21 CUC consumers claim property compensation
At least 21 costumers have decided not to pay their bills totaling $825,000 to the Commonwealth Utilities Corp. pending the settlement of their claims with the agency.
These customers, according to CUC, are seeking compensation for utility service lines that cross their properties.
“Until such time as the amount of compensation is agreed upon, these customers have stopped paying a part or all of their utility bills,” CUC said.
The utility firm said that administrative hearings have been held to settle the claims.
In the meantime, CUC has categorized the receivables due from the customers as “uncollectible.”
“CUC is awaiting the outcome [of hearings] to pursue collections, should it be in favor of CUC,” it said.
Meantime, CUC reported over $31 million in receivables, including $16.2 million or 53 percent from the government and $14.5 million from residential and commercial customers.
Of the $14.5 million, CUC estimates that about $8.6 million or 58 percent is uncollectible, including the amount due from customers with pending easement claims.
CUC said it ages utility receivables based on the number of days the receivables are outstanding.
Receivables outstanding one to15 days are current; 16-45 days are past due; ad 46 days or more are in default or delinquent.
Receivables totaling $5.4 million are current, $2.4 million are past due, and $22.9 million(74 percent) are in default.
Of the $22.9 million receivables in default, over $13.8 million (60 percent) are due from CNMI government agencies.
Overall, CUC said that it has $16.2 million receivables from the central government.
Based on its policy, CUC issues a delinquency notice to customers with outstanding bills not paid within the 15 days billing.
After its issuance, the customer has 14 days to settle it. Failure to do so within the period would result in disconnection.
