FOR THE DISTRICT OF PUERTO RICO DUAMEL SANTIAGO-RAMOS, INDIVIDUALLY AND AS REPRESENTATIVE OF THE CONJUGAL PARTNERSHIP OF SANTIAGO MARINES RIVERA FIGUEROA, INDIVIDUALLY AND AS CLASS REPRESENTATIVE, and CARIBBEAN ECONOMIC COUNCIL, INC. PLAINTIFF VS. AUTORIDAD DE ENERGIA ELECTRICA DE PUERTO RICO, AKA PUERTO RICO POWER COMPANY [PREPA] and MARIMAR PREZ-RIERA, CHAIR, BOARD OF DIRECTORS INDIVIDUALLY, AND AS PRESIDENT OF THE BOARD OF DIRECTOR. DOES A-Z ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) / Case No.: CLASS ACTION COMPLAINT SEEKING DAMAGES EQUITABLE AND INJUNTIVE RELIEF Demand for jury trial CLASS ACTION COMPLAINT Plaintiff[s] sues defendant in chancery of this court. In support the appearing party state[s] and pray[s] as follows: PRELIMINARY STATEMENT 1. This class action is brought on behalf of 1.8 million customers of defendant[s] Autoridad de Energia Electrica (herein after PREPA) for damages suffered in the capricious, arbitrary, and predatory assessment for a fuel adjustment charge that violations the U.S. Constitution and the Robinson-Patman Act codified as 15 U.S.C. 13 for purchases involved which are , have been and continue to be in commerce, that there has been discrimination in price between different purchasers of products of like grade and quality [electric power commodity] , and Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 1 of 36 2 that effect of discrimination is substantially to lessen compensation or tend to create monopoly over the retail delivery of electric power to the consumer. 2. Counts 1-5 are constitution violation as against individual consumers, the complaint seeks constitutional injury including damages for the differential economic treatment between the religious, political and economic preferential treatment, injunctive relief seeking affirmative treatment of equality in pricing among all consumers; Count Six is the Robinson-Patman Act codified as 15 U.S.C. 13 for delivering -in commerce- the identical product at discriminatory rates. The complaint seeks damages for the price differential with other classes of rates charged for the same kilowatt hour commodity, injunctive relief, and declaratory judgment that defendants have violated the Robinson-Patman Act 15 U.S.C. 13. Count Seven is a declaratory judgment brought by Plaintiff Caribbean Economic Counsel declaring PREPA predatory pricing violative of the Robinson-Patman Act 15 U.S.C. 13 and seeking injunctive relief to affirmative require PREPA to formulate a tariff that complies with the congressional intent Robinson-Patman Act 15 U.S.C. 13. Count Eight is a civil rights violation under 42 U.S.C. 1983 as against the individual capacity of defendant MARIMAR PREZ-RIERA for violation of the Equal Protection clause of the Fourteenth Amendment for applying disproportionately and benefitting certain religious groups, by applying approving different tariffs which benefitted capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charges, welfare recipients, religious groups, political associations, and municipal subdivisions over the individual plaintiff and class of individual consumers. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 2 of 36 3 THE PARTIES 3. Plaintiff[s] is a conjugal partner of the conjugal partnership known as Duamel Santiago-Ramos, Individually and as Representative of the Conjugal Partnership of Santiago Marines Rivera Figueroa. Plaintiff demands and prays for relief in his individual capacity and as member of the class of individual consumers which are forced to pay for the fuel adjustments charge which contains capriciously, arbitrarily, and unconstitutional charge that forces the individual consumer to pay for religious and other governmental unwelcome associations. Plaintiff[s] is [a]re at all times materials hereto are citizens of the Commonwealth of Puerto Rico and, are sui juris. During the relatives period of time material hereto plaintiff has maintain for (several years) an account with defendant with account number 032 0046137 0027. Plaintiff is a financial professional working at a major financial institution in Puerto Rico. 4. Plaintiff Caribbean Economic Council is a non-profit organization to which Plaintiff Duamel Santiago-Ramos is a member of the counsel. Plaintiff Caribbean Economic Council brings this cause on its behalf and its entire association members. Caribbean Economic Counsel association members are customers and electric power consumer who have an interest to have a balance electric power tariff so as to provide a balance economic development in the island of Puerto Rico. Caribbean Economic Council members would otherwise have standing to sue in their own right; (2) the interests it seeks to protect are germane to the organization's purpose; and (3) neither the claims asserted, nor does the relief requested, require the participation of the individual members in the lawsuit. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 3 of 36 4 5. Defendant PREPA is a political subdivision of the Commonwealth of PR created by a legislative Act for the purpose of providing electric power to the Commonwealth of PR with the most effective manner. Pursuant to 22 L.P.R.A. 193 the defendant is hereby created a body corporate and political subdivision constituting a public corporation and governmental instrumentality of the Commonwealth of Puerto Rico by the name of the Puerto Rico Electric Power Authority [PREPA]. The Authority created is and shall be a governmental instrumentality subject, as provided herein, to the control of its governing board, but it is a corporation having legal existence and personality separate and apart from that of the Commonwealth of Puerto Rico. The debts, obligations, contracts, bonds, notes, debentures, receipts, expenditures, accounts, funds, undertakings, and property of the Authority, its officers, agents or employees shall be deemed to be those of said government-controlled corporation and not to be those of the Commonwealth Government or any office, bureau, department, commission, dependency, municipality, branch, agent, officer or employee thereof. 6. Marimar Prez-Riera, Chairperson, Board of Directors individually, and as President of the Board of Director is a natural person that manages and controls the Board of Director and is vested with the establishment of discriminatory price of the commodity in commerce. Defendant Marimar Prez-Riera public policy is to lower the cost of fuel based on the Governors policy 1 . 7. Does A/Z are fictional parties that are members of the governing board of defendant PREPA that approved the discriminatory price practice and are liable under the Robinson-Patman Act 15 U.S.C. 13. 