The Commonwealth Utilities Corporation (CUC) is moving forward with a new agreement to settle millions in utility arrears owed by the CNMI government and the Commonwealth Healthcare Corporation.
Assistant Attorney General Tina Ngo, legal counsel for CUC, told the federal court that a new Memorandum of Understanding is expected to be signed this month. The deal will offset $7.9 million CUC owes to the Office of the Public Auditor, in exchange for credit toward unpaid government utility bills.
Ngo said the agreement hinges on CUC receiving a $3.9 million grant from the Department of Finance — a check that has already been issued and is currently processing.
Meanwhile, CUC and CHCC are finalizing a separate agreement. Under the proposed terms, CHCC will pay $50,000 monthly toward its arrears while staying current on its utility bills. CHCC has already made two such payments in good faith.
The CNMI gov’t previously owed CUC $10.9 million, while CHCC owed more than $60 million in utility arrears.
The update was part of a court-mandated status report stemming from federal orders issued in 2008 after CUC was cited for violations of the Clean Water and Safe Drinking Water Acts.
