COMMONWEALTH Utilities Corporation Executive Director Kevin Watson said they have met with Commonwealth Healthcare Corporation officials regarding CHCC’s utility bills, and “it’s a very positive meeting.”
“I feel confident that we can work with them and come up with the best solutions not only for CUC but for them as well,” he added.
“We gave some options, and they are studying those, and we have not received any response yet,” he said.
Last year, CUC signed a memorandum of understanding with CHCC, which agreed to pay $525,000 a month. The MOU expired in May 2024.
“Ultimately, all dues need to be paid,” Watson said. “But realistically…it’s been over many years in the making [and] the economy is hurting here, every business and government agency is struggling, and we have to be cognizant of that and work together so that everyone can come out and be successful,” he added.
As for the CNMI government’s arrears, Watson said, “We have been working with them…and [they are] trying to catch up with [payments] — they are making payments as previously arranged.”
After an intervention from the federal court, Gov. Arnold I. Palacios made a commitment to “reconcile” the top 15 accounts on the list of the government’s unpaid utility bills.
Upon “reconciliation,” the Department of Finance paid 25% of the top 15 accounts in May.
CUC reported that it had received from Finance $464,000, which was roughly 25% of $1.7 million in FY 2021 arrears.
According to CUC’s accounts receivable report, the CNMI central government owed $13 million; CHCC, $60.5 million; the Public School System, $224,647.68; the Commonwealth Ports Authority, $2.5 million; and other government agencies, $1.5 million.
CUC said if the CNMI government continues to make regular payments, by April 1, 2027, “the central government should have already paid all its arrears.”
