Teno to CUC: Gov’t will pay its bills

Gov. Pedro P. Tenorio has reiterated his earlier position to settle over $11 million in unpaid bills owed to the Commonwealth Utilities Corporation in reacting to the lawmakers’ decision to zero out funding for government utilities for the current fiscal year.

He said, however, he has yet to decide whether to accept the FY 2000 budget approved just last Thursday by the Legislature, adding that he is still awaiting transmittal of the proposal to his office.

“Government utilities payment is a priority of my administration,” said in the governor in a brief interview with reporters after attending the public service recognition ceremony at the Legislature on Friday.

Mr. Tenorio was seen in a huddle with lawmakers during the event, including House Speaker Benigno R. Fitial and Senate Vice President Thomas P. Villagomez.

Both chambers passed the proposed $211 million spending package almost eight months into the fiscal year, cutting appropriation to several departments and agencies in order to increase share of key programs, like schools, police, public health, scholarships and medical referral.

They also wiped out the $4 million earlier earmarked for payment of the CUC bills to provide for funding requirement of Tinian and Rota municipalities, although legislators have assured payment if there would be surplus money from the local coffers this year.

The government-owned utility corporation has opposed the move because of its impact on its financial condition as it noted the mounting arrears incurred by the Tenorio administration since it became delinquent in paying its utilities.

Pamela Mathis, chief CUC information officer, has said the Legislature’s action sends a “very harsh signal” to the board which has been under pressure to collect the debt or disconnect the government from its services.

At present, the utility corporation is negotiating with finance officials in a bid to settle the debt, but no agreement has been reached since the administration is only willing to pay between $300,000 to $500,000 a month. Government utilities cost usually runs up to nearly a million dollar each month.

Earlier, Mr. Tenorio has asked the Legislature to pass a measure that will change the current system so that the executive branch no longer shoulders all the utilities costs of almost all department and agencies, including that of the legislative offices.

A new scheme is necessary in which each branch of the government is responsible for its own utilities costs in order to encourage public offices to conserve energy and keep track of their water and power consumption.