💧 Water and Power · U.S. Virgin Islands
WAPA board approved credit-line extensions, debt-payment deferral and most insurance renewals
The Virgin Islands Water and Power Authority’s governing board approved extensions of existing credit lines with FirstBank, deferred a $1.3 million debt-service payment on a federal water-system loan and renewed annual insurance policies except windstorm coverage at its monthly meeting in early May 2021.
WAPA said FEMA agreed to delay the $1.3 million loan payment until July 2021.
The board also approved a 90-day extension of credit lines through July 31, 2021. WAPA said the facilities included $10 million and $4.8 million for the electric system, $1.1 million and $2 million for the water systems, and a $50 million overdraft credit facility.
Board members discussed windstorm insurance but took no action. WAPA said insurance consultant Willis Towers Watson told the board that obtaining windstorm coverage was difficult because of losses from the 2017 hurricanes and pending litigation tied to those claims. The board was considering an alternative policy that would provide $10 million in coverage in the event of a major hurricane.
In executive session, the board discussed legal and personnel matters and voted unanimously to begin interviews for WAPA’s general counsel position. Attorney Dionne Sinclair was serving as acting general counsel.
In his monthly report, Interim Chief Executive Officer Noel Hodge said WAPA was monitoring rising propane costs and hiring temporary meter readers to reduce estimated bills. He said the estimated-billing rate was 8% and that the authority’s goal was to reduce it to less than 2% per billing cycle.
WAPA said seven board members attended the meeting and one member, Elizabeth Armstrong, was excused.