…As CUC cries ‘Enough is enough’

Government offices that have not made full utility payments despite notices and request made by the Commonwealth Utilities Corporation will be disconnected by Feb. 20.

CUC Board Chair Jesus T. Guerrero said yesterday that delinquent bills particularly those accumulated by the CNMI government have strained their operations which is now on the verge of collapse.

He warned that disconnection notices will be sent out immediately once government agencies and departments fall short in their payment of utility bills.

“We will continuing disconnecting utility services until CUC receives payments. We will deal with each government office individually,” said Mr. Guerrero.

A day after the utility service dispatched more than 40 disconnection notices to different government offices and departments, the board met to tackle pressing problems including the rising cost of fuel and the utility debts that needed to be collected.

Almost 52 percent of the accounts receivable will be coming from the CNMI government whose monthly utility bills amounting to $825,000 and accumulated debts of $12.3 million.

Mr. Guerrero said the government paid $1.187,497.88 this week which was deducted from its 1999 delinquent accounts.

Although payments are made, utility workers who read meters in three cycles warned that for January, the government has again utilized an estimated $2.5 to $3 million worth of power.

“We cannot harm the overall economy of small or large businesses that do pay on time just for a government that doesn’t,” the board chair stressed.

The problem with these unpaid bills, utility officials are pressed to source additional revenues to operate and maintain five power plants and to pay off Mobil Oil and other local vendors.

The board chair pointed out that CUC operates through payments made by its consumers and the federal funds that help build utilities in new homestead and rebuild old systems.

“When the customers do not pay, we cannot properly operate the utility, when customers do not pay, their utilities are disconnected, and so shall the government utilities be disconnected unless full payment is made on individual accounts,” said the chair.

More than 40 offices including the Finance department, Taxation and Revenue, Indigenous Office, among others were first to receive the disconnection notices.

Government agencies that are essential like hospital, schools, police stations and emergency management offices will receive their regular power supply.

Mr. Guerrero said in FY2000, CUC suffered a major setback and its operating income fell over $9.5 million and the agency was forced to cut maintenance by over $1.1 million not to mention utility operations, expenditures for supplies among others.

The utility agency owed CUC Mobil Oil an estimated $2.9 million and has been spending at least $3.3 million for fuel every month and paid 75 percent more for the last two fuel shipments. Only last week, the oil company reprimanded the agency and warned that fuel won’t be delivered unless accounts are settled.

Because of these circumstances, CUC is $2 million short even before payments to Mobil Oil were made. In addition to this, no local vendors will be paid unless the government settles its utility bills, he warned.

“We are concerned that the lack of electricity could affect businesses that need government operations. It is a serious economic matter, and we have evaluated it from every angle. But I assure you that if Mobil Oil cuts off our fuel supplies, and generators stop working because we cannot conduct maintenance, then all businesses will be in the dark,” Mr. Guerrero stressed.

The chair defended that the measure was not to worsen the economy but to stress that government should not be allowed to use free utilities when low-income families and consumers pay on time.