“AT the end of the day, the hospital is the lifeline of the community,” Gov. Arnold I. Palacios said when asked about the Commonwealth Healthcare Corporation’s request to pay the commercial utility rate instead of the much higher government rate.
“I believe it’s a reasonable request. Having a government rate is very high, it’s the highest tier,” he said in an interview with reporters Wednesday.
Last week, Palacios signed into law Senate Bill 23-17, which allows CHCC to pay the commercial utility rates for electricity, water and wastewater. The measure is now Public Law 23-30.
The Commonwealth Utilities Corporation has expressed concern about the bill, saying it will financially impact everyone, as the difference will have to be absorbed by other ratepayers.
Palacios said he “reviewed the CUC executive director’s comment that he submitted to the Senate …. I certainly understand their concerns.”
The new law noted that CUC “has threatened to disconnect CHCC from utility services for CHCC’s failure to pay its utility bills at the higher government utility rate.”
Early this year, CUC’s accounts receivable report stated that CHCC owed CUC $60.5 million in arrears mostly for water usage and penalties.
