CUC inks $1.3M deals on delinquent accounts

The Commonwealth Utilities Corp. scored a partial victory in its debt collection, after reaching settlement agreements binding several delinquent customers to pay $1.3 million.

CUC executive director Lorraine Babauta said the agreements, which were executed over the past month, involve several large disputed accounts. The payments will be made in installments that will enhance CUC’s revenues in the coming months.

“This is a major improvement in our accounts receivable situation,” she said.

Further, Babauta said the utility firm, pursuant to a court order, continues to negotiate with the CNMI government regarding the latter’s approximately $15-million debt to the utility firm.

The government has disputed this amount and accused CUC of overcharging.

In a public notice issued in relation to the proposed 3.5-cent fuel surcharge, CUC said it is now up to the court to decide whether the government owes CUC. “In other words, CUC cannot count on collecting from the government in the near future and may not be able to collect it all if the court’s decision is in favor of the government,” the firm said.

Meanwhile, CUC has become aggressive in clearing up all outstanding account, Babauta said. She expressed hope that all outstanding billing disputes will be resolved in the coming year through the efforts of the Central Processing Unit, which will be based in CUC’s Dandan payment center.

In an earlier interview, she said the Nov. 30 closure of the Garapan and San Jose payment centers and the establishment of a central processing section is expected to improve CUC’s handling of disputes and other customer concerns.

“We want the public to know that even though we must ask our customers to bear some of the increased fuel costs, we are addressing our other operational needs through an aggressive effort to recover all debts owed to CUC,” Babauta said.

She also asked anyone with a delinquent balance to come in to discuss a payment plan as soon as possible.

CUC is pursuing receivables through legal actions, administrative hearings, and other collection efforts.

The firm noted that some of these bills are uncollectible, as they are owed by companies that have left the island or by people or businesses that do not have the ability to pay.

Other accounts will be collected through promissory notes, which will provide CUC a stream of income but not lump sum payments, CUC said.