1 http://www.aeepr.com/noticiasread.asp?r=DESQDSWMAC Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 4 of 36 5 8. The primary purpose of the creation of the Public corporation is to purpose the conserving, developing and utilizing, and aiding in the conservation, development and utilization of water and energy resources of Puerto Rico, for the purpose of making available to the inhabitants of the Commonwealth, in the widest economic manner, the benefits thereof, and by this means to promote the general welfare and increase commerce and prosperity, see 22 L.P.R.A. 196. Puerto Rico Electric Power Authority (the Authority) is a public corporation and governmental instrumentality of the Commonwealth of Puerto Rico (the Commonwealth) created on May 2, 1941, pursuant to Act No. 83, as amended, re-enacted, and supplemented, of the Legislature of Puerto Rico (the Act) for the purpose of conserving, developing and utilizing the water, and power resources of Puerto Rico in order to promote the general welfare of the Commonwealth. Under the entity concept, the Authority is a component unit of the Commonwealth. The Authority produces, transmits, and distributes, sells to consumers all of the electric power consumed in Puerto Rico. The operating and financial goals of the PREPA do not envision the payment of subsidies to promote religious groups, welfare and political subdivisions subsidies, and state government finance of electric power. As a government instrumentality PREPA maintains a tax exemption from taxation of the state and is prohibited (by its creation) from entertaining the notion or practice to finance the state government or pay taxes to the state government, or its political subdivisions. When defendant PREPA was created the goal was to provide the most efficient commodity in commerce to the consumers of Puerto Rico and if through the efficient successful operation profits Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 5 of 36 6 were generated only 11% would be paid to the Commonwealth of Puerto Rico. In 2010 the Commonwealth of Puerto force a payment $232,431.00 as a form of contribution in lieu of taxes, when in fact the net income for PREPA was $24,029,000.00 which would have required a payment of $2,643,190.00 to conform to the organizational mandate. 9. Defendants A-Z are individual members of the board of directors appointed [in part] by the political designation who are responsible for marinating the public policy and price discrimination of the commodity in commerce delivered to consumers in Puerto Rico. GENERAL ALLEGATIONS 10. During the relative period of time the defendant PREPA has had an absolute monopoly of the production, generation, sale, and distribution of electric power, the defendant PREPA has become a political functionary of the party in Government by inter alia establishing political views, borrowing moneys for other sister agencies, lending other Governmental agencies and political subdivisions monies, and requiring the payment of subsidies to pay for certain political views and associations. 11. By some economists Puerto Rico's economy is considered somewhat fictitious. Puerto Rico has very few natural resources of economic value and its economy relies mainly on Federal Aid from the United States Government, which depends on the industrialization programs and the tax incentives that U.S. offers. The main government expenditures are on health, education and welfare. GDP per Capita Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 6 of 36 7 Country Comparison establishes a reduction in per capita income in Puerto Rico: Country 2000 2008 2009 2010 Puerto Rico 10,000 18,100 17,400 16,300 United States 36,200 48,300 46,700 47,400 Jamaica 3,700 8,800 8,500 8,400 Cuba 1,700 9,700 9,800 9,900 12. The Puerto Rico per capita income has been declining to levels that prevent most consumers from paying the highest electric power rated in the United States. The available data suggests that Puerto Rico per capita income has decrease by -5. 8percent. See table Country 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Puerto Rico 4.2 2.8 2.2 0.5 1.6 2.7 2.5 0.5 -1.2 -2.5 -3.7 -5.8 2 13. In 2008 the average electricity tariff in the U.S. was 9.82 Cents/kilowatt-hour (kWh). In 2006-07 electricity tariffs in the U.S. were higher than in Australia, Canada, France, Sweden and Finland, but lower than in Germany, Italy, Spain and the UK. Residential tariffs vary significantly between states from 6.7 Cents/kWh in West Virginia to 27.0 Cents/kWh in Puerto Rico. In Puerto Rico consumers are forced to pay up to $0.27Cents/LWh, almost three times more than the average American household. 14. Since approximately 1970s the public corporation has been utilizing a fuel adjustment charge that is capriciously, unilaterally, arbitrary, unconstitutional, and 2 http://www.indexmundi.com/g/g.aspx?v=66&c=rq&l=en Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 7 of 36 8 violative of the Robinson-Patman Act, codified as 15 U.S.C. 13. The practice has inflicted unconstitutional, and commercial injury upon plaintiff because inter alia- forces plaintiff to pay for subsidies, grants preferential treatment to religious groups, provides for payment of governmental obligations of welfare subsidies to indigent parties, finances political subdivisions (Municipalities) failure of payments, debts services and obligations of the public corporation, and other governmental agencies which do not pay the public corporation for the related consumption of electric power. Provides for different prices to commercial enterprises, over residential process, and sell the like kind product in commerce to individuals and organizations based on social and economic basis unrelated to the actual cost of producing the commodity. The sale of the same product to two or more purchasers at different prices creates the violation of the Robinson-Patman Act codified as 15 U.S.C. 13. 15. The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge, forces the individual plaintiff[s] and all individual consumer[s] of the public corporation to unreasonably and unconstitutionally associate with welfare recipients, religious groups, political associations, and municipal subdivisions which the individual consumer[s] is [are] not forced to associate because the U.S. Constitution under its First Amendment guarantees each citizen and right of free association, a separation of church and state, and to choose what political association to be a member or participate with. 16. Upon best information and belief, the capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 8 of 36 9 individual class members to pay for the following: (1) Finance political subdivisions in a sum of $190,400,000.00 (2) pay for subsidies in residential services in an amount of $29,600,000.00; (3) Pay for churches and other nonprofit associations the sum of $3,500,000.00; (4) pay for finance of tourisms subsidies in the amount of $6,500,000.00; (5) residential subsidies to public housing and public projects in amount of $18,100,000.00; (6) finance and pay for subsidies to industries $9,800,000.00; (7) finance and pay for the development incentive laws for Puerto Rico development $15,015,000.00 3 ; (8) finance and pay for agricultural subsidies in the amount of $1,800,000.00 (other subsidies to the elderly, students public projects of RH3, these include subsidies to persons who receive welfare or nutritional assistance programs); (9) pay for and finance public education electric power in a sum of $90,000,000.00. 