💧 Water and Power · St. Croix, VI
WAPA board approved propane price increase that it said would not raise customer rates
The Virgin Islands Water and Power Authority’s governing board voted 6-3 on September 1, 2020, to approve a five-cent increase in the per-gallon price of propane fuel, according to the utility.
WAPA said the increase would not affect customers’ electric rates and would be absorbed in the authority’s operating budget. The utility said the change was requested by fuel supplier VITOL, which sought to continue forbearance it had provided during the COVID-19 pandemic.
According to WAPA, VITOL said propane purchases had fallen below earlier projections. The utility said it had originally estimated monthly demand at 240,000 barrels, but actual purchases were closer to 150,000 barrels as more efficient generating units were adopted and generation load declined after the 2017 hurricanes.
Executive Director Lawrence Kupfer told board members the increase amounted to about $300,000 per month. He said an all-diesel operation at both power plants would cost about $3 million per month and would create greater reliability concerns, particularly on St. Croix.
WAPA said all nine board members attended the emergency meeting.