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Govt payment to CUC totals $12M
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Posted on Sep 10 2005
The government has now paid a total of $12 million to the Commonwealth Utilities Corp., which is $7 million more than the yearly appropriation.
This figure is on top of the recent reprogramming of funds to CUC totaling $9 million due to the power crisis.
Management and Budget director Ed Tenorio said that the government’s payment for utilities reached $12 million as of the first week of this month.
This billing covers the Executive Branch, Legislature, Judicial Branch, municipal governments, and some autonomous agencies like the Northern Marianas College and the Public School System for fiscal year 2005.
As of mid-August, the Governor’s Office said that the payment to CUC for the current fiscal year totaled $11.4 million.
Under the continuing resolution, only $5 million is allotted for government utilities.
The administration has reprogrammed additional funds for CUC in view of the soaring fuel prices in the world market.
CUC reportedly consumes 3 million gallons of fuel a month, which costs some $6.2 million. Right now, CUC said that it gets $4 million from customers, $1.2 million from the fuel surcharge, and $1 million in government subsidy.
This subsidy is taken from other government agencies through the governor’s reprogramming authority. The governor has the authority to reprogram up to 25 percent of appropriated funds.
The governor also has 100 percent authority as granted by the Legislature to reprogram funds specifically for CUC in view of the current power crisis.
The House of Representatives, however, does not agree anymore with the governor’s reprogramming for the utility firm.
In House Joint Resolution 14-42, the House accused the governor of making illegal reprogramming for CUC. It asked the Public Auditor and the Attorney General to investigate the alleged illegal act.
For his part, the administration said that the CUC overpayment would be addressed if the Legislature passes a new budget increasing the annual appropriation for government utilities.
