CUC avoids approving CHCC’s low-ball payment plan offer

The CNMI’s public utility board has directed its management to work out a payment plan with the Commonwealth Healthcare Corp., after discussions grew fiery yesterday over the health corporation’s proposed monthly payment of about $150,000.

If it had been voted for, the $150,000 monthly payment would have been finalized despite the local hospital owing about $560,000 in utility bills per month. Right now, CHC owes the Commonwealth Utilities Corp. about $16 million in past due accounts. In March, a local court granted CUC right to disconnect the hospital’s “non-essential” units, which the utility has since done.

Board member David Sablan Jr. yesterday called it a “subsidized program,” if the board had approved the monthly payment plan. He said he was calling for “equity” for all their customers.

The payment plan was described in a letter from CHCC this month. Saipan Tribune learned the letter described CHCC’s intent to pay $150,000 a month until it got its “renewable energy” plans up and running in year.

CUC board chair Adelina Roberto said this $150,000 was a “minimum” in an interview. She said what they were working on was a “draft contract.”

This draft contract is essentially a law to draft. Copies of a draft “Senate Bill” legislation had been shared among the board and management since a payment plan would have to be approved by law.

The CHCC letter was requested but not made available as of press time. Roberto said it would be made public after CUC had decided on the payment plan.

Roberto urged yesterday that they discuss the matter in executive session, but Sablan objected, saying that the letter was in the “public domain” and that payment plans were not legal or personnel issues.

The board did not vote on the payment plan despite discussion during open session indicating support of it.

CUC management will now start discussion with CHCC to work out a payment plan.

CUC would like to determine exactly how much the local hospital could pay them per month.

CUC has questions if the local hospital has a proper billing system and proper financial personnel in place.

Board member Sablan, who was former board chair, believes the hospital can pay more than the $150,000.

He said that CHCC proposed to pay $300,000 a month a year ago.

Non-essential units

In March, Superior Court Associate Judge David A. Wiseman allowed CUC to cut utility services to CHCC’s “non-essential” services unless the health corporation paid up or paid an amount that satisfied CUC. CHCC did not.

That month, Wisemen deferred the execution of the sanctions by 45 days to give CHCC time to file any objections to the list of “non-essential” hospital services.

Roberto yesterday said after this 40 days, CUC disconnected these non-essential services. “CHCC was the one who gave them those meters [and] accounts, and when we looked at it, they were not CHCC’s,” she said.

Roberto said they disconnected the unnecessary accounts of CHCC, but said they found out some were are not CHCC’s accounts anymore.

During the board meeting, CUC counsel James Sirok also told board members that they had found that a few of those accounts actually were no longer CUC accounts. He said locations were being utilized by other entities other than CHC entities unbeknownst to CUC.

Subsidized

Sablan called for disconnection of the local hospital if they could not come current on their account. But this met opposition from his other board members.

Board member Albert A. Taitano, from Rota, said he would not support any move to disconnect the hospital. “People in Rota are suffering,” he said. “They come to Saipan for medical attention so you tell me you’re going to disconnect the hospital?”

To this, Sablan said Taitano was supporting a subsidization of the hospital that would probably translate into a rate increase for other people.

Board member Eric San Nicolas, from Tinian, told Sablan that if he wanted to be the director to “cut off the lifeline for the people of Rota and Tinian, you can very well advocate for that.”

“But I will not support it…” he said.

Taitano further said the hospital’s payment of $150,000 was better than nothing.

In an interview, Sablan said CUC has continued the “hospital subsidization program” for over two years now despite a clear report from them of “conservation plans,” or any payment of any of their past dues.

“What they are asking from us is to subsidize it even longer. They are proposing to put solar panels to reduce their overall dependence on oil-generated electricity, which comes from CUC. That’s pretty much like saying, “Can you help us for at least a year and after that we are going to come off the grid? If that’s your intention—unless you are going to give us the solar panels and make it part of our assets—then you are asking us to basically help you so can get off the grid system.”

Sablan pointed to what the Public School System has done, whom he said has conserved, reduced their consumption, and remained current on their accounts.

He said PSS pays about $5,000 monthly now against their past due accounts, which he said showed “good faith.”