CUC: agencies should assume unpaid bills

The Commonwealth Utilities Corporation has expressed support for a proposal to turn over responsibility of paying government utilities to each department or agency in view of the mounting debt by the Tenorio administration in unpaid billings.

At present, the government owes CUC over $12 million — and still counting — which represents utilities costs for all departments and agencies from as far back as late 1997.

Utility officials had raised this issue during their meeting last week with members of the House Committee on Public Utilities, Transportation and Communications in hopes to reach a settlement to the long-standing problem.

One of the solutions being considered by lawmakers is to change the current utilities payment system in which, instead of having the Governor’s Office pay for all utilities costs of the government, each department or agency will have to set aside portion of their fiscal budget to meet this obligation.

Gov. Pedro P. Tenorio has already prodded the House Ways and Means Committee to look into this alternative scheme in an effort to promote energy conservation in public offices as well as to bring down their expenses for power and water services.

“That is something that needs to be looked at carefully because each department should know how much its budget is for utilities,” said CUC Executive Director Timothy P. Villagomez in an interview.

But he maintained the government-owned utility corporation will still press payment of the outstanding balance that has accumulated due to failure by the present administration to regularly meet its monthly billings.

Last month, CUC received close to a million dollar from the Department of Finance, although Mr. Villagomez said the amount was enough only to settle current billings.

“They are trying their best to make payments and we continue to pound on their door asking for additional payments,” he explained. “Any payment that comes into us, we will be more than happy to receive that.”

CUC and DOF are still in negotiation for a payment scheme that utility officials hope will drastically pare down the $12 million debt by half.

Finance officials, however, have so far offered a $250,000 per quarter payment — an amount that is not even sufficient to cover monthly utilities costs of the government that run over $1 million.

Responding to the governor’s call for a more efficient system, the Ways and Means Committee has asked finance department for a breakdown of utilities expenses for the executive branch, Legislature and the judiciary, to begin mapping out the much-needed revamp.

This will be the major change to the FY 2001 budget proposal that lawmakers hope to approve by next month. Under that proposed spending package, $4 million will be earmarked for government utilities which is the same level appropriated for the past few years.

In submitting the budget package last April, Mr. Tenorio had urged the Legislature to transfer the burden to respective departments and agencies in light of increasing utilities costs of the government.

While the executive branch corners huge chunk of the fiscal budget, the governor said it is unfair for his office to pay for power, water and sewer needs of all departments and agencies, including the Legislature and the courts.

Lawmakers have acknowledged the need to stop this practice which has discouraged government offices to conserve energy because of lack of accountability on their part.