Separate utility budget for each agency eyed

Fears of another disruption of government operations and insurmountable debts in the future is forcing the administration to eye a separate utility budget for individual agencies and islands.

Gov. Pedro P. Tenorio disclosed yesterday that the Planning and Budget Office is looking at providing each government agencies and entities, its own budget for power and water and to look after their utility needs.

Mr. Tenorio said the proposal stemmed from the recent disconnection by the Commonwealth Utilities Corporation of close to 100 government offices on Tinian and Rota due to unpaid bills.

As an alternative while allocations are yet to be made available, Mr. Tenorio re-issued his energy conservation memorandum, urging all department heads and government offices to conserve water and power supply.

By conserving, Mr. Tenorio is upbeat that utility bills won’t cost that much. Typically, the government uses about $800,000 worth of electricity each month.

The governor said disruption of government functions due to interrupted water and power supply should not happen again. As a remedy, budget officials have been asked to look at possible means to prioritize utility funds that will cover all government offices.

The separate utility allocations will be included in the proposed appropriations for Fiscal Year 2002, the CNMI chief executive told reporters in an interview.

Under the agreement reached between CUC and finance officials, government heads should place utility bills on top of their to-be-paid list.

CUC also asked the government to identify surplus funds to cover the government’s outstanding debts which amount to over $12 million.

CUC also agreed to the $800,000 monthly payment pledged by the Department of Finance starting next month. The flat monthly rate will run until September.

Allocations for utility needs of each government offices and senatorial districts will have to be included on individual allocations of the agencies by FY2002.

The governor hopes that this time, the Legislature will pass the FY2002 budget to prevent mounting bills which caused a snag on government’s operation.

Utility needs of the administration should be properly addressed, Mr. Tenorio said, adding that running under a continuing budget resolution has affected these functions.

Early this week, CUC proceeded with its disconnection of over 90 government offices on Tinian and Rota. Power was restored Wednesday, after it received the $1.1 million payment for utility debts from the administration.

The utility corporation also withheld disconnection works to more than 47 Saipan government offices and agencies which were earlier identified as delinquent customers and up for power disruption Wednesday.

CUC rescinded disconnection orders which will be placed on hold up to April when the regular $800,000 monthly fixed rate agreement will take effect. (EGA)