PSS execs: Prohibit CUC from charging schools late fees

Instead of exempting public schools from paying late fees charged by the Commonwealth Utilities Corp., it would be better if CUC is prohibited by law from charging the non-profit Public School System with late fees.
Board of Education vice chair Lucy Blanco-Maratita and Education Commissioner Dr. Rita A. Sablan told the Legislature this in a recent joint letter as part of their comments on a bill that proposes to exempt PSS from late fees imposed by CUC.

Citing the fiscal challenges faced by public schools, the two education officials urged lawmakers to amend House Bill 18-177 to reflect the recommended changes they desire.

“It will be helpful if the bill did not ‘exempt’ PSS from paying late fees charged by CUC but instead prohibited CUC from charging the late fees in the first place. Since the passage of P.L. 18-19 [which reduced the water and wastewater charges of schools], CUC continues to bill us at the government rate. Although we only remit payment based on a commercial rate for water and wastewater, it is us who calculate that amount. This means that our financial department crunches our CUC bills every month to come up with the amount that we actually owe,” stated Blanco-Maratita and Sablan in the letter to Rep. Lorenzo Deleon Guerrero (Ind-Saipan), chairman of the Transportation and Communications Committee of the House.

Because of this billing situation, PSS has to file a protest for each individual bill monthly in order to maintain the position that PSS only owes CUC the commercial rate. This, they said, takes a lot of effort and wastes a lot of PSS’ time.

“If the bill prevented the fees from being charged in the first place, we would save that time and put it to better use,” they said.

Also, it is recommended that stronger language be inserted to protect PSS from CUC charging “other fees” that are basically “late fees” but are called something else.

“In order for PSS to reap the true benefit of this bill, it is imperative that CUC not have any wiggle room to charge PSS with what are effectively “late fees.” This could include surcharges, reconnection fees, or interest on such fees,” they said.

Blanco-Maratita and Sablan also recommended that CUC be prohibited from terminating, interrupting, or disturbing services to PSS because of unpaid fees or unpaid utilities.

“CUC should not be able to use our children’s right to an education as leverage to get money for utilities. This does not mean that PSS will not pay its bills or that it does not intend to pay its bills. Instead, this means that a children’s right to an education will not be used as leverage,” they said, adding that 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 functionality hostage,” they said.

CUC is suing PSS, the Commonwealth Healthcare Corp., and the central government for unpaid bills amounting to $5.9 million inclusive of late fees and interest.

PSS, according to Blanco-Maratita, has every intention of paying what it owes CUC, but it will be a great burden on PSS if late fees are included in the calculation.