Bryan, lawmakers discussed emergency funding for WAPA after Vitol halted propane deliveries

Gov. Albert Bryan Jr., Lt. Gov. Tregenza Roach and all 15 senators of the 33rd Legislature met by videoconference on Dec. 21, 2019, to discuss emergency funding for the Virgin Islands Water and Power Authority after propane supplier Vitol halted deliveries.

According to Government House, Vitol had issued WAPA a default notice on Dec. 20, 2019, saying it would suspend propane deliveries at noon on Dec. 21. At about 11 a.m. on Dec. 21, Vitol ceased operations at its propane facility, forcing WAPA to shut down propane-fueled generators and rely on older generators using No. 2 oil.

Government House said WAPA officials told lawmakers the utility did not have enough revenue to cover the higher fuel costs and could not sustain electrical generation without an immediate cash infusion.

After a meeting that lasted about 2 1/2 hours, senators agreed to consider convening in special session during the following week to appropriate more than $3 million to cover WAPA’s immediate shortfall and resume propane supply.

The meeting also addressed longer-term options, including support for a base-rate increase and possible legislation to ensure any added revenue would be used for its intended purpose. Government House said senators also sought more transparency from WAPA on the use of previous rate increases and on billing practices.

Government House said Bryan, senators and WAPA officials planned to meet again on Dec. 23, 2019, to continue discussions.

Official source: https://www.vi.gov/governor-bryan-33rd-legislature-discuss-solutions-to-wapa-propane-crisis-in-emergency-meeting/