Slider
Slider

|

Slider

CHCC to ask Legislature’s help in reclassifying utility rate

Local
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

THE Commonwealth Healthcare Corp. will ask the Legislature to pass a bill that will reclassify the utility rate of CHCC from government to commercial.

“Although there appears to be no valuable distinction between government and commercial entities as utility consumers, government rates for power, water and wastewater are much higher than commercial rates in the CNMI,” CHCC board of trustees chair Lauri Ogumoro stated in her July 27 letter to the Commonwealth Utilities Corp.

She is asking CUC to support   CHCC’s proposed bill.

CHCC chief financial officer Derek Sasamoto said the monthly utilities of the hospital cost about $350,000 to $400,000.

CHCC owes CUC about $23 million, an amount that has accumulated for over 10 years. It is now $35 million because of penalties, which is almost 50% of the principal, Sasamoto said.

In her letter, Ogumoro said CHCC should be reclassified as a commercial consumer of CUC.

She noted that Public Law 19-78 established  CHCC as an independent public health and medical services provider, eliminating its statutory placement in the executive branch of the CNMI government.

Based on the definition and utility rate classification categories under Title 50 of the CNMI Administrative Code, Ogumoro believes that CHCC, as an independent corporation providing revenue-generating services, ought to be reclassified as a CUC commercial customer.

“The designation of CHCC as a commercial entity is strengthened by the fact that CHCC is not dependent on CNMI government budget appropriations for operational expenses,” she said.

If CHCC’s rate will be reclassified as commercial, Ogumoro said its base rate for electricity consumption will be 8.8% lower per kWh; water charges will be 98.4% lower; and wastewater will be 95.6% lower.

previous arrow
next arrow
Shadow
Slider

Read more articles

Visit our Facebook Page

previous arrow
next arrow
Shadow
Slider