David O. Carter
DESIGNATED Federal Judge David O. Carter informed Commonwealth Utilities Corporation officials at a status conference on Monday that he would like to have an informal meeting with Gov. Arnold I. Palacios regarding the CNMI government’s unpaid utility bills.
But it’s not an order, the judge added.
Judge Carter also asked CUC acting Executive Director Betty Terlaje and CUC Board Chair Janice Tenorio how the court can help in collecting government arrears.
Variety learned that the Commonwealth Healthcare Corporation owes CUC $60 million but is making a monthly payment of $525,000 as part of a negotiated agreement signed in May 2023.
The Public School System has no arrears and is current in its payments, Variety also learned.
Last year, CUC sent 16 disconnection notices to government agencies and departments regarding past due utility bills totaling $59,764,523.30.
Judge Carter also discussed the recent status reports regarding CUC’s compliance with the stipulated orders, and asked CUC when was the last time it increased its base rate.
CUC said it has not raised its base rate since 2014.
CUC’s electric rate has two components: the Fuel Adjustment Charge or FAC and the base rate. FAC is set monthly and reflects the price of fuel used by CUC for its power plants. The base rate, for its part, is used to fund operations, projects, debt services, or any non-fuel related expenses.
Among those who attended the status conference on Monday were U.S. Department of Justice attorney Elizabeth Loeb, U.S. Environmental Protection Agency Enforcement Officer John Tinger, EPA regional counsel Janet Magnuson, EPA Project Manager Russell Mechem, CUC legal counsel Hunter Hunt, Assistant Attorney General Alison Nelson, who represented the CNMI government, CUC Deputy Executive Director Kevin Watson, CUC Technical Manager for Oil Rachel Wehlburg and CUC engineer Nicolette Villagomez.
Judge Carter is scheduled to tour the CUC facilities today, Tuesday. He continued the status conference for Wednesday, Feb. 28 at 3 p.m.
Carter is a judge of the U.S. District Court for the Central District of California.
About the stipulated orders
In November 2008, after EPA cited CUC for violating the Clean Water Act and the Safe Drinking Water Act, the federal court issued Stipulated Orders 1 and 2.
SO1 focuses on CUC’s management structure, drinking water and wastewater issues while SO2 pertains to oil issues.
