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CUC seeks agreement with PSS over unpaid utility bills
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Posted on Jan 24 2012
The Commonwealth Utilities Corp. wants the Commonwealth Public Utilities Commission to support its planned memorandum of understanding with both the Public School System and the central government that seeks to settle PSS’ unpaid utility obligations.
In its latest filing before the commission, CUC endorsed two MOUs—one between the utilities company and the school system and another one that include all parties in the agreement.
Both MOUs pertain to the unpaid utility obligation of the school system, a portion of which has been absorbed by the central government to offset the amount that was supposed to go to PSS in fiscal year 2001 but was never remitted.
As of November 2011, PSS owed CUC $3.7 million for power and water, according to CUC. It was agreed that the government will absorb $1.5 million of this obligation while the remaining amount will be shouldered by PSS.
According to CUC, the administration has committed to paying a minimum of $50,000 weekly with no interest. To date three payments have been received: $150,000 as of Dec. 20, 2011.
In case the CNMI misses any payment of the remainder of the $1.5 million, CUC said it will pursue all other remedies available to it under the law.
CUC, in the proposed MOU with PSS, indicated that the system is still liable for the remaining obligation, with minimum of $50,000 bi-weekly payments at no interest. CUC said it has already received two payments from PSS.
“CUC has sent 50 demand letters to PSS for its delinquent accounts; CUC shall delay filing lawsuits for those 50 demand letters as long as PSS is making its current monthly payment in full plus the minimum payment as agreed to in the MOU,” CUC’s proposed MOU stated.
As of Sept. 30 last year, the central government and PSS topped the list of delinquent CUC accounts. The central government’s utility debt was at $2.4 million while PSS owed $3.6 million.
The $6 million collectibles from PSS and the central government translates to a month’s supply of fuel for CUC.
