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DPL settles long-time utility arrears; $327K paid to CUC
Commonwealth Utilities Corp. executive director Alan W. Fletcher disclosed yesterday that the Department of Public Lands has agreed to settle its long-time arrears with the utilities company.
A check worth $327,429.47 was turned over last week to CUC officials, representing the land agency’s unpaid obligation for eight years covering the period of August 2005 through September 2012.
DPL records disclosed that the payment represents arrears for power amounting to $322,961.65 and for water, $4,467.82.
Saipan Tribune learned that DPL originally owed $361,065.92 covering eight years. However, after a reconciliation of records, the debt was finalized at $327,429.47—a reduction of $33,636.45.
Public Lands Secretary Pedro Tenorio disclosed to CUC board chair David J. Sablan in a June 17 letter that payment was made to CUC in acknowledging the “findings” of a legal memorandum issued in 2005 by the Office of the Attorney General.
Saipan Tribune learned that in the days of the Marianas Public Lands Authority, an “Agreement for Designation of Use of Public Domain Lands” was entered into by CUC and MPLA, which involved the conveyance of a parcel of public land for CUC’s use.
According to Tenorio, in return for this conveyance, CUC agreed to essentially waive all utility charges to DPL. A subsequent legal memorandum disputed this arrangement, describing it as inappropriate.
“My predecessors resisted paying CUC citing the memorandum as valid. I disagreed, based on my review of the legal memorandum prepared by assistant attorney general Alan J. Barak, dated Dec. 15, 2005. Thus, I have made the decision to implement the findings of that legal memorandum,” Tenorio said.
As a result of the analysis by both DPL and CUC accountants, DPL decided to pay the arrears in full without late payment fees.