17. The United States Congress created The Federal Power Act is a law appearing in Chapter 12 of Title 16 of the United States Code, entitled "Federal Regulation and Development of Power". The act created the Federal Power Commission (FPC) (now the Federal Energy Regulatory Commission) as the electric power regulatory commission. FERC Order No. 2000 at 332 establishes that Competition and Consumer Protection Perspectives on Electric Power Regulatory Reform are the public policy of the federal agency: Focus on Retail Competition organizations to manage reliability, pricing, congestion management, planning, expansion, and interregional coordination are critical to effective wholesale and retail competition programs are essential to the United States. The public policy of the Federal Agency is to promote competition in the generation of wholesale 3 $140,000,000.00 in nine years. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 9 of 36 10 and retail sale electric power to consumers like plaintiff. Defendant PREPA maintains and absolute monopoly over the production, distribution and sales of electric power in Puerto Rico. PREPA denies plaintiff and all Puertorican consumers of the public policy and opportunity to benefit from the federal public policy. In recent PREPA financial publication defendant has admitted to have a strong credit rating because it maintains a complete monopoly (exhibit A) in Puerto Rico. In the same report defendants admits that is strong credit rating is supported by Sole Provider of an essential service; Fuel rate setting Authority; fuel and setting power passed through (exhibit A). It is this over exercise of power that has led defendant to violate the consumers rights under the United Sates Constitution and laws of the United States, by requiring forced association with religious and political parties, and pay for welfare subsidies and benefits to advance other political views of the Government in power through in the fuel adjustment charge formula. 18. As a utility company defendant PREPA is capable of producing 5839 MW of electricity, while most peak at 3404 MW. Established in 1941, a commonwealth government public corporation, PREPA ranks fifth among the largest public power-utility companies in the U.S. in terms of megawatt-hour (mWh) sales, just behind the Los Angeles Department of Water & Power, and first in terms of electric revenue. 19. With over 1.8 million customers residential clients accounted for 34.6% of PREPAS electric-energy revenue, commercial $1.17 billion or 45.1%, industrial 17.1, for a total of over $4 billion in electric-energy revenue in fiscal 2009. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 10 of 36 11 20. The commonwealth government is PREPAS largest client. The public sector, which is comprised of the central government and its public corporations and municipalities (included primarily in the commercial category), accounted for 12.1% of kilowatt-hour (kwh) sales and 13.7% of revenue from electric-energy sales for the 12-month period ended Dec. 31, 2004. 21. Public hearings are required before setting permanent rates, with final approval vested solely within PREPA. Puerto Rico Law No. 21, approved May 31, 1985, provides uniform procedures for public hearings and review of the actions of certain public corporations in connection with rate changes set by such public corporations. The law also authorizes the Legislature by resolution to review rates of certain public corporations, including PREPA. At the request of another public corporation under Law 21, the justice secretary has rendered an opinion to the effect that it doesnt grant veto power to the Puerto Rico Legislature over rates properly adopted by such public corporation. Since 2004 11% of PREPAS gross electric-energy sales are being used by the utility to fund its government-subsidy programs, to pay contributions in lieu of taxes to the municipalities, to finance the utilitys capital-improvement programs, and for other purposes. In 2009 PREPA gave in form of contribution (in lieu of taxes) the sum of $224,792,000.00 and charged its customers the sum as part of the fuel adjustment charge which in 2009 account for 73% of the revenues of PREPA. This assessment of contribution is a form of taxation upon electric consumers which PREPA is not authorize to asses as part of the fuel adjustment formula. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 11 of 36 12 22. The increase in the purchased power adjustment revenue and expense of $24.9 million and $21.9 million, respectively, was due to an increase of 243,159 MWh (or 3.6 percent) purchase power for fiscal 2010 when compared to fiscal 2009. The increase in the purchased power adjustment revenue and expense of $6.9 million and $10.8 million, respectively, was mainly due to an increase of 1.0 cent (9.9 percent) per kWh in the average price of purchased power for fiscal 2009 when compared to 2008. The increase in the purchased power adjustment revenue and expense of $36.8 million and $36.4million, respectively, was mainly due to an increase of 312,676 MWh (4.5 percent) purchased power for fiscal 2008, when compared to fiscal 2007. See audited financial statement. In the audited financial statements from PREPA it is clearly established that liabilities ($9,184,621,000,000) exceed assets ($9,081,005,000,000) and the fuel adjustment charge is used to support government expending unrelated to the cost of fuel, amounting to the consumer of electric power into unconstitutional taxation. In 2010 PREPA provided the central government with $224,792,000.00 in lieu of taxation. This amount was assessed against the fuel adjustment charge as a form of unauthorized taxation to support the political goals of the Commonwealth of Puerto Rico, resulting in a financial bankruptcy of the public utility for on related utility business 4 . 4 http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Annual%20Reports/Final%202010%20F S%20PREPA.pdf For fiscal year ended June 30, 2010, as compared to June 30, 2009, Net Assets decreased by $142.8 million. The reduction in Net Assets was mainly due to an increase in operating expenses of $171.9 million, mainly due to increases of $38.9 and $37.8 in the Administrative and General and Depreciation Expenses, respectively, as well as increases in Interest Expense and Contribution in Lieu of Taxes. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 12 of 36 13 23. In the month of August 2011, the individual Plaintiff was forced to pay a fuel adjustment charge [for fuel purchased in interstate commerce there is no production of oil of fossil fuels in Puerto Rico] in the amount of $0.208515, or $0.21 per kilowatt hour, this rate was in addition to the standard rate of $.037693 per kilowatt hour. When comparing the fuel adjustment charge with other public municipalities in the United States, defendant PRPA charges unreasonable amounts of fuel adjustment charge. When compare with Public Utility Harrison County Utility a cost of $0.09 is the published rate for that public utility corporation, when comparing fuel adjustment rates with Anderson Municipal the rate of the Municipal Corporation is $0.87 per kilowatt hour. Defendants fuel adjustment rate exceeds more than double the rates of similar municipal utilities which are forced to purchase the same fuel in the open market. When comparing fuel adjustment charges with other jurisdictions we find that defendants have not protected plaintiff equally under the law because through the United States fuel adjustment charges charged by defendants are disparate with the reality of the fuel market. The National Residential Consumer Bill for others Municipal Utility Corporations