Gov’t, CUC meet to reconcile billing records • Administration sees sharp drop in what is actually owed to utility corporation

The government is disputing utility charges in some departments and agencies that are now under review by both the Commonwealth Utilities Corp. and the Department of Finance, according to administration officials.

But they wouldn’t say how much of the estimated $12.2 million that CUC has claimed they owed are being questioned, other than indicating that there would be “drastic change” in the amount once records are reconciled.

They also declined to disclose which funding sources they would tap to settle the debt which has accumulated since late 1997 just before the continuous financial difficulties confronting the government began.

Under the proposed FY 2001 budget package, about $4 million have been set aside to cover utility expenditures for the next 12 months — the same level appropriated in the past two fiscal years.

CUC said the government continues to run power, water and sewer billings of at least a million dollar per month, although conservation measures have been implemented by the governor in a bid to bring down the costs.

Finance Sec. Lucy DLG. Nielsen and CUC Executive Director Timothy P. Villagomez began discussion yesterday to settle the unpaid utility bills following threat of power disconnection to several public offices.

The administration is contesting CUC’s records before it works out a payment schedule to reduce the mounting financial obligation, said a key finance official.

One of the issues expected to be brought up in the negotiating table is the discrepancy in some of the billings which the administration claimed are not appropriate considering the number of staff and employees in these offices.

In an interview with reporters prior to the meeting, Ms. Nielsen maintained some agencies are being charged a flat rate by CUC every month, although their consumption has decreased in recent months.

She expressed support for a proposal to install metering device so that these offices would be able to monitor their usage as she added they should also be made to shoulder their own utilities expenditures.

The government-owned CUC has moved to step up pressures against the Tenorio administration after earlier attempts to collect fell in deaf ears.

Although it has long been an option, it’s only now that it is leaning in favor of power shutoff as its financial shape continues to suffer amid rising fuel prices and dwindling revenues.

The utility disconnection, which will cover non-essential departments and agencies, could take place before the end of October if CUC and DOF fails to strike an agreement over a payment schedule.

Utility officials have proposed immediate payment of half of the debt before agreeing to Ms. Nielsen’s counteroffer of $250,000 quarterly payment.