to reserve $20 million from GWA's 2010 bond issuance. He adds in the letter, bond counsel Stan Dirks indicated that the PUC's decision would lead to a default of GWA bonds if implemented.

The CCU meanwhile authorized GWA to pursue legal action in the Superior Court of Guam to reverse the PUC's July order.

It was in July when the PUC discussed a recent order handed down by Superior Court Judge Michael Bordallo that found the PUC exceeded its statutory authority when ordering GWA to pay $18.3 million to the General Fund. The CCU believes the PUC's interpretation of Public Law 31-45 is incorrect.