P.R. Laws tit. 22, § 227f
(a) The Electric Power Authority is hereby authorized for the purpose of continuing and accelerating to the maximum the industries whose working operation requires a high consumption of electric power at the lowest possible cost, to accelerate its program of generating and distributing electric power through the installation of two units of approximately 400,000 KW, each, during the years 1971, and 1972, instead of the installation of two 200,000 KW units, as programmed by said Authority for said years.
(b) For the purposes of assuring that the Electric Power Authority shall not incur in any loss that may jeopardize its economic situation if for any reason some of the industries to which the Statement of Motives and subsection (a) of this section refer, are not established in Puerto Rico after the Electric Power Authority has incurred economic obligations in connection with the installation of the said units of approximately 400,000 KW, the Commonwealth Government pledges itself to reimburse to the Electric Power Authority the difference between the costs of generating electric power less the revenues derived from the sale of said power to the industries of this kind that may be established in Puerto Rico. For the purposes of determining the amount of money to be reimbursed by the Commonwealth Government to the Electric Power Authority under the foregoing formula, the generation costs consists of the sum of:
(1) A 91/2% of the additional investment required for installation of units of approximately 400,000 KW, on the investment of the 200,000 KW units for the years 1971 and 1972; and
(2) the operation cost, the product of kilowatt-hour (kWh), sold during the year immediately preceding to said industries and the average unitary cost of operation, maintenance and fuel in the 400,000 KW units to be installed for the years 1971 and 1972.
The obligation contracted in this section by the Commonwealth Government shall be extended for a period of not more than four (4) years commencing with fiscal year 1971, and ending with fiscal year 1974, both inclusive, and the total sum reimbursed by the Commonwealth Government to the Electric Power Authority in any of said fiscal years shall not exceed the sum of three million two hundred fifty thousand dollars ($3,250,000) during each one of said years.
Independently of the obligation contracted by the Commonwealth referred to in this section and for the purposes that the Electric Power Authority may grant electric power contracts to be effective after 1974, and for a period of not more than six (6) years, on the basis of a fixed price with the industries referred to in this section, the Commonwealth of Puerto Rico binds itself and guarantees to the Electric Power Authority the reimbursement of the resulting difference between the cost of the fuel used to generate the power sold to said industries computed on the average price of the fuel used in the system of the Electric Power Authority and that resulting if computed on the basis of a unitary price of twenty-four (24) cents for 1,000,000 BTU. Provided, That this guarantee shall not exceed three million dollars ($3,000,000) during any year of the period herein provided.
In order to facilitate the establishment of industries within the terms of this section so that they may begin their operations before January 1st, 1971, the guarantee in connection with the computation of the fuel established by this section shall be advanced for the term from the beginning of their operations up to January 1st, 1971.
(c) The Electric Power Authority shall determine, upon previous consultation with the Economic Development Administrator, those industries which in accordance with the provisions of this section may be established in the future in Puerto Rico and with which the Electric Power Authority shall enter into a special contract for the supplying of electric power; Provided, That said determination shall be made taking into consideration the demand for electric power of the industries, the electric charge installed, the capacity of the generating and distributing system of the Electric Power Authority, the electric power available to offer said services and the employment opportunity and the economic and social impact that the establishment of said industries may produce in benefit and profit of Puerto Rico, and; Provided, finally, That the Electric Power Authority shall not enter into any contract of supplying electric power under the provisions of this section with industries that from the beginning of their operations may have a demand of less than 40,000 KW.
In the event that an industry in particular begins its operations with an initial charge of less than 40,000 KW but is estimated that it will reach said capacity of demand in a reasonable period of time to be determined by the Economic Development Company and by the Electric Power Authority said industry shall remain covered by the provisions of this section, as soon as it reaches and maintains this demand.
(d) The Puerto Rico Electric Power Authority is hereby authorized in connection with all and each one of the fiscal years in which the guarantee of the Commonwealth referred to in this section is in force to withhold from the five percent (5%) of its gross income that it annually sets aside in accordance with § 212(b)(1) of this title, those sums of money that may be sufficient to comply with the obligations of the Commonwealth Government referred to in subsection (b) of this section.
(e) Withholdings of any amount of money out of the five percent (5%) of the gross income of the Authority referred to in paragraph (d) of this title shall be entitled to a priority immediately following the priority assigned for the withholding of funds under § 1, subsection (a) of Act No. 46, approved June 4, 1960, with regards to rural electrification programs.
(f) The Puerto Rico Electric Power Authority is hereby authorized, in connection with the provisions of paragraphs (1) and (2) of subsection (b) of § 212 of this title, to cease withholding from its gross income the five (5) and the six percent (6%) corresponding to its gross income by reason of the sale of electric power to the industries, that in accordance with the provisions of this section the Electric Power Authority may determine to enter into a contract of special supply for the supplying of electric power; as well as to cease withholding the said five (5) and six percent (6%) in connection with any other industries who reach an individual demand of electric power of not less than 40,000 KW from the beginning of their operations, or after the lapse of a reasonable initial period of trial.
History —May 31, 1967, No. 82, p. 284, §§ 1—6; June 26, 1968, No. 140, p. 398, §§ 1—4.