Hugo Hodge, WAPA Board Praise 2014 Fiscal Report As Coverage Ratio Increases

Virgin Islands Water and Power Authority (WAPA) officials and board members are praising the semi-autonomous entity's latest audit that revealed its coverage ratio (the measure of a company's ability to meet its financial obligations) was much higher than expected -- reported at 225 percent -- well over the required 125 percent. The higher the coverage ratio, the better the ability of the enterprise to fulfill its financial obligations to its lenders, WAPA pointed out. "We've had a good 2014, and we’ve exceeded all of the coverage requirements for the electric system," said WAPA Executive Director, Hugo Hodge. According to BDO USA, LLP, which conducted the audit that covers fiscal year ending June 2014, WAPA's water system's net position increased by $3.7 million, or 8 percent, as a result of better operations. The company's operating and production expenses saw a drop from $36.0 million to $29.9 million, which, compared to 2013, is a decrease of 17 percen...