CUC board chief wants update on PSS arrears

Although the Commonwealth Utilities Corp. has been giving government agencies what it describes as a “pay in good faith” approach to settle their arrears, the Public School System still needs to update CUC on how it plans to pay off its debt.

The total past due balance owed by PSS to CUC is $7.18 million. This balance represents a principal amount of $6.38 million for electrical, water, and wastewater services and accrued late charges of $807,558. Late charges continue to accrue at the rate of 1 percent per month pursuant to CUC regulations.

PSS’ debt represents 31 percent of CUC’s total receivables from government customers and about 26 percent of receivables from all customer classes (residential, commercial, and government accounts).

According to CUC board chair Dave Sablan Jr., PSS told CUC that PSS will be receiving $6 million from the Legislature, in part, to settle its utility arrears.

Sablan said he wants an update on this $6 million and whether or not it will come out; if not, PSS may then have to come up with an alternative payment plan for the past due.

PSS may get $33.441 million for fiscal year 2015 if the House of Representatives approves the government budget this Thursday.

Sablan said there is also the issue about the differential between the government’s water and wastewater rates versus the commercial rates that PSS is paying.

“We need to see our attorney general’s opinion that [PSS is] correctly interpreting the law since September of last year or they need to present their case to the CPUC in order to get a ruling,” he said.

“They need to be reminded again, otherwise the differential will continue to remain on the books as a receivable,” he added.

Last September, the enactment of Public Law 18-19 mandated CUC to change the water and wastewater rates of public schools from government to commercial. This in effect reduced the charges for its water by 98.4 percent and its wastewater costs by 95.6 percent.

“We cannot write it off until we have clear a direction. Either you give us an attorney general’s opinion that opines that way or the Commonwealth Public Utilities Commission makes a ruling,” Sablan said.

The CUC board chair told CUC executives that PSS must give an update to CUC or CUC will have to create an alternative payment plan for PSS by the beginning of fiscal year 2015.