DoF, CUC still meeting on utility bill problem

The Babauta administration and the Commonwealth Utilities Corp. are still working to resolve pending problems that emanated from the government’s accrued unpaid utility bills.

Finance Secretary Fermin Atalig disclosed Friday that the panel, which is composed of administration representatives and CUC officials, have up to Sept. 1, 2004 to resolve all issues.

According to the Finance Secretary, representatives to the panel are still hammering out issues and possible agreements on several issues raised by the CNMI government after the utility corporation lodged a complaint over unpaid bills.

“They are still checking them. Anyway, they have up to September 1 to hammer out all the items raised. We expect the outcome to be released by September,” said Atalig.

In May this year, Gov. Juan N. Babauta appointed to the panel Robert Schwalbach, Estrellita S. Ada, Rufin Inos of Revenue and Taxation, James Stump and Joseph Taijeron of the Office of the Attorney General, Robert Schrack of the Department of Finance, and Antoinette Calvo of the Treasury Division, to represent the CNMI government in the ongoing negotiation.

The creation of the panel stemmed from a court order that restrained CUC from conducting widespread disconnection of all utility services to government departments and agencies that have not settled their bills on time. The request for a temporary restraining order was sought by the government after CUC issued a disconnection notice.
Originally, Atalig said all issues should be resolved within a 30-day period and still provide sufficient time to report back to the respective agencies for further action to implement the recommendations.

The secretary also identified four principal points for discussion and proposals that should be carefully considered by the negotiating panel. These include the argument that the CNMI utility billings should be based on actual usage and be similar to the commercial rates charged to other CUC customers; recognition and consideration of past and future infrastructure contributions; compliance with past agreements on the Commonwealth Development Authority payments, among others.

Also, Atallig asked CUC to prioritize all government agencies in the installation of smart meters.

Part of the proposed restructuring of rates for the CNMI government would provide that CNMI utility billings be based on actual consumption, legal enforcement of utility billings, identification and recognition of actual CNMI subsidies, and contractual agreement on monthly/annual subsidy amounts.

In a stipulated agreement, the Finance Department and the CUC also agreed to check the actual utility consumption of all government offices so they could arrive at a basis for normal utility use. CUC executive director Babauta, CUC legal counsel Jay Delafield, CIP Administrator Virginian Villagomez, Atalig, Stump and Joseph Taijeron, signed the stipulated agreement.