“We do have a lot of promissory notes,” he said.
Muna was asked to comment about the findings of Georgetown Consultancy Services, which was hired by the Commonwealth Public Utilities Commission to look into CUC’s power rates.
According to Georgetown, if CUC resolves its accounts receivable problem it can generate enough funds to sustain the rehabilitation of its power engines.
In 2007, CUC’s accounts receivable totaled $31.2 million, of which $9.6 million was owed by the government.
$12.7 million of the total amount was considered uncollectible and $2.4 million had been written off as “bad debt.”
Muna said CUC was able to collect from the Public School System $2.7 million in FY 2007 and $3 million in FY 2008 for a total of $5.7 million.
As of Aug. 30, 2008, PSS owed CUC $1.126 million.
Except for PSS, Muna said other government agencies have been paying as scheduled within 30 to 45 days.
He noted that there is also a law that allows delinquent CUC residential customers to arrange for an installment plan.
Even if the customers are behind in their payments, Muna said CUC cannot just disconnect their power.
“There is a certain program that allows someone to continue receiving CUC’s services even though his or her account is not current,” he added.