established the capricious and unreasonably fuel adjustment charges with culminates in unconstitutional taking, association and equal protection: JURISDICTIONAL ELECTRIC UTILITY RESIDENTIAL CUSTOMER BILL SUERVEY [July 1, 2011 Billing] By Utility Name and Type kWH Consumption Overall MUNICIPAL UTILITIES 500 1000 1500 2000 Ranking* Anderson Municipal $ 51.88 $ 93.92 $ 135.95 $ 175.78 13 Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 13 of 36 14 Auburn Municipal 36.32 67.63 98.95 130.27 22 Columbia City Municipal 53.23 98.41 143.59 188.76 9 Crawfordsville Municipal 52.97 90.95 128.92 166.90 14 Frankfort Municipal 46.53 82.79 119.04 151.00 21 Kingsford Heights Municipal 49.16 94.82 140.48 186.13 11 Knightstown Municipal 49.43 94.25 134.77 175.29 12 Lebanon Municipal 47.48 88.18 125.09 161.99 18 Logansport Municipal 59.69 110.57 159.03 206.49 6 Mishawaka Municipal 47.22 84.45 121.68 158.90 20 Peru Municipal 51.34 96.10 139.25 182.41 10 Richmond Municipal 52.35 89.16 125.97 161.04 15 Tipton Municipal 47.16 88.32 127.19 166.06 17 COOPERATIVE UTILITIES Harrison County REMC $ 69.51 $ 115.09 $ 156.75 $ 198.40 3 Jackson County REMC 65.51 113.02 160.53 208.04 5 Marshall County REMC 83.50 147.50 200.00 252.50 2 Northeastern REMC 66.25 114.06 161.86 204.16 4 INVESTOR OWNED UTILITIES Duke Energy Indiana $ 62.81 $ 104.61 $ 141.53 $ 178.49 8 Indiana Michigan Power D/B/A AEP 45.72 84.65 123.57 162.50 19 Indianapolis Power & Light Co. 55.68 88.86 122.03 155.20 16 Northern Indiana Public Service Co. 58.56 110.37 162.17 213.98 7 So. Indiana Gas & Electric Co. D/B/A Vectren 83.05 155.10 227.15 299.20 1 *Overall Ranking based on Total Rate at 1000 kWh consumption. SPECIFIC ALLEGATIONS 24. The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all individual class members to associate with municipalities that do not pay for the electric service. On the last annual reportage of $190,400,000.00 is the amount believed to have been charged the individual consumer who neither desires to associate with a municipal Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 14 of 36 15 corporation[s] nor is required to finance the political subdivision or existence, or even associate with public housing (residenciales publicos). 25. The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all individual class members to associate with political goals and views of providing subsidies to public housing which has traditionally become zest pools of crime and violence, while good citizens are sometimes force to live in such housing, the individual consumer is guaranteed by the First Amendment a right not to associate with such subsidies. In particular the published fuel adjustment factor: FCC ($/kWh) $/BBL BBLS estimados Ajuste C 0.89 includes factors that contain further factors that included payments to the central government payments and political subdivisions such as Municipalities. These factors have an unconstitutional result which forces association with the payments of subsidies to indigent and or welfare recipients, political association pay the finance of political subdivisions, and agencies of the state, creates a de facto taxing authority without legislature power to tax, and take property (individual monies) without just compensation. The multitude of discriminatory tariff and aid to welfare projects at the cost of the individual consumer create violation of the Robinson-Patman Act 15 U.S.C. 13, by assessing different rates in commerce for the same like commodity (electricity) 5 . 5 Electricity is a commodity for purposes of the Robinson-Patman Act, amending this section and adding sections 13a, 13b and 21a of this title. Borough of Ellwood City, Pa. v. Pennsylvania Power Co., W.D.Pa.1983, 570 F.Supp. 553. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 15 of 36 16 26. The basic residential rate [GRS] as published by the defendants includes $ 35 for the first 425KWH and $4.97 for additional kWh. When comparing this rate to the special residential rate [LRS] (given to indigents and public housing recipients) the rate is reduced for the same basic like kind commodity to a rate of $1.46 for the first 425 kWh, an $18.00 maximum charge for cost of barrel of fuel, costing today in excess of $80.00, and after consumption of 425 kWh there is a 100% Negative adjustment, thus providing the cost of the commodity for all electricity used or consumed in excess of 425 kWh to the paying consumers restricting trade, price determination, quantity of output, terms of transactions and unreasonable restrained of trade. 27. The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all individual class members to associate with churches which are separated by the First Amendment from go The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all individual class members to associate with religious groups which are not the religious belief of consumers who must nonetheless pay and finance the fuel adjustment charge. 28. The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all individual class members to associate with the finance of industries such as tourism, finance income producing entities such as hotels, governmental agencies, political groups and projects. 29. The Agricultural gross domestic product in Puerto Rico accounts for less than one (1%) of the gross domestic product of the Island. Defendant in violation of the Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 16 of 36 17 Robinson-Patman Act provide a subsidize rate to agricultural services (GAS) these consumers pay less than $0.054 per Kwh, and others consumers must pay for the cost of subsidy paying consumers restricting trade, price determination, quantity of output, terms of transactions and unreasonable restrained of trade. 30. The rates charged for parks is [LP-13] $0.0900 cents per Kwh for the first kWh. In cases where these parks are owned by a municipality the subsidize payment is generally not collected and forced to be finance through the fuel adjustment charge. Consumers must pay for the cost of subsidy restricting trade, price determination, quantity of output, terms of transactions, enhancing the monopoly, and unreasonable restrained of trade. 31. The street and highway [PLG] is charged at $0.07 cents per kWh to the appropriate Government agency who in turn does not pay for the service and places a financial burden upon the individual consumer who must pay the burden of the highest rate charged by defendants, and the loss of electric power when payment is not made. Consumers must pay for the cost of subsidy restricting trade, price determination, quantity of output, terms of transactions, enhancing the monopoly, and unreasonable restrained of trade. 32. The capriciously, unilaterally, arbitrary, and unconstitutional formula and adjustment charge forces the plaintiff and all individual class members to pay and finance subsidies, political groups churches, because the fuel adjustment charge requires each individual consumer, like plaintiff, to finance these governmental projects, the same is a taking under the takings clause of the U.S. Constitutions, which is not for public use, and does not provide for just compensation. