By Gemma Q. Casas
Variety News Staff

THE cash-strapped government has delinquent accounts with the Commonwealth Utilities Corp. but utility services cannot be disconnected because of a temporary restraining order imposed by the court in 2004.
The government has been questioning its water and sewer bills which had accumulated to $34 million as of 2004.
CUC Executive Director Anthony Guerrero said the government’s current arrears are now estimated at $1.5 million down from $18.5 million as of June 2005.
“We’re working on the details of the payment. I’m in periodic contact with Finance Secretary (Eloy Inos) on that issue. It’s not in the millions, probably around $1.5 million,” said Guerrero when asked about the government’s payment history.
“They acknowledge that (the arrears) and we acknowledge that but with the TRO it’s very difficult. We just have to work together,” he added.
Guerrero said the government’s arrears went down to $1.5 million because CUC credited the more than $2 million government subsidy to the agency’s fuel cost that began in late 2005.
“We have to be mindful that during the last year and a half prior to the implementation of the (new power) rates, the government was providing assistance every month for fuel payments and so that has been taken into account,” he told Variety.
He said the TRO also deals with the government’s disputed billings on water and wastewater.
He said CUC wants the TRO to be lifted so that the agencies can be treated the same as residential or commercial customers if they fail to pay what is due.
“We want to lift the TRO. Last week, we met with Tony Muna (the governor’s special assistant for the office of management and budget) and the finance secretary (Eloy Inos). We want to have a clean slate. We are working on it,” he said.
CUC has been disconnecting the power and water services of delinquent customers.
In March, 200 customers were disconnected in Saipan for failing to settle their utility bills.
Similarly on Rota, about 100 customers lost their power and water due to their mounting arrears.
The financially troubled CUC created a task force last year to go after delinquent customers who have accumulated arrears of more than $6 million.
A number of those are garment factories that have shut down.
Under the fiscal year 2007 budget, only $7.3 million is budgeted for government agency utilities.