By Bryan Manabat
[email protected]
Variety News Staff
ASSISTANT Attorney General Alison M. Nelson has submitted a detailed status report to the District Court for the Northern Mariana Islands, outlining the CNMI government’s remaining utility arrears to the Commonwealth Utilities Corporation and the steps underway to address them.
In a filing dated Feb. 13, 2026, Nelson reported that as of Jan. 31, the CNMI government owed $2.22 million across all branches, including $1.53 million in usage charges and $697,780 in penalties and interest. After applying payments already approved or in process, only $360,609 in usage charges remain unpaid.
Most agencies now carry balances below $20,000. Larger outstanding amounts include $118,810 owed by the Department of Public Works, $85,026 by the Department of Corrections, $86,199 by the Judiciary, $86,638 by the Mayor of Rota, and $174,451 by the Mayor of Tinian.
Nelson said available appropriations and Memoranda of Agreement funds are sufficient to cover all remaining usage charges. However, the nearly $700,000 in penalties and interest will require a future offset agreement with CUC.
Unpaid OPA fees
The report also updates the court on a $3.9 million offset agreement executed on Sept. 30, 2025, which allowed the government to apply part of CUC’s unpaid 1% Office of the Public Auditor fee toward its arrears. That agreement brought CNMI government usage charges current to support the transition to prepaid meters.
CUC still owes about $4.8 million in remaining OPA fees, Nelson said, adding that additional offsets are anticipated, but no negotiations are underway at this time.
Prepaid meter transition
The CNMI government has transitioned 95 meters to prepaid service since January 2025, including 57 since June, Nelson said. Another 109 active meters are still awaiting conversion, he added. Two Department of Corrections accounts and DPW streetlight accounts cannot be transitioned due to public safety concerns, he said.
Nelson said the Department of Finance has requested updates from CUC on the remaining transitions but has not received a response.
Proposed changes to utility theft law
The Office of the Attorney General is also seeking legislative action to strengthen the CNMI’s utility theft statute. Current law requires prosecutors to prove “intent to deprive,” which Nelson said is difficult to establish.
A proposed amendment would add a rebuttable presumption of intent, similar to laws in other jurisdictions. Attorney General Edward Manibusan transmitted the draft bill to the Legislature on Oct. 1, 2025, where it remains pending.
Nelson told the court that the CNMI is prepared to discuss the report at a future status conference.
CHCC arrears
Separately, CUC Chief Financial Officer Betty Terlaje told the board at its Feb. 10 meeting that the Commonwealth Healthcare Corp. is behind on two months of utility payments — December and January.
“They are behind in their current utility bills for December, which was due at the end of January,” Terlaje said. “At this time, there are two billings due — December and January. The MOU is due on Feb. 10, which is today. So at the end of the day, we expect to receive perhaps the MOU payment and the December billing as well.”
Terlaje did not provide a total amount currently owed by CHCC. Under a new Memorandum of Understanding signed in November 2025, CHCC agreed to pay CUC no less than $150,000 on the 10th of each month beginning Nov. 10, 2025, to address its $30.6 million in utility arrears.
Background
In November 2008, after the U.S. Environmental Protection Agency cited CUC for violations of 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-related matters. Both orders require regular status reports to the court.
Designated Federal Judge David Carter is expected to hold a hearing on Feb. 20.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
