COMMONWEALTH Utilities Corp. financial officer Greg Cruz told the CUC board of directors on Thursday that the Commonwealth Healthcare Corp. is current with its payment obligations.
Cruz, who attended the meeting through videoconference, said CUC has been receiving about $219,000 monthly, with $150,000 coming from the central government and $69,000 from CHCC.
“So, they’ve been living up to that obligation. They’re current with that obligation in the agreement,” Cruz said, referring to CHCC’s payment agreement with CUC.
It was CUC board member Matthew Holley who asked whether there was still a billing issue with CHCC.
“This is great news,” said Holley, adding, “CHCC’s unpaid billings had been an issue for so long.”
In September, CUC and CHCC signed a payment agreement regarding CHCC’s utility bills.
According to the agreement, CHCC owed CUC a total of $34,087,471.31 as of Aug. 25, 2020, including a penalty of $10,238,146.53 that had accrued over the course of almost a decade since 2011.
Under the agreement, the payment will remain at a minimum of $219,000 per month unless there is an increase in CHCC’s consumption or in the fuel adjustment charge or FAC rate. CHCC will increase its share of the monthly payment ($69,000) based on its actual consumption and the increased FAC to cover the heightened utility; but in no event will that increased FAC charge exceed $5,000 per month. CHCC’s payment will decrease along with the FAC; but CHCC’s payment will remain, and be no less than $60,000 regardless of a decrease in FAC.
If CHCC misses its $69,000 payment after 30 calendar days, CUC will disconnect CHCC’s utility services pursuant to its regulation under Title 50 of the Northern Mariana Islands Administrative Code.
On Sept. 8, 2020, CUC disconnected the hospital’s power supply for six hours.
In November 2020, the CUC board discussed CHCC’s request to pay the commercial rate instead of the much higher government rate.
This request was not discussed in the board meeting on Thursday.
