Be it enacted by the Legislature of the State of Yap.
Section 1
Section 2 of Yap State Law No. 4-4 is hereby amended to read as follows:
“Section 2. Definitions. As used in this Act:
(a) ‘Corporation’ means the Yap State Public Service Corporation or its designee.
(b) ‘Base rate’ means the total cost per kilowatt hour to generate and distribute electricity, but excluding the cost of fuel to generate electricity and the cost of electricity purchased by the Corporation from an independent power producer.
(c) ‘Fuel. cost:.’ means the cost of fossil fuel, or other fuel with varyi.ng prices, per kilowatt hour to generate and deliver electricity, considering the volume of fuel used for generation, the level of renewable or alternative energy delivered to the grid, and the amount of kilowatt hours produced and sold.
(d) ‘IPP’ means an independent power producer, or private commercial entity, that owns and operates facilities to generate electricity for sale to power utilities.
(e) ‘IPP rate’ means the cost per kilowatt hour at which the Corporation purchases electricity from an IPP.
(f)’Service’ includes the production, treatment and delivery of electricity and water and the management, treatment and disposal of sewage in the State of Yap.
{g) ‘Variable rate’ means the variable cost component of the electricity tariff comprised of the fuel cost and, where applicable, the IPP rate.”
Section 2
Section 4 of Yap State Law No. 4-4 is hereby amended to read as follows:
“Section 4. Duties of the Corporation.
(a) The Corporation shall supervise the construction, maintenance, operations, and regulation of all utility services, including power, sewage, and water; provided, that whenever feasible the Corporation may contract for private businesses to assume its duties with respect to one or more of its divisions.
(b) The Corporation shall within one year of confirmation of all board members implement a plan by which it or its designee will establish rates, metering, billing, and collecting fees in a fair and rational manner from all consumers of utility services so that the Corporation will be financially independent of all appropriations by the Yap State Legislature as soon as possible.”
Section 3
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