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CUC discloses payments of its 3 largest customers
The cash-strapped Commonwealth Utilities Corp. disclosed Friday that its three biggest customers—the central government, the Commonwealth Healthcare Corp., and the Public School System—paid only 66 percent of the $20.9 million that was billed them in fiscal year 2013.
CUC chief financial officer Charles Warren reported to the board that the agency’s collection from these three biggest users totaled only $13.942 million last fiscal year.
The public hospital made the lowest payment in fiscal year 2013 at $1.774 million—just 28 percent of the $6.388 million in total charges for the year.
Since the start of fiscal year 2014—as of April 30—the CHCC paid only $870,892 for its utility consumption. This represents just 22 percent of total charges assessed CHCC this fiscal year, which is $3.983 million.
CHCC’s actual payments made to CUC in fiscal year 2013 and 2014 were the lowest compared to PSS and the central government.
According to Warren, PSS had made a total of $2.311 million in actual payments in fiscal year 2013, which is 55 percent of the overall charges for the year, totaling $4.219 million.
As of April 30, 2014, the system paid just $1.6 million of the $2.786 million in total charges assessed since the beginning of fiscal year 2014 in October. This payment represents 58 percent of total charges for the year.
Warren reported that the central government made the biggest payment among the three customers since fiscal year 2013. Records show that actual payment last fiscal year was $9.856 million—or 95 percent—of the total charges of $10.364 million.
In fiscal year 2014, the central government’s payments since October amount to $4.632 million—or 84 percent—of total charges amounting to $5.510 million.
Based on CUC records, the average monthly charges for the three customers are the following: CHCC, $663,961; PSS, $464,385; and the central government, $918,357.
CUC and CHCC are currently in litigation over the hospital’s mounting arrears, while negotiations are ongoing with PSS and the central government.
