ASSISTANT Attorney General Alison Nelson reported that as of June 30, 2025, the total outstanding balance of all government accounts — including the CNMI central government, the Judiciary, the Legislature, and the mayors’ offices — amounted to $3,443,413.
In a status report filed in federal court, Nelson provided the following breakdown:
– $1,911,163 owed by the CNMI central government.
– $167,176 by the Judiciary.
– $17,531 by the Legislature.
– $776,463 by the Mayor’s Office of Rota.
– $18,054 by the Mayor’s Office of Saipan.
– $553,025 by the Mayor’s Office of Tinian.
According to Nelson, the CNMI also has an outstanding balance due to the Commonwealth Utilities Corp. on its post-paid utility accounts.
“However, it has worked with CUC toward another Memorandum of Understanding that will allow the CNMI to offset amounts owed by CUC against that outstanding balance,” she stated.
She added that the CNMI has met its goal of transitioning a substantial number of electric meters to prepaid accounts.
Nelson stated: “Going forward, execution of the MOU will allow the CNMI to pay off the balance of penalties and interest carried forward from the September 2024 MOU. Afterward, CUC can issue shutoff notices to any agencies with a remaining balance to incentivize prompt processing.”
She said government agencies will need to either identify funding from their revolving or grant accounts or certify to the Department of Finance that those funds have been exhausted — and request an allocation from the CNMI central government or MOU-designated funds.
Nelson said all prior account balances for usage charges were paid and brought current through the application of a $10.9 million offset agreed upon by Finance and CUC. That offset covered usage charges but left about $887,000 in penalties and interest accrued through Sept. 30, 2024.
“However,” Nelson said, “that offset amount did not fully cover CUC’s outstanding 1% fee owed to the Office of the Public Auditor. Following an initial reconciliation, CUC’s outstanding balance on that fee as of Sept. 30, 2024, was reported as $8,338,160 by OPA and $8,158,264 by CUC — a variance of $179,896.”
She said the CNMI and CUC are discussing a new MOU to address the remaining balance. “The CNMI understands that CUC is willing to sign the MOU and credit CNMI accounts in the offset amounts as directed by the CNMI,” she said, “subject to one timing issue — it must first receive a $3.9 million Community Development Block Grant award to cover the shortfall that would result from applying credits without receiving corresponding cash payments.”
Nelson added, “CDBG funding is expected to be awarded this week. So, execution of the MOU and application of funds to the outstanding penalty and interest charges is anticipated to take place any day now.”
