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PSC Decides to Hold Electric LEAC Rates Constant Until Year’s End

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Close up of water meter with rotating digit.

The Public Services Commission (PSC) announced its decision on Tuesday to preserve the current electric Levelized Energy Adjustment Clause (LEAC) rate at 22.22 cents per kilowatt-hour. This decision, which was nearly unanimous with Commissioner Andrew Rutnick abstaining, implies that until December 31, 2023, residents of USVI will be charged 40 cents per kilowatt-hour for the initial 250 kWh, escalating to 43 cents thereafter. In contrast, commercial users are billed at a flat rate of 43 cents per kilowatt-hour.

This ratified rate, effective from October 1, 2023, was endorsed during a standard meeting steered by Vice-Chair Pedro Williams, as Chairman David Hughes was absent. Despite the unanimous vote, Commissioner Rutnick chose not to participate.

The Georgetown Consulting Group’s Jamshed Madan presented data that played a role in the Water and Power Authority’s (WAPA) late-July preliminary filing. This filing estimated the LEAC rate at a higher 23.90 cents per kilowatt-hour. This surge was attributed to anticipated hikes in oil prices, projected to escalate from $2.44/gallon in 2021 to $3.14/gallon within the specified forecast period. Alongside, the cost for LPG deliveries has surged, exceeding the PSC-endorsed 33 cents/gallon rate. Despite these economic pressures, WAPA has opted not to advocate for a rate exceeding the current 22.22 cents at the moment.

An intriguing element shared by Madan was the non-inclusion of four Wartsila generators in WAPA’s recent documents. Procured in 2021 and commissioned in August, these generators, Madan argued, should have been integrated into the energy cost projections. Offering more clarity, WAPA’s Executive Director, Andrew Smith, indicated that the infrastructure essential to operate these units using propane wouldn’t be operational until mid-November. Madan emphasized that incorporating propane might have led to a LEAC rate even more competitive than the current 22.22 cents.

Looking Ahead: LEAC Review Recommendations

Madan proposed that the PSC retain the prevailing LEAC rate for the upcoming quarter, while also expecting an updated filing for the January-March 2024 span by October 15 of the current year. He further proposed transitioning to a biannual LEAC assessment, to be updated every April 1 and October 1, in lieu of the current quarterly revisions. Despite this, WAPA would remain legally obligated to provide quarterly updates but could request mid-term rate adjustments if required.

Chairman Hughes expressed the need for more comprehensive discussions concerning the LEAC rate review frequency—whether to continue quarterly or move to a semi-annual system—as well as other consultant inputs, to be discussed in future meetings.

In conclusion, despite pressures from anticipated oil price hikes and LPG delivery rate increases, the PSC’s decision leans towards maintaining the LEAC rate.

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Government

Central Government Staff Honored at Employee of the Year Ceremony

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The Government of the Virgin Islands recently celebrated its most outstanding employees in a series of ceremonies on St. Croix and St. Thomas. More than 6,000 government employees were eligible, but only a select few were honored for their exceptional service and contributions to their divisions and the community.

At the ceremony in St. Croix, Division of Personnel Director Cindy Richardson highlighted the critical role these employees play in enhancing the operations of their agencies and improving the quality of life across the territory. She lauded the honorees for their exemplary service and professionalism.

Governor Albert Bryan Jr. dispelled the notion that government workers are lackadaisical, instead praising the honorees for their dedication and impact. “You are pretty special,” he affirmed, acknowledging their positive influence within the community and among their colleagues.

Senate President Novelle Francis identified the honorees as the “cream of the crop,” and spotlighted Alfred Donowa, the employee of the year from the facilities management division in St. Croix. Donowa was praised for setting a high standard for his team. In St. Thomas, Adele Thomas was recognized as the employee of the year for her role as a receptionist in the Legislature’s offices.

The Lieutenant Governor Tregenza Roach also took part in the celebrations, commending employees like Carmen Francis from the Real Property Tax Division for her exceptional customer service, and Chris George from the Geographic Information Systems Division for his leadership.

