PSS: Prohibit CUC from charging late fees in the 1st place

The Public School System and the State Board of Education have forwarded their comments to the Senate regarding House Bill 18-277, which would exempt PSS from late fee charges imposed by the Commonwealth Utilities Corp. for utilities, water, wastewater, and other related fees.

“We have every intention of paying our CUC bill on time, but as this bill states, the Department of Finance is sometimes delayed in paying us our allotments. In those cases we often have to make impossible decisions on who we should pay and when. Knowing that we will not be penalized for choosing our students is of great comfort,” board chair Herman T. Guerrero and Education Commissioner Dr. Rita Sablan stated in their letter to Sen. Jovita M. Taimano, who chairs the Senate Committee on Fiscal Affairs.

The officials also cited the maintenance-of-effort money PSS is currently owed by the local government. As reported earlier, an estimated $9 million to $11 million is owed PSS.

“These funds would pay our outstanding CUC balance in full. …This bill does not address [the MOE] but I am thankful for your effort in keeping our financial situation in mind,” the letter states.

PSS has been sued in the past for unpaid utility bills, late fees, and interest in the amount of $5,936,931.55.

The education officials attached to the letter a previous note they sent the House of Representatives that includes suggestions for amendments to the bill’s language.

At a board meeting last week, BOE legal counsel Tiberius Mocanu said these suggested amendments would prevent CUC from working around the language of the law by charging different kinds of fees, for example, for late payment.

The two officials want to change the bill’s language by prohibiting CUC from charging late fees in the first place, instead of just exempting PSS from paying late fees.

The letter also cited Public Law 18-19, which strictly forbids CUC from billing PSS for water and wastewater at the government rate.

According to the letter, CUC has continued to bill PSS at the government rate.

The letter also suggests “stronger language” to prevent the charging of “other fees” that are basically “late fees.”

The letter suggests CUC be prohibited from terminating, interrupting, or disturbing service to PSS because of unpaid fees or unpaid utilities.

“Although CUC has not resorted to this action yet, it is available to them and should not be. …CUC will continue to have access to the courts and will continue to be able to sue and collect money for what it is owed. What it will not be able to do is hold PSS functionally hostage,” the letter states.