SAIPAN — House Transportation and Infrastructure Committee Chairman Rep. Vincent R. Aldan said the Commonwealth Utilities Corporation should not be granted emergency borrowing authority until it accounts for nearly $98.6 million in outstanding receivables shown in the utility’s own records.
In a public statement issued Monday, Aldan pointed to an August 5, 2025 letter from CUC Executive Director Kevin O. Watson, sent in response to the committee’s request for a true copy of all updated arrears of private and government entities. The letter enclosed CUC’s Accounts Receivables Aging Summary with Disputed AR as of July 31, 2025.
According to that summary, CUC’s grand total accounts receivable stood at $98,610,128.67. Of that, $77,445,854.98 was owed by CNMI, CHCC, PSS, CPA and other government agencies, while $21,164,273.69 came from residential and commercial accounts.
Aldan said the overwhelming majority of the debt is not new. The summary shows $92,610,630.40 in the 120-plus days category, including $74,383,630.56 from government accounts. The single largest balance is CHCC at $70,011,189.48. The summary also lists CNMI Central Government at $3,527,678.22, CPA at $2,583,985.34 and Other Government Agencies at $1,337,224.19, with residential accounts at $11,231,656.87 and commercial accounts at $9,932,616.82.
Aldan called the situation a collections crisis and a governance failure, and questioned how CUC can justify emergency borrowing or a line of credit while its own records show nearly $100 million in unpaid accounts, most of it more than 120 days past due. He said receivables are not the same as cash in the bank but argued that distinction makes the situation worse rather than excusing it.
Before any borrowing authority, line of credit, emergency loan or customer-backed financing is discussed, Aldan said, CUC should be required to answer publicly who owes what, what portion is collectible, what collection actions have been taken, and why the balances remain in the 120-plus days bucket. He said ratepayers should not bear new risk before CUC demonstrates aggressive recovery of money already owed.
The aging summary also shows a disputed receivables total of $9,501,663.82 and lists PSS with a net credit balance rather than an outstanding debt.