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 17 of 36 18 33. The Low Income Home Energy Assistance Program (LIHEAP) received federal funding of $5.1 billion in Fiscal Year 2009. It is funded mainly by the federal government through the U.S. Department of Health and Human Services, Administration for Children and Families, and is administered by states and Puerto Rico. LIHEAP offers financial assistance to qualifying low-income households who require support in paying their home heating or cooling bills. The capricious fuel adjustment charge requires plaintiff to pay for these subsidies when there are federal programs that already account for these subsidies and the payment of subsidies is a form of taxation when the defendant public corporation has no taxing authority. The public housing residential rate [RH3] the rate is fixed at $2.00 per client with a 100% credit for consumption of electric service over 425Kwh. There is also a maximum $0.033 charge for each Kwh in excess of 425Kwh. This rate results in an unequal, discriminatory, unconstitutional finance and association with welfare, and with the nexus and assistance to certain drug points which locate themselves in these privilege/subsidize locations throughout Puerto Rico. Consumers must pay for the cost of subsidy restricting trade, price determination, quantity of output, terms of transactions, enhancing the monopoly, and unreasonable restrained of trade. 34. In the 2010 financial PREPA audited financial statements PREPA admits that PREPA spent $ 2,006,000,000.00 purchasing of fuel. The fuel adjustment charge generated 72% of revenues of $4,170,000,000.00 or $3,000,000,000.00 for PREPA establishing an increase over one billion dollars in excess of the actual Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 18 of 36 19 cost of fuel 6 . It is the billion dollars in excess of costs that has gone to pay the unconstitutional religious and welfare and government subsidies and association, creating a de facto taxing authority to pay for theses political goals of the Commonwealth of Puerto Rico. These excess charges and payments to the Commonwealth in lieu of taxation violate the purpose and reason for which PREPA was created, i.e. to provide the most efficient electric power to the consumer have culmination in unconstitutional violations and restriction in trade by enhancing the monopoly to sell electric power in Puerto Rico. 35. During the relative period of time from 2008 to 2011, the defendant PREPA had an executive director (Angel Cordero). During the relative period of time in 2011 Mr. Angel Cordero after making payments to the Central Government of $232,431,000.00 gave his closed associates and employees a 50% salary increase resulting in millions of dollars in salary costs to chosen employees thereby increasing the fuel adjustment charge to consumers. These excessive salary increases were predatory non market related price increases that violated the Robinson-Patman Act. The payments of $232,431,000.00 placed the defendant PREPA in a bankrupt position because its liabilities exceeded the assets, expecting only to increase the cost of the interstate purchase fuel to produce electricity to its consumers when these financial transactions beard no free market economic purpose. Upon political pressure the executive director resigned and was replaced (within 24 hrs.) with Mr. Antonio Escudero, who had directed the Puerto Rico Ports Authority. During the tenure of Mr. Antonio Escudero at the 6 http://www.aeepr.com/INVESTORS/DOCS/Financial%20Information/Annual%20Reports/Final%202010%20F S%20PREPA.pdf Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 19 of 36 20 Puerto Rico Ports Authority had compiled over $50,000,000.00 dollars in unpaid subsidized electric consumption and had not paid their share of consumed electricity. Upon review of Mr. Alberto Escudero background, the public and the board of directors learned that the now Executive Director had have an incident in 2006 where a devise to alter the measuring of expenditure of electricity had been found at his domicile in Dorado, Puerto Rico. The board of directors terminated the 36 hour tenure of the political appointment to lead the public utility. SPECIFIC ALLEGATION VIOLATIONS OF THE ROBINSON-PATMAN ACT CODIFIED AS 15 U.S.C. 13 36. The defendants purchases in interstate commerce barrels of fuel which in turn the convert to the commodity of electricity. The electricity is delivered in commerce to over 1.8 customers which the defendant maintains an absolute monopoly for the sales and purchase of electricity. The defendant PREPA formulates unilaterally the fuel adjustment price for the fuel purchase from outside of Puerto Rico. 37. The defendants formulate several tariffs that is/are discriminatory because it provides for different rates to social and economic groups not based on the cost associated with the production cost but discriminatory based on political and social goals of the central government. When congress, through enactment of the Robinson-Patman Act 15 U.S.C. 13, sought generally to obviate price discrimination practices threatening independent consumers, merchants and businessmen, presumably, from whatever source, and intended to assure, to the extent reasonably practicable, that businessmen at the same functional level would start on equal competitive footing so far as price was concerned. The Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 20 of 36 21 section forbidding price discriminations where effect may be substantially to lessen competition or tend to create a monopoly in any line of commerce was originally enacted to curb use by financially powerful corporations like defendant PREPA to localized price cutting tactics which impaired competitive position of others like plaintiff and the class or consumers represented. 38. Pursuant to 15 U.S.C. 13(a) it shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities [fuel/electricity] of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them: 15 U.S.C.A. 13. The tariffs charge for deferent types of customers receiving like kind electric service over those commercial rates, and those subsidized rate are tantamount to violation of the Robinson- Patman Act. Plaintiff in the instant case is charging, and has charged, higher residential rates than those charges to public housing, customers receiving financial aid or political subdivision which are prohibited from charging or assessing a tax against another governmental agency. Similarly, defendant is Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 21 of 36 22 charge a rate that discriminates over commercial users of the same commodity (electricity) and industrial users. Similarly, the Act prohibits (e) Furnishing services or facilities for processing, handling, etc. It shall be unlawful for any person to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms. 39. The advertised rates for defendant PREPA are as follows: MONTH RESIDENTIAL COMERCIAL INDUSTRIAL JUL 2011 27 /kWh 28 /kWh 24 /kWh JUN 2011 28 /kWh 29 /kWh 24 /kWh MAY 2011 26 /kWh 27 /kWh 23 /kWh A review of the advertised rates establish -at a minimum- that the rate deferential between tree different types of identical commodity purchasers. Providing industrial rates, beneficial rate over residential rates, over commercial rates, for the same like product delivery in commerce of kilowatt hour of electricity 7 in commerce, that is, that either, that there has been discrimination in price between different purchasers of products of like grade and quality electricity, and that effect of discrimination has substantially lessen compensation and tend to create monopoly over the sale of electricity. 