Previous Story
CUC: Govt payments up but still behind
|
Posted on Jun 16 2004
The Commonwealth Utilities Corp. said its collection from the central government was up $1.75 million in April compared with the same period last year. However, the government is still behind its payment schedule.
“Although collections from the government are ahead of last year, government payments are less than current billings,” said CUC acting comptroller Ed Williams in a report.
He noted that, as soon as CUC advised the government last April of disconnection of accounts, the government asked the court for a temporary restraining order. The petition was granted. The TRO remains in effect until Sept. 1, 2004.
During this time through August, the government has agreed to pay CUC a total of $1.95 million, with a minimum payment of $500,000 during any given month.
Overall, Williams said that CUC’s collections for utilities as of April 2004 reached $37.7 million, which is $2.7 million greater than its collection during the first seven months last year.
He said collections from residential and commercial customers went up by $950,000.
Earlier, CUC reported over $31 million in receivables, including $16.2 million—or 53 percent—from the government and $14.5 million from residential and commercial customers.
Of the $14.5 million due from residential and commercial customers, CUC estimates that about $8.6 million or 58 percent is uncollectible.
CUC disclosed last week that it is currently studying a fuel adjustment charge for its electricity rates following projections that the utility firm’s fuel expense this year would overshoot by $7 million to $8 million.
CUC had budgeted $31 million for fuel expenses for FY 2004, but due to increases in fuel prices, expenses would balloon to $39 million.
“This large difference cannot be set-off entirely by reprogramming funds within the budget,” said Williams.
As a result, the utility firm is now looking at the possible implementation of rate adjustments.
“I’m requested that I gather information pertaining to the development and implementation of a fuel adjustment charge for possible inclusion as an add-on to CUC’s rates for electricity,” said Williams.
