💧 Water and Power · St. Croix, VI
WAPA disputed St. Croix Avis report on rates and sought retraction
The Virgin Islands Water and Power Authority said on June 8, 2022, that a St. Croix Avis article published that day incorrectly reported that WAPA planned to raise electricity rates by 39%.
In a statement, WAPA said its strategic plan did not propose a 39% rate increase, a residential rate of $0.57 per kilowatt-hour, or increases of $0.10 per kilowatt-hour in the Levelized Energy Adjustment Clause and $0.06 per kilowatt-hour in the base electrical rate. The authority said the plan stated that its cost to serve customers was 39% higher than the rate it charged, and that its cost of providing electricity was $0.57 per kilowatt-hour compared with a regulatory rate of $0.41 per kilowatt-hour.
WAPA also disputed the newspaper's characterization that Chief Executive Officer Andrew Smith was seeking to raise revenues through customer rates. The authority said Smith had referred instead to new revenue sources outside customer rates, including an additional standpipe for water haulers and electric-vehicle charging stations.
The authority said the article's front-page photograph showed a Limetree Bay facility rather than a WAPA facility.
WAPA said one point in the article was accurate: that the utility faced financial pressure because its cost of service exceeded the rate it could charge. The authority said its 12-month strategic plan focused on cutting costs rather than increasing rates. It also said it paid about $660,000 a month to lease one generator and was negotiating to purchase leased generation equipment.
WAPA asked the St. Croix Avis to publish a front-page retraction.