The ceremonies not only recognized the honorees’ professional excellence but also their passion for their roles within the government. Lieutenant Governor Roach emphasized the importance of ongoing professional development to maintain job satisfaction and retain valuable staff.

The list of honorees included individuals from various departments such as Rachel Haverkorn of the Office of the Governor and Marianne Navarro from the Virgin Islands Lottery. From the Department of Agriculture, Maxine Richards was honored, and from the Department of Licensing and Consumer Affairs, Diana Gumbs took the title. Belgrave Stedman was recognized from the Water and Power Authority, celebrated for his achievements despite public skepticism about the utility’s successes.

These ceremonies serve as a vital reminder of the dedicated individuals who contribute significantly to the functioning and improvement of government services in the Virgin Islands.

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Governor Bryan Nominates Gordon Rhea as USVI’s New Attorney General

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Governor Albert Bryan Jr. announced the nomination of Gordon Rhea as the new Attorney General for the U.S. Virgin Islands during a press conference on Monday. Highlighting Rhea’s extensive background, Governor Bryan described him as a candidate with unmatched legal expertise and service record. Rhea’s educational journey includes degrees from Indiana University, Harvard University, and Stanford Law School.

In his early career, Rhea distinguished himself as a criminal defense attorney in Los Angeles, later contributing his expertise in Washington D.C. at the Senate Select Committee on Intelligence Activities. His professional tenure in the Virgin Islands spans over 40 years, initially serving as an assistant U.S. Attorney before moving into private practice.

Governor Bryan emphasized Rhea’s pivotal role in leading high-profile cases that have shaped the legal landscape in the territory. “His firm addressed some of the most significant legal challenges our community has encountered, such as landmark litigation against prominent industrial corporations concerning toxic exposures and environmental damage. These actions have protected our workforce and natural resources for future generations,” Governor Bryan stated. He specifically noted Rhea’s leadership in securing the largest civil jury verdict in the territory’s history, crucial for public health improvements.

Responding to his nomination, Rhea expressed his enthusiasm about the opportunity to serve as the Attorney General. Addressing potential conflicts of interest, particularly Rhea’s prior representation of a defendant in the Virgin Islands’ lawsuit against Jeffrey Epstein’s estate, Governor Bryan reassured that Rhea could recuse himself from any related cases to avoid conflicts.

Governor Bryan also shared his expectations for utilizing funds from the Epstein lawsuit, earmarked for the Justice Department. He expressed hope that under Rhea’s leadership, and pending confirmation, the funds would be used to enhance anti-trafficking initiatives and policies, pending legislative approval, which Rhea’s predecessor deemed necessary.

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New Legislation Proposes Electing Attorney General in US Virgin Islands

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Following the departure of Ariel Smith from the office of attorney general, a renewed focus has been placed on the high turnover rate among appointees to this position. This situation has spurred legislative action aimed at allowing the residents of the Virgin Islands to elect their attorney general, a proposal brought forth by Senator Alma Francis Heyliger. During a legislative session on March 25, Heyliger introduced Bill 35-0248, emphasizing the necessity to diminish the political influences on the attorney general’s office.

The forthcoming committee discussions will determine the feasibility of requesting Congress’s permission for the USVI to hold elections for the attorney general’s position, a timetable for which remains to be established. Heyliger highlighted the urgency and the widespread desire for this change, noting the successful implementation of elected attorneys general in over 40 states across the nation. She also referenced a past referendum where a significant majority of Virgin Islands residents—76 percent—voted in favor of electing their attorney general, indicating a strong local push for this amendment.

Currently, Ian Clement serves as the acting attorney general, succeeding Ariel Smith, who held the position for less than a year. Smith had been appointed by Governor Albert Bryan Jr. in March 2023, following Denise George’s dismissal, who had served for four years. This legislative proposal marks a pivotal step towards aligning the Virgin Islands with the broader trend of electing attorneys general, aiming to enhance the office’s independence and accountability to the public.

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