By Bryan Manabat
bryan@mvariety.com
Variety News Staff
THE Commonwealth Healthcare Corporation has avoided utility disconnection after signing a new Memorandum of Understanding with the Commonwealth Utilities Corp. on Friday at the Governor’s Office.
Under the updated agreement, CHCC will 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. CHCC’s arrears are mostly related to water usage and penalties.
CUC Executive Director Kevin Watson told Variety that CHCC must prioritize repayment of its arrears over other obligations. After one year of payments — and annually thereafter — CHCC will review its financial status and notify CUC in writing if it can increase the monthly payment. That notice alone will authorize a higher payment amount.
“In no event will CHCC claim an inability to pay less in amount or frequency than the monthly amount required by Term 1,” Watson said.
The MOU will remain in effect until the full outstanding balance is paid.
CUC Chief Financial Officer Betty Terlaje said the agreement and CHCC’s first payment — expected Monday — will cancel the scheduled disconnection.
CHCC Public Information Officer Lee Tenorio issued the following statement:
“CHCC is pleased to announce that it has reached an agreement with CUC to make monthly payments of $150,000 toward outstanding arrears, ensuring that CUC will not disconnect services during this period. We extend our gratitude to the governor, the secretary of Finance, and the Commonwealth Medicaid Office for their crucial roles in facilitating this agreement. Their support has been instrumental in solidifying this arrangement and allowing CHCC to continue providing essential services to the community.”
On Nov. 5, the CUC board of directors voted to stay a Nov. 10 disconnection notice to CHCC to allow further negotiations. All four board members present — Chairman Allen Perez, Vice Chairman Donald R. Browne, Rebecca White, and Miranda Manglona — supported the motion, which authorized CUC management to meet with Gov. David M. Apatang’s administration and CHCC leadership.
“We’ll now leave it to management to go ahead and communicate with the secretary of Finance and CHCC to finalize this MOU,” Perez said.
During the meeting, board members noted that CHCC had failed to stay current on its previous $50,000 monthly payment agreement. CUC said the last payment received under that MOU was in July 2025.
CUC says CHCC owes $30.6 million in utilities.
It is not immediately clear if the $30.6 million in arrears accrues interest, and what annual percentage rate applies to the overdue amount.
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.
