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MOUs for public schools’ power debt approved
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Posted on Feb 01 2012
The Commonwealth Public Utilities Commission has adopted the memoranda of understanding proposed by the utilities corporation pertaining to the collection of unpaid power obligations of the CNMI Public School System.
Lone commissioner Viola Alepuyo made the decision during the commission’s last meeting on Friday where she approved two separate MOUs: one between the Commonwealth Utilities Corp. and PSS and the other between the same parties and the administration.
Both MOUs rrelate to the unpaid utility obligation of the school system, a portion of was absorbed by the central government in exchange for the schools’ unremitted budget allotments for fiscal year 2011.
“The memoranda of understanding between CUC, the CNMI government, and the PSS are approved, subject to the condition that they are not materially amended,” stated Alepuyo in her order.
CUC earlier reported that PSS owes $3.7 million in power and water bills as of November 2011. It was initially agreed that the government will absorb $1.5 million of this obligation while the remaining amount will be shouldered by the system.
According to CUC, the Fitial administration has committed to paying it a minimum of $50,000 weekly with no interest. Three payments have already been made as of Dec. 20, 2011, amounting to $150,000.
Under the approved MOU, in case the CNMI government misses any payment of the remainder of the $1.5 million, CUC may pursue any other remedy allowed by law.
CUC, in its separate MOU with PSS, indicated that the system is still liable for the remaining obligation, to be paid at a minimum of $50,000 bi-weekly with no interest. CUC said two payments have already received from PSS.
The proposed MOU, as adopted by the commission, also indicated that CUC will delay the filing of lawsuits for these delinquent accounts so long as PSS is making its current monthly payment.
As of Sept. 30 last year, CUC officials disclosed that the central government and the Public School System topped the list of accounts with large unpaid obligations. A total of 50 demand letters have already been served PSS for its delinquent accounts.
