CUC backs separate fund for agencies’ power tabs

The Commonwealth Utilities Corporation urged government agencies to provide lawmakers exact amount of utility expenditures to expedite drafting of measures for individual allocations power and water bills.

In response to House Bill 12-234, CUC Executive Director Timothy P. Villagomez said the Legislature must appropriate the funds for individual utility expenditures of each agency to prevent insurmountable debts in the future.

Mr. Villagomez also pressed the finance department to release approved allocations in accordance with the law and let agency heads to look after their utility debts and needs.

Recognizing the impact of the economic slowdown, Mr. Villagomez told lawmakers to base utility budgets on actual tax revenues and to cut back utility funds should needs arise.

“If those revenues don’t materialize, it’s up to the agencies to cut back and abide by the obligation and law,” said the executive director.

Last week, Gov. Pedro P. Tenorio disclosed that the administration is mapping out measures to allocate utility budget for each government agency and department.

Mr. Tenorio said the proposal stemmed from the recent disconnection works of CUC on over 95 government offices on Tinian and Rota due to unpaid utility bills.

The proposed separate utility allocations will be included in the proposed appropriations for Fiscal Year 2002, the governor added.

Under the resolution reached between CUC and finance officials, government heads will place the utility corporation on top of their to-be-paid list and to budget correctly funds channeled for utilities in general.

CUC also asked the government to identify surplus funds to cover the government’s outstanding debts which amount to over $12 million.

CUC also agreed to the $800,000 monthly payment of Department of Finance starting next month and runs until September. Allocations for utility needs of each government office and senatorial district will have to be included on individual allocations of the agencies by FY2002.

The governor hopes that this time, the Legislature will pass the FY2002 budget to prevent mounting bills which caused a snag on government’s operation.

Meanwhile, CUC commended the efforts of the Administration and the Legislature to correctly budget and pay monthly utility bills.

By correctly identifying actual costs, conserving power, and working with the leadership, CUC and the government can tackle the $12.3 million of debt obligations on a long term basis, said Mr. Villagomez.

“The leadership is doing the right thing in planning correct budgets and releasing funds that resolve this issue because the entire economy, the business-people are relying on them, we are pleased that our leaders realize that disconnection of accounts will occur each month without well planned action,” he added. (EGA)