Teno: Each gov’t agency must shoulder utility cost

Due to increasing utilities costs of the government, Gov. Pedro P. Tenorio has underscored the need to change the present system where the budget of the executive branch covers payment of the power, water and sewer needs of all departments and agencies.

He said a new scheme in which each branch of government is responsible for its own utilities costs, must be put in place to encourage public offices to conserve energy.

At present, the executive branch, while cornering the biggest chunk of the fiscal budget, pays for almost every office in the government including the Legislature, the judiciary, departments as well as autonomous agencies such as the Public School System, the Northern Marianas College and the municipal offices on the three islands.

“This system needs to be seriously re-evaluated, so that each branch of government is responsible for its own utilities costs, and these are included in their respective budgets,” the chief executive said in a letter to presiding officers of the Legislature.

“We believe that this will be a powerful incentive for each branch of government to reduce utilities costs,” added Mr. Tenorio.

He made the call in light of mounting debt incurred by the government to the Commonwealth Utilities Corporation as a result of having been behind in paying its electricity and water bills.

The government-owned utility firm has been trying to seek payment since late last year for over $10 million in overdue charges. To help ease the financial burden, CUC even cut its government power rate from 20 cents to 16 cents per kilowatt-hour.

Since 1997, utilities costs of public offices have steadily risen from $7 million four years ago to $10 million last year. Despite this trend, the government only allots a small fraction of the budget to pay its bills.

For his proposed FY 2001 budget, Mr. Tenorio has earmarked $4 million — the same level appropriated during the previous year’s spending package.

“[W]e must all work together in conserving energy. Our increased resources can not be allocated to pay for the rising cost of our utility expenses,” he said.

Last week, the Senate proposed wiping off $4 million from the FY 2000 budget proposal to augment share of Rota and Tinian municipalities, as well as scholarship and medical referral programs.

The move reportedly was backed by CUC officials on condition that any surplus revenues to be collected this year will be used to settle utility bills of the government.

There was no immediate reaction from Mr. Tenorio on the Senate proposal which will still need approval by the House as it was made as an amendment to the budget bill.