Gov’t settles $1.1M CUC debt • Agreement clears the way for power restoration on Tinian, Rota

Payment by the CNMI government of its $1.1 million delinquent balance to the Commonwealth Utilities Corporation paved the road for the restoration of power in 99 public offices on Tinian and Rota.

Utility personnel were mobilized to begin reconnection works late yesterday afternoon to ensure complete and uninterrupted operations of government offices on Rota and Tinian today, said CUC corporate communication special advisor Pamela Mathis.

Settlement of the government’s $1.1 million overdue debts was reached after a meeting called in by Gov. Pedro P. Tenorio between CUC and finance officials where an agreement was treshed out to lay the issue to rest.

The resolution was signed by administration and CUC officials to guarantee uninterrupted power and water supply for Tinian and Rota government offices, and to spare Saipan agencies from an impending disconnection.

Finance Secretary Lucy Dlg. Nielsen agreed to forward $800,000 each month to CUC starting next month to prevent further disruption of government operations.

In addition, CUC also urged government heads to place the utility corporation on its priority list of payments and to budget correctly funds channeled for utilities in general.

Further, CUC also withheld disconnection of about 47 Saipan government offices which were earlier identified as delinquent customers and up for power disruption yesterday.

Ms. Mathis said this will be in place until the end of Fiscal Year 2001. CUC also urged the government to identify surplus funds to settle the government’s past due account which amounts to over $12 million.

Ms. Mathis said the governor did not influence any CUC and DOF officials to come up with an agreement and was pleased with the payment agreement.

CUC officials, on the other hand, reiterated that there was no discrimination on the disconnection works done by the utility corporation Monday.

“I tried to help the mayors and people to understand that disconnection were done because no agreement was signed by Finance Secretary and the billing cycle was due,” CUC Vice Chair Laura Manglona said.

Utility services of government offices in Rota and Tinian were ordered disconnected after the 24-hour reprieve given by CUC officials lapsed last week.

CUC was compelled to launch simultaneous disconnection works following failure to reach an agreement with the finance department to at least guarantee a minimum monthly payment.

“It is our legal and fiduciary responsibility to collect for government utilities, or disconnect services. With the price of fuel and maintenance, we can’t afford to carry customers who do not pay,” CUC Board Chair Jesus T. Guerrero said.

The finance department failed to pay four and five billing cycles due on March 1 where Rota and Tinian government offices are included. The cycle four contained 49 delinquency notices on non-essential offices totaling a payment of $892,450.92 while another 55 government under cycle five with 4492,053.23 utility debts.

Rota Mayor Benjamin Manglona sounded his alarm after the local government’s power supply was disconnected along with other offices. He immediately placed Rota under local disaster emergency status.

Disconnection works were ordered by utility officials in hopes to recoup revenue losses in the past after CUC suffered a major setback.

Its operating income fell over $9.5 million in FY2000 and the serious credit problem of the CNMI government has been straining CUC operations.

The agency was forced to cut maintenance by over $1.1 million in FY2000 not to mention utility operations, expenditures for supplies among others.

The utility agency owed CUC Mobil Oil an estimated $2.9 million and has been spending at least $3.3 million for fuel every month and paid 75 percent more for the last two fuel shipments. (EGA)