7 http://www.prepa.com/spanish.asp?url=http://www.aeepr.com/CALENDARIO.ASP Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 22 of 36 23 40. The defendants provide beneficial rates to religious groups; socially economic rates for public housing and government rates are not posted but are maintained by the monopoly. The last rates for these tariff were made effective the year 2000. 41. The defendants violate the Robinson-Patman Act by -inter alia- stating that since 1989 the standard rate charge is a fixed rate from which the defendant pays their entire fix operating costs adding only the cost of fuel as the differential cost. This is false because the audited financial statements of Earnest & Young for 2010 establish that the majority of the revenues derives from fuel adjustment charge and the fuel adjust charged to consumers exceed the cost of fuel by an amount in excess of 1 Billion dollars. 42. Defendant falsely advertises to its consumers that the fuel adjustment rate is a pass-through rate 8 . The fact is that the audited statements establish a gain of over 1 billion dollars over the cost of fuel in revenues (see audited statement June 2010). 43. One example of the unconstitutional predatory and capricious tariffs, restricting trade is the special industrial tariffs given to new industry and expanding industries. Pursuant to state law 111 of July 1986 PREPA is authorize to issue exempt tariffs in lieu of taxes. The practice creates a restriction on trade and a financial burden upon the plaintiff and all consumers of like commodities and electricity who must bear the burden and costs of the fuel adjustment charge to finance the exemptions and taxes for the new or expanding industries. The establishment of exemptions in lieu of taxes is equally an unconstitutional 8 Ajuste por Compra de Combustible: A travs de este cargo la Autoridad recupera el gasto efectuado para la compra y manejo del combustible consumido en las unidades generatrices de la Autoridad. Este es el rengln de la factura que ms vara debido a las fluctuaciones del costo del petrleo en el mercado. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 23 of 36 24 violation of the equal protection under the law and an unconstitutional delegation of taxing authority by the state legislature to the public utility. THE CLASS MEMBERS 44. The first class members are all individual members like plaintiff DUAMEL SANTIAGO-RAMOS who have been charge a fuel adjustment charge that includes subsides, finance, and other benefits to religious, welfare groups, indigent or political subdivision provided economic benefits to these groups and requiring association, and these groups in violation of the U.S. Constitution. 45. Second class members are all who have receive in commerce the commodity of electric service at discriminatory rates over those with beneficial rates in violation of Robinson-Patman Act codified as 15 U.S.C. 13. These include residential consumers that pay over special residential consumers, commercial consumers and industrial consumers that pay in excess of government, and public housing rates. 46. Subclass members are those who were charge commercial rates in excess of the best rate provided to residential consumers and those charged to public housing and other governmental agencies. JURISDICTION AND VENUE 47. The court has original jurisdiction based on Federal question 28 U.S.C. 1331; that is the unconstitutional and discriminatory practices of PREPA in the assessment of the fuel adjustment charge. The court has further jurisdiction pursuant to 15 U.S.C. 13 and 28 U.S.C. 2201. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 24 of 36 25 48. Venue lies in this district, as the facts and occurrences took place in the District of Puerto Rico; All acts events occurred in the Commonwealth of Puerto Rico. I. Numerosity and Definition of the Class 49. Plaintiff Duamel Santiago-Ramos Individually brings this class action in behalf of himself and the following classes: 9 Class a: All individuals who have been billed a fuel adjustment charge by defendant in the Commonwealth of Puerto Rico The Class consists of over 1,000,000 individual consumers who have been forced to pay a fuel adjustment charge that include charges for subsidies, and associations with churches, and other charitable entities, political and municipal subdivisions of the state. The exact number being unknown and unascertainable; therefore, the Class is so numerous that joinder of all members is impracticable; Class b all consumers of electricity who have purchased electricity in commerce paying higher tariffs than those provided to agricultural consumers, or a the best commercial rate as determined by the proof or the jury. II. Commonality 50. This cause of action is predicated on violations of U.S. Constitution, equal protection clauses, the takings clause, and the right of free association and the rights protected under Robinson-Patman Act 15m U.S.C. 13. At all times material hereto the plaintiff petitioners allege and reaffirm that they are members of a class of persons that have been subject to violations of the U.S. Constitution and violation of the Robinson-Patman Act 15 U.S.C 13, and have been injured in business and property as a result of defendants discriminatory electric service fuel adjustment charge and tariffs in Puerto Rico. 9 The class definition may be modified by the Court based on discovery or other factors that can surface throughout the course of the litigation. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 25 of 36 26 III. Typicality 51. The claims of the Plaintiffs are typical of the claims of the Class members they represent as they seek essentially the same relief, namely damages in business and property resulting from the defendants fuel adjustment charge and discriminatory tariffs that include subsidies to political subdivisions, churches, charitable institutions, and welfare subsidies to public housing, services and tourism in Puerto Rico, and consumers who have been charge discriminatory tariff by defendant in violation of the Robinson-Patman Act. IV. Adequacy of Representation 52. Plaintiff Duamel Santiago-Ramos, Individually is a plaintiff representative of citizen and consumers that have been injured in business and property as a result of the violation capricious, arbitrarily, unconstitutional assessment of charges to support political affiliations, subsidies to churches, other charitable entities, political and municipal subdivisions of the defendants, who have been charge discriminatory tariffs by defendant in violation of the Robinson-Patman Act. V. Plaintiffs Meet the Requirements of Rule 23(b)(1)(A) 53. This action is maintainable under Rule 23(b)(1)(A), Fed.R.Civ.P., because the prosecution of separate actions by individual members of the Class would create a risk of inconsistent or varying adjudications with respect to individual members of the Class which would establish incompatible standards of conduct for Defendants. VI. Plaintiffs Meet the Requirements of Rule 23(b)(3) 