The United States Environmental Protection Agency says the utility company in the Northern Marianas has systematically failed to hire personnel in line with a federal court order.
The Commonwealth Utilities Corporation has been plagued with problems and has seen a number of high-ranking officials leave its ranks.
Under federal law, the CUC has to replace such officials within 150 days, but the utility has been unable to recruit for the vacant positions.
The EPA said the vacancies are adversely affecting operations, and despite earlier promises to search for officials abroad, it has limited its recruitment drive to local outlets.
The utility faces as much as US$40 million in federal penalties because of the unfilled vacancies.