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‘FEMA delay straining CUC cash flow’
CUC revenue almost back to pre-Yutu level
The Commonwealth Utilities Corp.’s revenue collection from power and water has been steadily growing every month, but the Federal Emergency Management Office’s slow reimbursement of millions of dollars in expenses from recovery efforts following Super Typhoon Yutu is causing a major strain on CUC’s cash flow, according to CUC chief financial officer Greg P. Cruz.
During CUC’s board meeting last Friday, Cruz reported that their revenue data on power and water sales shows that CUC is now very close to its pre-Super Typhoon Yutu level.
“So, we are almost there,” Cruz said.
On the other hand, he lamented that reimbursements from FEMA “are very, very slow.”
He said CUC has already submitted a total of $8 million in reimbursement applications to the local FEMA office.
He said this FEMA delay is putting a lot of strain on CUC’s ability to pay its current operations.
Greg P. Cruz
CUC pays a 10-percent match for FEMA-funded projects.
Cruz said the $8 million should already be in CUC’s bank account but is being held up “for whatever reasons.”
He said they submitted everything that they are required to submit to FEMA for reimbursements.
“It is always my understanding that money is already on island and it’s only a matter of just turning in the documentation. But, apparently, there is something that I am not aware of,” Cruz said.
Cruz said the number of customers in their system has returned to the pre-Yutu level due to CUC’s restoration effort.
“It is really showing in the numbers. It is very positive from my prospective when I look at these numbers,” he said.
