Betty Terlaje
THE Commonwealth Utilities Corp. has offered the Commonwealth Healthcare Corp. assistance in addressing its unpaid utility bills, acting CUC Executive Director Betty Terlaje told a Senate special committee on Tuesday.
Chaired by Senate Floor Leader Corina Magofna, the committee was created by Senate President Edith Deleon Guerrero on Feb. 27, 2024, to investigate the government’s unpaid CUC bills. The other members of the committee are Sens. Dennis Mendiola and Karl King-Nabors.
CHCC, as of last month, owed CUC $60 million, which included penalties.
Terlaje told the Senate committee that CUC has drafted a proposal that provides CHCC with settlement options. She said CUC’s management will present the proposal to the CUC board of directors before sending it to CHCC.
Terlaje said in April last year, CUC signed a memorandum of understanding with CHCC, in which CHCC agreed to pay $525,000 a month.
Terlaje said since then, there have been occasions when CHCC fell slightly short.
The proposed MOU, she added, will give CHCC “time to revisit, evaluate their finances and be able to come up with a solution on how they would address the arrears. We have not heard from them, but we do plan to reach out to them this week.”
Terlaje noted that CHCC has high water charges. She said CUC’s deputy director for water and wastewater, Kevin Watson, wants to know if CHCC needs help to reduce its water usage.
Central government
As for the central government, Terlaje said Gov. Arnold I. Palacios and Finance Secretary Tracy B. Norita have made a commitment.
By April 1, 2024, the administration will pay $400,000 or 25% of the balance as of 2021, which was $1.7 million, Terlaje said.
She said the Finance secretary also made a commitment to “reconcile” the top 15 accounts on the list of the government’s unpaid bills. Upon reconciliation, Finance will pay 25% of the top 15 accounts by May 1, 2024, Terlaje said.
For the rest of the accounts, “we’ll have to go in the same manner — we’ll have 30 days to reconcile and then 30 days for them [Finance] to make a 25% payment of whatever has been reconciled until all accounts have been reconciled,” Terlaje added.
By April 1, 2027, the central government should have already paid all its arrears, she said.
“So CUC accepted that agreement, and we’ve done our part and reconciled the top 15 on our side to make sure that all payments that should have gone to the accounts are there,” Terlaje said.
“The governor also committed that they will make current payments going forward so…we should expect that payment at the end of the month,” she added.
