U.S. VIRGIN ISLANDS— Following today’s vote to reprogram funds to pay Vitol, Governor Albert Bryan Jr. thanked senators of the 33rd Legislature for working collaboratively with the executive branch to address the VI Water and Power Authority’s (WAPA) propane supply crisis.
“Thank you to the senators who voted in favor of reappropriating funds to avert a crisis that would have significantly and negatively impacted the people of this territory,” Governor Bryan said shortly following the vote. “This is a clear indication that no matter where we stand on the issues, the executive and legislative branch can work collaboratively for the people of the Virgin Islands.”
The vote was taken during an Emergency Legislative Session held on St. Thomas where senators considered testimony provided by VI Office of Management and Budget Director Jenifer O’Neal on the availability of VI government funding, from WAPA officials on the utility’s financial status and from Public Services Commission (PSC) officials on their decision not to consider WAPA’s request for a base rate adjustment.
Following several hours of testimony, senators voted to reappropriate $6 million in funding from FY 2020 budget to assist WAPA in meeting its financial obligation to Vitol for December 2019 and January 2020.
Senators also voted to require semi-autonomous agencies and instrumentalities of the VI government to submit a quarterly financial report to the Legislature effective January 2020.
Senators voting in favor of the reappropriation were Marvin Blyden, Dwayne DeGraff, Novelle Francis, Donna Frett-Gregory, Kenneth Gittens, Stedmann Hodge, Jr., Javan James, Steven Payne Sr., Janelle Sarauw, Athneil Thomas and Kurt Vialet. Senators Allision DeGazon, Alicia Barnes, and Oakland Benta were absent for the vote.
“The reappropriation of $6 million in funds is only a short-term fix, and now we have to look more comprehensively at the long-term solution,” Governor Bryan said of Friday’s vote. “We must address WAPA’s request for a base rate adjustment to help to stabilize the utility’s unstable financial position.”
The adjustment requested by WAPA — which is still on the table with the PSC — would not have resulted in a rate increase to the ratepayer because it was balanced by the decrease in the fuel charge and the discontinuation of the generator surcharge, the governor stated. The PSC did, however, unanimously vote to decrease the electric and water Levelized Energy Adjustment Clause (LEAC) rates.
“But I also acknowledge and share the serious concerns of the all sitting senators over WAPA’s lack of transparency about its financial situation,” the governor said. “There must be accountability and assurances from WAPA for us to move forward. The people of the territory will no longer accept lip service, and we must hold WAPA’s feet to the fire.”
Governor Bryan has said that his Administration and the Legislature have agreed that WAPA needs to fulfill its obligations to the ratepayers by making needed improvements to its management structure and by resolving billing discrepancies.
The emergency legislative session was called following meetings held on Saturday and on Monday between Governor Bryan, Lieutenant Governor Tregenza Roach, and all 15 senators of the 33rd Legislature to address WAPA’s propane supply crisis.
On Saturday, Dec. 21, Vitol ceased supplying propane to WAPA following a default notice issued on Dec. 12. The move effectively forced WAPA to shut down its most efficient propane-fueled generators and began using more expensive No. 2 oil on its older, less efficient generators.
WAPA officials have said the utility does not have revenues to pay the higher fuel costs and will not be able to sustain electrical generation without an immediate infusion of cash.