Citing CUC’s arbitrary electric power meter readings, Hofschneider said the college must aggressively dispute the overbillings.
If the college prevails, its remaining outstanding unpaid bill would be cleared and its future monthly billings would be credited to the balance, he said.
In his report to the NMC board of regents on Friday, college budget analyst Skep Palacios said NMC had an unpaid Aug. 2009 to Feb. 2010 CUC bill amounting to $440,372.35.
Hofschneider said in the past three years, the central government through the Department of Finance paid CUC for the college’s utility bills.
He said the arrangement is still in effect.
Finance, he added, informed NMC that it has set aside $90,000 of Compact-Impact funds for the college.
Hofschneider said Finance will pay NMC’s August and September 2009 billings which will reduce the total bill amount to $328,765.70 from $440,372.35.
If Finance will also pay CUC with NMC’s unspent allotment of $81,091 and the $90,000 in Compact-Impact funds, then NMC’s total bill will amount to only $157,676.70, he added.
In his report, Hofschneider said the college will have to identify a source of funding if Finance will no longer pay for the college’s utility bills.
If this happens, he said, the only available source of revenue is NMC’s tuition and other fees.
Variety learned that CUC and NMC officials met on April 14 to discuss the unpaid bill.
In the meeting, CUC Executive Director Antonio Muna gave the college until the end of the month to inform him the amount it would pay.
The college said it informed Muna about CUC’s overbillings.
Muna then suggested that the college pay the undisputed bills.
NMC said it is being billed for power and water usage on its campuses on the three main islands.
But only the As Terlaje campus is being billed for sewer since there is no government-owned and operated sewer infrastructure available on Tinian and Rota.
NMC interim President Lorraine Cabrera said to reduce operational costs, they will continue to step up efforts to minimize electricity and water use.
