💧 Water and Power · U.S. Virgin Islands
WAPA board approved temporary spot-market propane purchases through March 31, 2023
Official document: https://www.viwapa.vi/docs/default-source/news-(docs)/press-release---wapa-board-approves-purchase-of-propane-in-emergency-board-meeting.pdf?sfvrsn=434d0c35_2
The Virgin Islands Water and Power Authority’s governing board approved temporary authorization on December 23, 2022, for the utility to buy spot-market propane through March 31, 2023.
WAPA said the approval was intended to reduce the utility’s reliance on diesel after propane deliveries were suspended at the end of November 2022.
The board authorized propane purchases at a cost of up to the equivalent of $500,000 a day. WAPA said it had previously averaged $350,000 to $400,000 a day for propane under its prior contract.
According to the authority, the higher authorization was meant to provide flexibility if market prices or transportation costs changed and because spot-market purchases could require payment for an entire delivery at once.