LB has until May 18 to pay CUC

The Commonwealth Utilities Corp. has given the Legislative Bureau only until May 18, 2023, to pay its accumulated outstanding balance in the amount of $38,487 over several delinquent utility accounts as of March 31, 2023.

In a disconnection notice and demand for payment issued last Wednesday, acting CUC executive director Betty G. Terlaje informed Legislative Bureau director Perry John P. Tenorio that power and water services to the legislative building will be terminated on May 18, 2023, if no payment or settlement is not made.

Terlaje said the Legislative Bureau’s outstanding arrears add to the already struggling financial health of CUC, which relies on these payments to provide 24-hour power, water, and wastewater services to the CNMI.

In his response to Terlaje’s disconnection notice, Tenorio said Thursday they aim to settle all arrears by the May 18 deadline.

In the process of revising the fiscal year 2023 budget, Tenorio said they successfully secured adequate funding for their utility account and have been updating their payables to CUC since the revised budget became law last April 25.

Perry John P. Tenorio

Tenorio also noted that several aged receivables listed in CUC’s aging accounts receivables, totaling $15,121, are not the responsibility of the Legislative Bureau. Instead, he said, these receivable from six accounts should be charged to the legislative offices of specific lawmakers.

According to CUC’s list of aging accounts receivables, two accounts belong to the office of Rep. John Paul P. Sablan (Ind-Saipan), one account is for a Kagman street light by former representative Lorenzo Guerrero (Ind-Saipan), one account is for the Gualo Rai basketball court by Rep. Vicente C. Camacho (D-Saipan), and two accounts are by the office of former representative Richard T. Lizama (D-Saipan).

In CUC’s disconnection notice, Terlaje said CUC has continuously informed Tenorio and the bureau, as well as the Department of Finance, of the outstanding arrears and the importance of making timely payments to CUC.

Terlaje said that, as of today, there have not been regular payments or commitments to settle the arrears.

In his response, Tenorio said the Legislative Bureau acknowledges CUC’s claim and assures that they are taking every possible step to ensure payments are up to date.

Tenorio said it is important to also highlight that the utilities money allocated in the general fund has been consistently underfunded in the past two fiscal years. Fortunately, he said, the bureau received an American Rescue Plan Act allocation in fiscal year 2022, that helped address this shortfall. However, due to the overspending of the ARPA funds, the availability of this money is now uncertain in fiscal year 2023.