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Gov’t to pay $800K each month to keep lights on
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Posted on Mar 13 2001
The Department of Finance and the Commonwealth Utilities Commission yesterday hammered out a deal guaranteeing the continued supply of electricity to government offices on Saipan.
However, the agreement proved too late for government offices in Rota and Tinian as the utility company made true its threat to cut electric service to public establishments in the two municipalities.
According to Finance Secretary Lucy Nielsen, the government will pay the CUC a minimum flat-rate of $800,000 a month for the continued consumption of electricity by Commonwealth offices.
“CUC wants a commitment from the government to be able to pay at least $800,000 a month. They want a commitment from us and we will be able to do that,” Ms. Lucy Nielsen indicated.
She said her department will request the Office of Management and Budget for an advanced allotment from the third and fourth quarter budget to pay the monthly commitment to CUC.
The $800,000 pledged commitment just about covers the monthly fees billed to government departments and agencies, which according to CUC Executive Director Timothy Villagomez average some $825,00 a month.
Ms. Nielsen also clarified that her office did not advertently left out Tinian and Rota in payments made to the CUC. She said there was no discrimination because some government offices on Saipan were also threatened with disconnection.
“It was the billing cycle procedure of CUC. They bill on cycles and it so happened that the billing for Tinian and Rota were the ones affected,” she explained.
There are even government offices on Saipan that are due for disconnection today, Ms. Nielsen added. “So how can there be any discrimination.”
The Finance Secretary also exonerated her staff from any guilt in the non-payment of delinquent government debts to the CUC. She said her department regularly pays the bills, pointing out that the only problem was with the outstanding debt incurred by government offices, which dates back from December 1999.
Another reason why the government ended up owing such a large amount of money to the CUC, she said, was also due to the cash shortfall the current administration inherited when it came to office in 1998.
