Commission will reconsider Virgin Islands WAPA rate cut

The U.S. Virgin Islands Public Service Commission voted to reconsider its June order that the Water and Power Authority cut electric rates.

The commission directed its executive director to compile briefs, testimony and evidence on the rate cut and present the information at its Aug. 12 meeting.

WAPA quickly filed an appeal of the June 10th order to cut rates about 12%.

The appeal stayed the commission's order to cut electrical rates by 5.22 cents per kilowatt-hour. roughly 12%. The order impacted the Electric Levelized Energy Adjustment Clause of the authority's rates, which are supposed to cover WAPA's costs of generating electricity.

After the commission's action, WAPA said the PSC, while believing it was "advocating on behalf of ratepayers," its officials ignored consequences, and put WAPA "at risk of defaulting on its obligations to vendors, contractors, and employees."

WAPA didn't immediately provide a comment on the PSC's action on Thursday.

Consultant EY Parthenon told WAPA in January the utility could not pay its short and long-term liabilities without an infusion of at least $375 million or other major shifts.

The WAPA power division had $203.6 million in bonds and bond anticipation notes outstanding as of June 30, 2024. It had total liabilities of $1.242 billion.