‘Other gov’t agencies also got disconnection notices’

It’s not just the Commonwealth Healthcare Corp. and Department of Public Works that received disconnection notices. Several other government agencies have also received disconnection notices due to unpaid power and water services.

Acting Commonwealth Utilities Corp. executive director Dr. Dallas M. Peavey Jr. disclosed Friday that they are sending disconnection notices not only to CHCC and DPW, but also to all accounts that are in arrears.

This developed as Peavey also revealed in an interview that he, Gov. Arnold I. Palacios, Commonwealth Healthcare Corp. chief executive officer Esther Muña, and others met last Tuesday to come up with a mutual agreement to resolve CHCC’s unpaid power and water services amounting to $53.6 million.

The CUC board of directors met Friday morning and on the agenda was the CHCC and CNMI government’s payment agreement for CHCC’s utility services, but the board discussed it in an executive session.

Dallas M. Peavey Jr.

In an interview with the media shortly before the executive session, Peavey stated that they are mandated by law and the U.S. Environmental Protection Agency to collect arrears until it’s been set as receivables.

“It’s a mandate by the EPA that we must collect to be able to fund our operations and maintenance. And so that’s what we’ve done to go out try to make the collections,” he said.

When asked which agencies and how many agencies owe CUC for utility services, Peavey said he does not have the listing in front of him but that each one is getting a disconnection notice. “Those who haven’t gotten it will get it today [Friday],” he said.

Peavey said they absolutely want to settle with CHCC and that Palacios was “very kind” to sit for two and a half hours during their meeting with CHCC last Wednesday.

“So we want to come to some kind of mutual agreement that is beneficial to all the parties,” he said.

Peavey said they never want to disconnect anybody, but in the case with CHCC and DPW, they have no choice as they are mandated by the federal government.

Peavey issued notices of disconnection to CHCC and DPW last Wednesday afternoon due to unpaid power and water services amounting to $53.6 million and $1.2 million as of March 31, 2023.

In his demand for payment, Peavey informed CHCC chief executive officer Esther Muña and acting DPW secretary Ray N. Yumul that service will be terminated on May 4, 2023—14 days from the date of the notice—if payment or settlement is not made.

Peavey said the continued delinquent status of CHCC and DPW has adversely impacted CUC’s ability to provide reliable uninterrupted services to the community and adds to CUC’s already struggling financial health.

Yumul earlier stated that DPW has always promptly processed payment requests with the Department of Finance when DPW receives its utility bill from CUC.

As of press time, Saipan Tribune was still awaiting comment from Muña.