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Concerns Mount Over WAPA Rate Hike Proposal Amid Rising Solar Adoption

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The Virgin Islands Public Services Commission expressed grave concerns on Tuesday regarding a potential increase in the Levelized Energy Adjustment Clause (LEAC) rates proposed by the Water and Power Authority (WAPA). This move, officials fear, may further shrink WAPA’s already diminishing customer base.

During a Senate Committee meeting on Government Operations, Veterans Affairs, and Consumer Protection, PSC Executive Director Sandra Setorie cautioned that raising the electric LEAC could be counterproductive. The LEAC has been held steady since 2022, falling below the actual costs of fuel and purchased power. The Virgin Islands government has been subsidizing these additional expenses, preventing them from burdening consumers. Despite this, WAPA has accumulated around $90 million in deferred balances and is considering applying for a LEAC increase to address this financial shortfall.

Ms. Setorie underscored the potential negative impact of higher LEAC rates on WAPA’s customer retention. The authority witnessed a 30% drop in sales from 2012 to 2017, a trend that might be exacerbated by increased electricity costs. She pointed out that, for many, solar and battery systems are becoming more cost-effective alternatives to WAPA’s services.

The committee, including Senator Ray Fonseca, reacted with concern to these revelations. Mr. Fonseca highlighted the vicious cycle where customer loss leads to higher bills. He inquired about WAPA’s strategies to expand its customer base, to which Ms. Setorie responded that the authority is planning to increase its focus on renewable energy sources like solar and wind to lower energy rates. WAPA’s commitment to this transition has been evident in its recent agreements for wind and solar power procurement.

Boyd Sprehn, the PSC’s general counsel, noted that WAPA anticipates lower operating costs in the future, due to sustainable energy initiatives and the transition from diesel to propane in power generation. These cost savings, he explained, could eventually be passed on to consumers.

Yet, with no concrete timeline for these developments, committee members, including Senator Milton Potter, expressed concern about WAPA’s immediate and long-term viability amidst increasing customer migration to alternative energy sources. Ms. Setorie concurred, acknowledging the risks faced by all power utilities in this changing landscape.

The PSC remains committed to guiding WAPA in integrating alternative energy, despite the slow pace of progress. Senator Novelle Francis raised concerns about the impact on vulnerable citizens who rely on WAPA, pointing out that those who can afford to leave the system are doing so, leaving those with limited means more exposed to potential cost increases. This scenario could necessitate continued government subsidies for WAPA, further straining public resources.

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WAPA

PSC Commissioner Calls for Hiring of Hearing Examiner Amid Concerns Over Water Safety in St. Croix

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During a recent meeting with representatives from the Water and Power Authority (WAPA), Public Services Commission (PSC) member David Hughes expressed significant concerns about the current state of water testing in St. Croix, following last year’s alarming discovery of elevated levels of lead and copper. Hughes pressed for immediate action, questioning the delay in hiring a hearing examiner—a role outlined on the PSC’s website as crucial for overseeing utility compliance with regulations.

Hughes emphasized that the role of the hearing examiner is to work closely with utilities to ensure they meet the commission’s standards, particularly in regular testing to safeguard public health. “The PSC should be actively ensuring that WAPA maintains a consistent testing program that we can trust on behalf of consumers,” he stated.

The dialogue grew tense when Hughes criticized the commission’s efforts, responding to PSC Executive Director Sandra Setorie’s assurances that progress was being made with, “We as a Commission are not fulfilling our obligations.” He pointed to WAPA’s reactive measures—conducting 65 water tests in response to complaints about water discoloration—as insufficient and indicative of a need for a robust, ongoing testing program.

WAPA’s Director of Water Distribution for St. Croix, Don Gregoire, defended their practices, stating that the water is tested daily in their own laboratory, following EPA guidelines which now mandate biannual testing. However, Hughes countered that without full transparency and understanding of the testing procedures, the commission could not confidently endorse the program.

The urgency for better oversight was further highlighted by a lawsuit alleging serious deficiencies at the St. Croix laboratory, including outdated certifications and improper sample collection. These revelations support Hughes’s argument for enhanced oversight to ensure WAPA’s accountability and transparency.

Hughes also pointed out a broader issue of information deficit and lack of transparency from WAPA, underscoring the PSC’s duty to keep the public informed. “We’re not doing our job in regulatory oversight,” he lamented.

In a positive note, WAPA Chief Operating Officer for Water, Noel Hodge, announced a substantial FEMA grant aimed at overhauling St. Croix’s water infrastructure over the next two decades, with a detailed capital improvement plan underway and initial construction expected to start within three years.

Hughes’s call for the appointment of a hearing examiner underscores a critical need for PSC to enhance its regulatory role and ensure that such public health emergencies do not recur, reflecting a commitment to uphold safety and transparency in public utilities.

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Nearly All Impacted by WAPA Billing Error Receive Refunds

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The Virgin Islands Water and Power Authority (WAPA) has resolved a billing error that inadvertently affected around 3,000 customers due to a glitch during system testing. The mishap occurred on Monday evening when, during a routine trial in their billing system’s test environment, unintended charges were mistakenly applied to customer accounts.

WAPA acted promptly to address the error, successfully reversing the incorrect charges for all affected accounts except two. Customers who were impacted should see a reversal transaction on their account statements, which will display as a negative amount reflecting the refund.

The utility also clarified that for those customers whose charges are still showing as pending on their bank statements, these will automatically be removed without any action needed from the customer. WAPA stressed that these pending charges will simply disappear, and the customer’s balance will adjust accordingly.

WAPA expressed regret over the confusion and inconvenience caused by the glitch. They are currently making efforts to ensure all remaining issues are swiftly corrected to prevent future occurrences.

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Rotational Power Outages Scheduled in USVI Due to Weather and Equipment Challenges

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The Virgin Islands Water and Power Authority (WAPA) has scheduled rotational power outages across the St. Thomas/St. John and St. Croix districts. This decision stems from challenging marine weather conditions and malfunctioning generation units. The authority views these outages as a strategic approach to circumvent more extensive power disruptions and to keep electricity flowing in critical areas.

Ashley Bryan, WAPA’s Chief Operation Officer, emphasized the necessity of these outages. “While we recognize the disruptions our decision may cause, these measures are crucial to prevent broader outages and ensure ongoing electrical service over the weekend,” Bryan stated. She further highlighted the efforts to balance the impact of short-term outages on fewer customers against the risk of more widespread blackouts.

Specifically, in the St. Thomas/St. John district, the combination of adverse weather and a dwindling fuel supply raises the potential for widespread power failure. To counter this threat, WAPA plans to initiate rotational outages from late Friday or early Saturday, continuing through Sunday, prioritizing electricity for essential services.

In St. Croix, the problem is compounded by several offline generation units, which will lead to reduced power output from the Estate Richmond Power Plant beginning Saturday. To manage this, the authority will implement outages during peak times—noon to 1:00 p.m. and 4:00 p.m. to 7:00 p.m.—until further notice. WAPA is calling on all residents and businesses to conserve energy, which is vital for stabilizing the grid and ensuring functional feeders.

WAPA is actively working on these challenges to reduce the frequency and duration of disruptions and extends its apologies for any inconvenience these necessary measures may cause.

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