54. Certification is also appropriate under Rule 23(b)(3), Fed.R.Civ.P., because: A. Common issues predominate where the exact same issues will apply uniformly to each class member seeking injunctive relief; and Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 26 of 36 27 B. A class action is superior because individual class members have no practical interest or ability to bring this action for damages. In particular, there are numerous questions of law and/or fact that are common to the claims of the Plaintiffs and the members of the Class. Among these common questions of law and/or fact are the following: A. whether the class members have no adequate remedy at law; B. whether class members are subject to injury constitutional injury by the fuel adjustment charge that includes subsidies to political subdivisions, churches, charitable institutions, and welfare subsidies to public housing, services and tourism in Puerto Rico, and whether the members of the class have been injured by the violations of the Robinson-Patman Act differential rate charges,. C. whether injunctive relief is appropriate and in the public interest; D. whether equity supports the relief requested in the instant issues. The class action is the superior method of adjudication of this controversy as joinder is impracticable and the case is manageable and can be tried with class wide proof for all members of the Class. Certification is also appropriate under Rule 23(b)(3), Fed.R.Civ.P., because: C. Common issues predominate where the exact same issues will apply uniformly to each class member seeking injunctive relief; and D. A class action is superior because individual class members have no practical interest or ability to bring this action for damages. The class action is the superior method of adjudication of this controversy FIRST CAUSE OF ACTION Violation of the free association clause 55. Plaintiff avers and re-avers all preceding paragraphs, and further states: 56. Freedom of Association is defined as the right of people to meet together to further their common goals. The fuel adjustment charge that inflicts a force association with political and municipal subdivisions of the state, along with the Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 27 of 36 28 association of churches, welfare groups is unconstitutional because it forces the plaintiff to associate by paying for a subsidy to political and municipal subdivisions of the state, along with the association of churches, welfare groups. 57. The forced associations to finance groups which are opposed to the individual consumer are a violation of the freedom of association of each individual consumer. In particular forcing the payment of subsidies to groups would force the individual consumer to repudiate its own belief system of free enterprise system and that each citizen should pay for every service that the government provides. SECOND CAUSE OF ACTION Establishment Clause 58. Plaintiff avers and re-avers all preceding paragraphs, and further states: 59. The Establishment Clause states that Congress shall make no law "respecting an establishment of religion." The clause is generally interpreted to mean three things. 1) That the government may not establish an official religion or denomination and require people to support it or believe in it. 2) The government may not favor in its laws one religion or denomination over another and 3) Government may not favor or disfavor believers or unbelievers in any religion or denomination over any other. By establishing a fuel adjustment charge the includes subsidies to churches and other charitable organizations the Government (PREPA) endorses and requires plaintiff to support a form of religion and to finance and pay for cost to provide the benefit to these religious and charitable organizations. THIRD CAUSE OF ACTION Takings clause 60. Plaintiff avers and re-avers all preceding paragraphs, and further states: Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 28 of 36 29 61. The Fifth Amendment prohibits "private property [from being] taken for public use without just compensation." The application of the fuel adjustment charge by the state own PREPA constitutes a taking from an individual consumer[s] who is [are] not interested in supporting subsidies to political associations, government agencies, or religious entities who receive a subsidy paid by the individual consumers rate and fuel adjustment charge. The taking of the individual consumers money is a taking of property without just compensation. FOURTH CAUSE OF ACTION Violation of due process of law 62. Plaintiff avers and re-avers all preceding paragraphs, and further states: 63. The fuel adjustments charge or rate is determined unilaterally by individual government agents who are interested in remaining as government employees while working for PREPA. These government agents formulate a rate based on the need of the agency to provide for subsidies to churches, political subdivisions, municipalities, welfare recipients, and other governmental needs. As a Governmental political subdivision there is no public hearing, or input to evaluate the fairness of constitutionality of the fuel adjustment charge. The public agency is not vested with the taxing power of the state and by implication of the fuel adjustment charge, the agency of the state is taxing the individual consumers with payment of subsidies to political subdivisions of the state, predicated on the cost of fuel adjustment when in fact and in truth the needs of taxing by the state are open for public hearings and scrutiny. The subsidies which a government must provide are not part of the organic law which created the public agency of the state. These entities, churches, political subdivisions of the state, municipalities Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 29 of 36 30 already have stabled an assigned budget approved by legislature, and included in the governmental budget of the state. FIFTH CAUSE OF ACTION Equal protection clause 64. Plaintiff avers and re-avers all preceding paragraphs, and further states: 65. The Equal Protection Clause of the 14th amendment of the U.S. Constitution prohibits states from denying any person within its jurisdiction the equal protection of the laws. See U.S. Const. amend. XIV. Defendant PREPA has failed to protect Plaintiff[s] under the equal protection under the law by implemental a fuel adjustment charge that is unconstitutional because it forces religious and political associations, and takes property of plaintiff to finance and pay for political associations and subdivision of the state that do not pay for electric service. Similarly, the fuel adjustment charge is made by government workers that implement the fuel adjustment charge without regard to rights of the plaintiff[s] under the U.S Constitution and opportunity for a hearing and due process of law. SIX CAUSE OF ACTION Violation of the Robinson-Patman Act 66. Plaintiff avers and re-avers all preceding paragraphs and further states and prays: 67. Pursuant to 156 U.S.C. 3 (a) Price; selection of customers makes it unlawful for any person entity engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality [electricity], where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 30 of 36 31 any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination. The Robinson-Patman Act is concerned not with efficiency but with the equitable dispersion of business power within a market like Puerto Rico. Section 2(a) of the Robinson-Patman Act condemns price discrimination-two sales of identical goods with equal marginal costs made at two different prices. 