Govt to pay for PSS’ $414K CUC bill

The CNMI government will pay for the Public School System’s $414,000 October 2006 bill from the Commonwealth Utilities Corp., PSS acting finance director Lori Grizzard said yesterday.

The CNMI government paid for PSS’ utilities until Oct. 1, 2006, after which, PSS began paying for their own utility usage. The October 2006 bill covers the end of August and beginning of September cycle. She said the Sept. 15 to Oct. 15 bill should also be pro-rated, which would save the school system about $200,000.

The move comes after Grizzard and other PSS officials, including Education Commissioner Rita Sablan, and Tim Thornburgh, PSS Federal Programs director, met with CUC executive director Antonio Muña and CUC financial officials yesterday to discuss PSS’ debt.

PSS and CUC are reconciling another $600,000 that PSS officials believe they have been overcharged. The two agencies are expected to come to a resolution by Monday or Tuesday, Grizzard said.

Muña has said PSS owes CUC $1.8 million in overdue payments. PSS had denied they owed any money until records obtained by the Saipan Tribune showed they owe at least $1.2 million for fiscal year 2008, not including the month of September. To avoid future discrepancies, a monthly reconciliation will take place between CUC and PSS, Muña said.

He said PSS’ payment should be received by next week. The money, along with $1.6 million that is due from the central government, will “help pay for everything,” at CUC, Muña said, including fuel, the Aggreko generators, chlorine and CUC payroll.

A $504,000 payment to Aggreko for the emergency generators is due in one week.

When asked if CUC would have the funds to make the payment, Muña said, “We’re going to pay it. We’ll have the money.”

As long as PSS and the government make the payments, everything should be fine, he added.

“It’s about everybody coming together,” he said. “We are supplying a service, and I think everyone appreciates that now.”

Muña said he continues to communicate daily with Finance Secretary Eloy Inos about the government’s payment.

“He [Inos] knows our situation and problems with operating revenues,” Muña said, adding that the government and PSS must make their payments just like commercial customers.

Inos could not be reached for comment yesterday.

Charles Reyes, press secretary for the Governor’s Office, said the administration knows the government owes CUC money, but like other people, is coping with a financial crisis. Inos knows it is a priority to pay for the generators, Reyes added.

“I think we will be able to make it. Financial matters are always a challenge,” he said, adding that the government did a lot to help CUC obtain the generators. A legislative re-appropriation of money could be a possibility, Reyes said, but he did not want to go into details.

Under the 12-month Aggreko contract, CUC paid an initial $1.5 million and are required to pay $504,000 28 days after the generators were turned on, which was Sept. 12.

Reyes said the administration does not want to breach the contract.

“Our credibility is at stake,” he said. “You’ve got to keep your word.”