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CUC sues to collect $18.9M from CHC, PSS, central govt
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Posted on Dec 15 2013
The Commonwealth Utilities Corp. has filed separate lawsuits to collect utility billings totaling $18.87 million from the Commonwealth Healthcare Corp., Public School System, and the CNMI government.
Attorney Michael White filed the lawsuits in an e-filing in the Superior Court last Tuesday but the court’s clerk reviewed the filings only on Friday.
Saipan Tribune learned that Associate Judge Joseph N. Camacho is handling the cases. The CNMI government, through the Office of the Attorney General Civil Division, has 20 days to respond to the lawsuits.
Excluding the exhibits, each lawsuit has only two pages.
White stated in the lawsuits that the Commonwealth Healthcare Corp. owes CUC $9,690,875.67, together with pre-judgment interest, for utility services.
White said that PSS and the CNMI government owe CUC $5,936,931.55 and $1,241,137, respectively, together with pre-judgment interest, for utility services.
Despite demand, the lawyer said that CHCC, PSS, and the CNMI government have “failed, refused, and neglected” to pay the sums in full or in part.
CUC wants the court to issue a judgment against the defendants for the principal sums of $18.87 million, together with pre-judgment interest and court costs.
CUC executive director Alan Fletcher, during Tuesday’s deliberation with the Commonwealth Public Utilities Commission, disclosed that government receivables pose a burden for residential customers and CUC itself as money for its operation is being diverted to pay for fuel.
Fletcher said that despite efforts to resolve these issues in the past, such as a memorandum of understanding and other resolutions, CUC remains unsuccessful in collecting arrears from its debtors.
In papers it filed with the Commonwealth Public Utilities Commission last Friday, CUC disclosed that CNMI government agencies currently owe the utilities corporation about $20 million—representing 20 percent of CUC’s annual revenue and 100 percent of its electric base rate revenue.
If this amount and all future bills are paid on time, this would lower LEAC charges for all customers by about $5.5 million and increase the amount of cash available to by $2.3 million, CUC said.