68. The Robinson-Patman Act makes it unlawful for any person engaged in commerce to pay or contract for the payment of anything of value to or for the benefit of a customer of such person in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such person, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities. 69. Defendants have violated, are violating, and continue to violate the Robinson- Patman Act by their implementation of different rates for social, economic and political groups setting different tariffs, rates based on social economic and political views of the defendant[s]. It shall be unlawful for any person engaged in commerce to pay or contract for the payment of anything of value to or for the Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 31 of 36 32 benefit of a customer of such person in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, sold, or offered for sale by such person, unless such payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of such products or commodities. 70. One example of the unconstitutional predatory and capricious tariffs, restricting trade is the special industrial tariffs given to new industry and expanding industries. Pursuant to law 111 of July 1986 PREPA is authorize to issue exempt tariffs in lieu of taxes. The practice creates a restriction on trade and a financial burden upon the plaintiff and all consumers of like electricity who must bear the burden and costs of the fuel adjustment charge to finance the exemptions and taxes for the new or expanding industries. The establishment of exemptions in lieu of taxes is equally an unconstitutional violation of the equal protection under the law and an unconstitutional delegation of taxing authority by the state legislature to the public utility. SEVEN CAUSE OF ACTION DECLARATORY JUDGMENT 71. Plaintiffs aver and re-aver all preceding paragraphs and further state: 72. Pursuant to 28 U.S.C. 2201 the court is empower to upon the filing of an appropriate pleading, declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 32 of 36 33 Any such declaration shall have the force and effect of a final judgment or decree and shall be reviewable as such. 73. Plaintiff Caribbean Economic Council respectfully prays to this court to declare the subsidies and predatory tariffs of defendant PREPA unconstitutional and against the Public Policy of the United Sates under the Robinson-Patman Act 15 U.S.C. 15. Declaring that the payment of 11% of contributions in lieu of taxes [as well as the payments in 2007 $ 192,591; 2008 $218,379; 2009 $224,792; and 2010 $232,431] from the operation revenues or profits of PREPA to the Central Government an illegal act as a restriction in trade, free market process in determining price, quantity output, quality, or other important terms of transaction. The United States Supreme Court has articulated classic economic price theory to be the touchtone, the standard for all antitrust analysis which defendants have ignored and continue to ignore. The payments to the Central Government are a further form of illegal unlegislated taxation which the consumer of electric power must assume in the fuel adjustment charge which bears no economic relation to economic price theory. EIGHT CAUSE OF ACTION Violation of the equal Protection Clause Under 42 U.S.C. 1983 74. Plaintiff[s] aver and reaver all preceding paragraphs and further state: 75. This is an action against defendant Marimar Prez-Riera, Chairperson, Board of Directors individually, defendant serves President of the Board of Directors, she is a natural person that manages and controls the Board of Director and is vested Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 33 of 36 34 with the establishment and approval of discriminatory prices and tariffs for the commodity in commerce of electricity and fuel adjustment charges. 76. Pursuant to 42 U.S.C. 1983 every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress. Here, defendant has failed to protect plaintiff under the U.S. Constitution as described under causes of action 1-6 and Eight, Robinson-Patman Act and has failed to protect plaintiff and class members under the Equal Protection Clause of the Federal Constitution to wit the 14th Amendment as against different type of treatment for overcharges, beneficial tariff rates, to certain welfare recipients, religious groups, public housing residents, political subdivisions of the State that consume the same like commodity (electricity) as individual Plaintiff and are receiving beneficial treatment over Plaintiff by -inter alias- receiving subsidies, financing, and other benefits which are not offered to Plaintiff and the class of individual consumer. WHEREFORE, the Plaintiff[s], on behalf of himself [themselves] and the Class, demand the following relief: A. Recover the damages sustained by the individual plaintiffs by payment of fees that support political, religious and other governmental association costs, and the cost of suit, including a reasonable attorney's fee B. After notice and hearing, an Order certifying the Class and any appropriate Subclasses to administer the claims. Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 34 of 36 35 C. An Order appointing Lorenzo Palomares P.S.C., as Counsel for the Class and awarding attorneys fees, pursuant to Federal Law and the rules governing class actions, for the benefit of the Class for said representation; D. Establishing a fund to provide relief for the injury to the class; E. An Order requiring the Agency and its chief/director to cease and desist from further discriminatory and unconstitutional practices. F. An injunction requiring defendant PREPA to stop providing preferential treatment to political subdivisions, agencies of the state, churches and welfare recipients and otherwise providing price discounts and other forms of preferential treatment to some buyers of like kind electricity and not to others. G. Any and all further relief this Board/Court deems just and proper. Respectfully submitted, October 6, 2011
Ramon Rivera Iturbe, Esq. Rivera Iturbe & Assoiates USDC #120156 500 Ave Muoz Rivera, Centro II San Juan PR 00918 Tel. 787- 754-7248
Lorenzo J. Palomares, Esq. U.S.D.C. #218017 Lorenzo Palomares, P.S.C. Attorneys & Counselors at Law 421 Ave Munoz Rivera, Midtown Bld. Penthouse Suite 1001, San Juan, P.R. 00918 Tel (787) 753-7441 Fax (787) 622-2540 Palolaw@gmail.com . Ricardo Izurieta USDC#124205 421 ave Muoz Rivera, suite 1002 San Juan PR 00918 Tel. 787-531-9418 izurieta.ricardo @gmail.com Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 35 of 36 36 NOTICE OF REPRESETATION I hereby appoint the law offices of Lorenzo Palomares to represent the undersigned plaintiff as class representative. I hereby agree to zealously represent the class of plaintiff that has been injured by the defendants in the complaint at large. S,/ Daumel Santiago Ramos DUAMEL SANTIAGO-RAMOS Case 3:11-cv-01987-JAF Document 1 Filed 10/06/11 Page 36 of 36