An Act to amend the CUC Commission Act of 2006 to permit the CUC to procure emergency power without approval of the CUC Commission (P.L. 16-9)

Section 1. Findings and purpose. The Commonwealth Legislature finds that the Commonwealth Public Utilities Commission Act of 2006 must be amended to permit the Commonwealth Utilities Commission (CUC) to procure emergency power during periods of declared power emergencies. The Legislature finds that the provisions of the Act, including but not limited to 4 CMC §§8402, 8409, 8439, and 8441, should not prevent CUC from entering into limited term contracts for emergency power without the approval of PUC.

Section 2. Amendments. (a) A new subsection (c) is added to 4 CMC 8402, with subsequent subsections re- lettered accordingly, to read as follows: "(c) "Emergency wholesale power generation contract" means a contract between CUC and person for a term of two years or less made pursuant to a declaration by the Governor under 3 CMC §5121." (b) 4 CMC §8402(e) is amended and relettered as (f) as follows: "(f). "Public utility" means the Commonwealth Utilities Corporation and any duly licensed private contractor operating: (1) A facility or subsystem of the community-wide water production and distribution system or electrical production and/or distribution system; or PUBLIC LAW NO. 16-9 SENATE BILL NO. 16-38, SDI (2) A facility or subsystem of the community-wide waste water disposal system, or both. A person who contracts with CUC for an emergency wholesale power generation contract is not a "public utility" within the meaning of this subsection." (c) 4 CMC §8409(d) is amended as follows: "(d) Except for an emergency wholesale power generation contract as defined in 4 CMC §8402(c), review and approve or disapprove any divestiture of capital or contractual agreement which may increase rates and charges to the consumer." (d) A new subsection (o) is added to 4 CMC §8409 to read as follows: "(o) Notwithstanding any other provision of this chapter, PUC shall not have the power or duty to review an emergency wholesale power generation contract."

Section 3. Retrospective Approval of Existing Contracts. The Governor may issue a retrospective declaration pursuant to 3 CMC §5121 for any contract in existence on the effective date of this Act provided that the contract is for a term of two years or less and is for emergency wholesale power generation. Such contracts shall not be reviewable by PUC, and the wholesale provider shall not be considered a public utility under 4 CMC

§8402(f) for the duration of the contract.

Section 4. Severability. If any provision of this Act or the application of any such provision to any person or circumstance should be held invalid by a court of competent jurisdiction, the remainder of this Act or the application of its provisions to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

Section 5. Savings clause. This Act and any repealer contained herein shall not be construed as affecting any existing right acquired under contract or acquired under statutes repealed or under any rule, regulation or order adopted under the statutes. Repealers contained in this Act shall not affect any proceeding instituted under or pursuant to prior law. The enactment of the Act shall not have the effect of tenninating, or in any way modifying, any liability, civil or criminal, which shall already be in existence on the date this Act becomes effective. Page 2 PUBLIC LAW NO. 16-9 SENATE BILL NO. 16-38, SDI

Section 6. Effective date. This Act shall take effect upon its approval by the Governor or becoming law without such approval.

Section 7. Sunset Clause. This Act expires on September 30,2010. CERTIFIED BY: ATTESTED BY: PETE P. REYES MARIA FRICA T. / PRESIDENT OF THE SENATE SENATE LEGISLATIVE SECRETARY overnor Commonwealth of the Northern Mariana Islands Page 3