PSC Cuts LEAC to 17 Cents, Bringing Relief to Customers; WAPA Warns of Financial Collapse and Irresponsible Governance

On Tuesday, the V.I. Public Services Commission voted to reduce the Levelized Energy Adjustment Clause on electricity bills from 22.22 cents per KWh to 17 cents.  The V.I. Water and Power Authority had requested that the LEAC be maintained in order to give them the opportunity to recover deferred fuel costs. However, as Jamshed Maden of the Georgetown Consulting Group put it, “WAPA’s ratepayers have been waiting nearly a decade for more level and efficient generation-associated rate relief.” About the request that the LEAC remain at 22.22 cents, “staff does not believe that this is a reasonable assumption,” Mr. Maden said. The consultant noted that WAPA’s four Wartsila generators are now running on propane – a substantially cheaper fuel than diesel. Despite this, he indicated that the utility had not yet signed a new fuel supply contract for LPG, instead still relying on an extension of their contract with VITOL, which comes with an associated transportation cost of 59.5 cents per ga...