The Commonwealth Utilities Corporation in the Northern Marianas is against a bill that aims to provide rate relief to public schools.
It says that the CUC will incur huge losses if charges for the school system are lowered without a corresponding budget allocation for other agencies.
The acting executive director Alan Fletcher says if the school rates are lowered without a corresponding budget allocation there is likely to be more financial instability at the utility company.
The government is planning huge cuts to the rates that the schools would pay for water and sanitation services.