Utility corp. renews plea for $12-M unpaid gov’t. bills

Because of its impact on future plans and infrastructure projects, the Commonwealth Utilities Corporation has pressed anew its effort to collect over $12 million owed by the government in unpaid utility bills.

Board Chair Jesus T. Guerrero wrote a letter to Gov. Pedro P. Tenorio as recent as two weeks ago, reiterating the need to settle the debt through a payment schedule offered months ago by the government-owned corporation.

“I wrote a letter… requesting assistance for the matter to be resolved because we can’t continue shouldering the government’s [utility expenses,” he told reporters in an interview yesterday. “How badly we need that money.”

The chairman urged the Tenorio administration to work out on the payment schedule and begin remitting money to CUC “a little higher” than the $250,000 monthly payment forwarded by the Department of Finance.

Utility officials have been seeking payment of at least $1.5 million for the next six months in order to cut the outstanding balance by half before agreeing to the $250,000 quarterly payment offered by finance officials.

Although CUC has received assurances that the government would soon settle its financial obligation, Mr. Guerrero said he wants the issue to be discussed between both parties and in “black and white.”

He also added that they will insist on original proposal for settlement so that “we feel comfortable.”

CUC Executive Director Timothy P. Villagomez also acknowledged the need to push the matter since the board has been “very patient and understanding” to give time for the government to seek funding.

“But it has reached a point right now where the board has to make a drastic decision on what to do because we can’t allow this thing to continue to grow,” he said in a separate interview.

“Be mindful that a lot of the projects and a lot of planning and decision we have been making are put on hold because of the fact that we don’t have the financial resources right now, primarily because the government has not been paying its dues,” added Mr. Villagomez.

Big issue

He disclosed that CUC still seeks negotiations with DOF, but that it should take “a different step right now and seriously sit down and come up with payment schedule.”

While the administration has made several payments in the past, the amount is not enough to reduce the arrears or even cover monthly billings that run to as much as $1 million.

“The outstanding amount is the big issue here. We ought to get the money so that we can start implementing our projects,” said Mr. Villagomez.

Mr. Tenorio has in the past reiterated his commitment to pay the CUC obligations and has implemented conservation measures to ensure that power and water consumption of all public offices is kept to a minimum.

He has also asked the Legislature to approve a measure in the budget bill in which the executive branch will no longer shoulder all utility costs of the entire government system as in the past, but allow each department and agency to pay for their own billings.

“If everyone sticks to conservation measures and work on that within their [utility needs], it will be better than making the governor take the whole responsibility,” said Mr. Guerrero. “Each department will observe austerity to minimize their billing.”

The government has been unable to meet several of its obligations, such as its retirement share, due to the financial difficulties confronting the CNMI since 1997 as a result of the economic downturn.