CHCC requests another MOU on utility arrears

The Commonwealth Healthcare Corp. has asked the Commonwealth Utilities Corp. for another memorandum of understanding in regard to payment of utility arrears following expiration of a previous MOU.

Yesterday, the CUC board met to discuss a number of agenda items, one of the items being CHCC’s payment status.

However, according to CUC executive director Kevin Watson, CHCC has submitted a letter requesting another MOU to address its outstanding arrears.

The board asked Watson to respond to the letter.

Saipan Tribune has reached out to CHCC for a statement on the matter, but CHCC has yet to issue an official statement as of press time.

In 2023, CUC signed an MOU with CHCC in which CHCC agreed to pay $525,000 a month to address over $53 million in utility arrears.

In a previous interview with CUC official Betty Terlaje, she shared that CHCC’s MOU with CUC expired last May.

Terlaje, during the interview, said in order to address arrears reflective of utility usage increase, a new memorandum of understanding with CHCC needs to be executed.

Up until the MOU’s expiration, Terlaje said CHCC had been making good on their monthly payments pursuant to the MOU they’ve agreed to.

Unfortunately, Terlaje added, CHCC’s usage has gone up and the MOU only reflected CHCC’s average prior to the MOU.

Fortunately, Terlaje said CUC is determined to work with agencies like CHCC to resolve arrears as CUC is dependent on these payments.

“Our board has been very adamant and has made very clear that it’s not fair if other entities pay their bills while other agencies are given this long-standing payment plan. Although when the arrears are this high, I feel that we have to work with these agencies to see how we can resolve it and hopefully, moving forward they will pay all their current bills because CUC is very dependent on these payments. Otherwise, we will keep going backwards and we will keep finding ourselves in this situation where we are struggling to keep the power plant going,” she said.