CUC waives DPL’s late payment fees

The Commonwealth Utilities Corp. waived a significant portion of late payment fees for the Department of Public Lands after the latter showed good faith effort in fulfilling its decade-old debts.

Last week, CUC officials headed by its board chair David J. Sablan, formally received from DPL Secretary Pedro Tenorio a check of $327,429 as full payment of what the agency owed for many years.

CUC executive director Alan W. Fletcher yesterday said that the lump-sum payment of long-time utility arrears was not assessed any late charge fees after the CUC board waived the late payment fees associated with DPL debts.

“In recognition of payment in full of the principle amount, the CUC board took formal action to waive late payment fees,” said Fletcher.

CUC chief financial officer Charles Warren yesterday estimated the waived late payment charge to DPL at between $120,000 and $130,000.

Fletcher also disclosed that the monies received from DPL will be returned to CUC’s reserve fund to fund critical power plant projects. As discussed at the last meeting, CUC has had to dip into this fund in order to pay for ongoing operations, resulting in deferred maintenance and capital projects.

During the check presentation, Sablan thanked Tenorio for his leadership in resolving the decade-old dispute and for the payment.

“Secretary Tenorio’s and DPL’s payment of its utility bill obligations should be a model for all government agencies that owe CUC money. CUC recognizes the time and effort of Secretary Tenorio and stands ready to work with other government agencies in paying their debts,” noted Sablan.

Fletcher also thanked DPL for their payment and reemphasized that the board and staff look forward to working with all government agencies in resolving past payment issues.

“The importance of timely utility payments cannot be understated, they are simply essential to ensure reliable power, water, and wastewater services,” added the executive director.

DPL’s check payment covers the period from August 2005 through September 2012. Its power arrears amounted to $322,961.65 while for water, $4,467.82.

Saipan Tribune learned that in the days of the Marianas Public Lands Authority, an “Agreement for Designation of Use of Public Domain Lands” was entered into by CUC and MPLA, which involved the conveyance of a parcel of public land for CUC’s use.

According to Tenorio, in return for this conveyance, CUC agreed to essentially waive all utility charges to DPL. A subsequent legal memorandum disputed this arrangement, describing it as inappropriate.