Wapa

PSC Approves LEAC Increase to 22.22 Cents as Cost of Oil Goes Up; Commission, WAPA Dissatisfied With Rate Adjustment Process

Members of the V.I. Public Services Commission on Friday approved a motion that will see an increase in the Levelized Energy Adjustment Clause, or LEAC, moving it to 22.22 cents for the period March 1 through June 30. The adjustment was presented by PSC Chairman David Hughes who expressed dissatisfaction with the suggested increase from PSC consultant Larry Gawlik, as well as the suggested increase proposed by staff at the V.I. Water and Power Authority. WAPA had asserted a rate increase of 25.78 cents while the PSC consultant offered a competing calculation of 23.14 cents. The current LEAC is 17.260 cents. The LEAC change was a long time coming, as the cost of oil has been steadily increasing. The ongoing war in Ukraine has further roiled markets, with the Brent Crude oil, which is the global benchmark, surging to over $100 Thursday before settling at around $91.90 as of Friday. After listening to arguments from both sides which focused on the continuous cost of oil on the internat...