CPI: PRASA is leaking on receivables and payables

On February 24, 2013, the Centro de Periodismo Investigativo (CPI) reported that, as a rate hike was being discussed, the Puerto Rico Aqueduct and Sewer Authority (PRASA/AAA) confirmed receivables of more than $444 million, of which 56% — about $249.9 million — were inactive accounts “very hard” to recover. The hike was proposed, in part, to face a deficit of nearly $350 million by or before summer.

On the liability side, PRASA had debts exceeding $5,000 million, including $142 million still owed on the North Aqueduct (“supertubo”) from the Pedro Rosselló administration, according to figures PRASA itself gave CPI. Part of the bondholder agreements required the corporation to raise rates up to 4% each year; PRASA said that had not happened and contributed to the current deficit.

Another historic problem: about 60% of water put into the pipes was not billed — leaks, user theft, or faulty billing. Among active accounts, residential customers owed about $113.2 million; public residential, $50.9 million; commerce, nearly $25.0 million; industry and nonprofits, smaller figures. Fire-irrigation systems (flat rate) totaled more than $1.4 million.

Municipalities: more than $30 million in debts (San Juan ~$7.3 million; Ponce ~$4.8 million with a partial payment plan; Cataño ~$2.3 million), plus about $8 million from the Mayagüez Medical Center in litigation. Public corporations: more than $21 million (Ports ~$5.1 million for cruise and cargo services; PREPA ~$1.2 million; Maritime Transport and University Hospital ~$1.3 million each). Federal government: more than $1.5 million. Education and other central agencies also appear in CPI’s detailed list. Receivable debt ≠ theft. Operating deficit ≠ embezzlement. Primary: CPI 2013-02-24.

Source: Centro de Periodismo Investigativo. https://periodismoinvestigativo.com/2013/02/hace-agua-en-deudas-por-cobrar-y-por-pagar-la-aaa/