CUC prods gov’t. to cut utility expenses • Administration’s unpaid utility bills reach $12 million

Rota — The Commonwealth Utilities Corporation has prodded Gov. Pedro P. Tenorio to implement drastic conservation measures in an effort to cut government utility costs amid its failure to settle unpaid bills that now stand at over $12 million.

Despite the governor’s earlier pledge to pay about $1.4 million every month to CUC, finance officials have only offered $250,000 per quarter — a proposal that will not effectively reduce the government overall debt, according to CUC Board Chair Jesus T. Guerrero.

“Utility bills will continue to mount as the proposed payments on the outstanding balance will not be sufficient to liquidate the debt anytime in the near future,” he said in a letter to Mr. Tenorio.

Because of this, Mr. Guerrero called on the governor to carry our energy conservation practices in each department and agency in order to bring down monthly utility costs.

The government is the biggest single customer of CUC, with power, waste and waste water bills running up to more than $1 million each month.

But the CUC chairman noted several complaints from residents of energy waste in public buildings who see “well-lit, empty government office at night, or hear the air conditioner running after working hours.

“We request that each and every government agency be mandated to implement energy conservation measures,” he said, adding CUC can provide pamphlets to offices for saving tips.

The government-owned utility corporation has been negotiating with the Department of Finance to come up with a schedule payment in the settlement.

While the board had approved an easy payment plan, Finance Sec. Lucy DLG. Nielsen has turned it down and instead offered the $250,000-per-quarter compensation.

Bigger problem

CUC officials are expected to go back to the negotiating table next week as they expressed hopes the government will first pay $1.5 million every month for the next six months beginning this June before they agree to the DOF’s offer.

“We will accept any payment made to CUC,” said Executive Director Timothy P. Villagomez in an interview during a board meeting here, “but we are forewarning that this would create a bigger problem to the government as the billings and the payments do not match.”

He also cautioned against the Legislature’s decision to zero out $4 million originally earmarked for government utilities payment this fiscal year, citing its serious impact on CUC’s financial condition that has already been suffering due to rising fuel costs and declining revenues.

Although the governor has maintained that utilities payment is a priority of his administration, he may be forced to approve the proposal contained in the FY 2000 budget as lawmakers had pressed for that money to meet the funding requirement for Rota and Tinian municipalities.

Mr. Villagomez said it is a major concern for CUC in its effort to run the public corporation in a business-like manner as provided under a partnership agreement between the Commonwealth and the U.S. Department of Interior.

“We are rightfully doing that, but at the same time you have this government branch taking that away from you,” he said.

Cutting off utility services to government buildings remains an option as suggested by some quarters, but CUC officials are wary about doing that since they believe the move will not solve the worsening problem.

“CUC is caught in a situation here of whether or not to go drastically on the issue, or try to work closely with the government,” said the utility chief. “If CUC is being ran by a private company, it will definitely shut everything down.”

The Teno administration has been unable to meet several of its financial obligations, which also include retirement share for its employees, due to the huge liabilities it inherited from the previous administration and worsened by the economic crisis that hit the island in 1997.