CUC admitted owing $9K to govt agency

The CNMI government has expressed hope that its dispute with the Commonwealth Utilities Corp. will be resolved through further negotiations, citing the outcome of talks between CUC and the Commonwealth Election Commission.

Department of Finance officials noted that through discussion, the government and CUC were able to reach an agreement on one specific account involving the Election Commission.

As part of the negotiation, CUC agreed that it owed the Election Commission $9,189.36 for overcharges, according to Finance technical analyst Connie Salas.

In a declaration filed at the Superior Court last week, Salas related that CUC charged the Election Commission a flat monthly fee of $360 for water and sewer. The charge was made despite the fact that a water meter was attached to the Election Commission’s offices.

The meter indicated that the Election Commission should have only been charged approximately $100 per month on average for its water and sewer use, Salas said.

Last April 15, the Election Commission disputed the charges by filing an administrative action against CUC. At the time, CUC threatened to disconnect the Election Commission, claiming it owed $3,309.32, Salas said.

The Election Commission, on the other hand, claimed it had been overcharged approximately $8,000 since November 2000. The Election Commission later learned that the amount owed them was even greater than this, Salas added.

“The Election Commission did not pursue its administrative action. The action was stayed and the bill was negotiated as part of the negotiations occurring in this case,” Salas said, referring to the lawsuit filed by the Finance Department last April questioning CUC’s claim that the government owes tens of millions in utility bills.

“As part of that negotiation, CUC agreed that it owed the Election Commission a credit of $9,139.36 for overcharges,” Salas added.

Salas reported that it was also agreed that it would charge the Election Commission based on meter readings instead of a flat rate. This, she said, has led to a decrease of approximately 80 percent in the monthly bills related to the Election Commission.

Salas said she hopes that further negotiations would also lead to the resolution of CUC’s dispute with the government.

Finance Secretary Fermin Atalig echoed Salas’ sentiment. “I am hopeful that continued good faith negotiations could lead to a similar amicable resolution regarding some or all of the CNMI’s other CUC billings,” he said.

In April 2004, CUC informed Finance that it planned to disconnect utility services to various government agencies if it did not receive payment on the utility bills, now allegedly amounting to $18.3 million.

Finance responded by filing a lawsuit against CUC and seeking a court order that would stop the disconnection. The Superior Court granted the temporary restraining order on April 23.

The TRO was supposed to lapse on June 1, but CUC and the government reached an agreement to extend the TRO until Nov. 30.

On Oct. 6, CUC’s legal counsel, Kay Delafield, filed a motion asking the court to dismiss Finance’s lawsuit and dissolve the TRO.

Delafield said CUC had not contested the TRO because of its interest in working out a payment agreement with Finance. She added that Finance has had nearly six months to address its failure to pay and to work out a plan or to demonstrate the validity of its arguments regarding the government’s utility bills. However, the matter has not moved toward resolution.

In response, Atalig maintained that the government has complied with its agreement with CUC to make $650,000 monthly payments on time.