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UNITED
STATES VIRGIN ISLANDS PUBLIC SERVICES COMMISSION
PRESS
RELEASE
May 28, 2008
On Friday, May 16, 2008, the Water and Power Authority submitted a
request for
rate increases to be effective for all bills issued on or after July 1,
2008. The Water
and Power Authority is required to file with the Public Services
Commission twice a year its forecast for oil
prices and consumption, and request for any change to Levelized
Energy Adjustment Charge (“LEAC”) six weeks before the proposed
effective date.
WAPA
requested an increase in the electric system LEAC of $0.136059 per kWh,
from the present level of $0.254733 to $0.390792 per
kilowatt/hour (kWh). The
requested increase would result in residential electric rates in excess
of $0.46 per kWh, and higher charges for business rate
customers.
WAPA is also
seeking an increase in the water system LEAC of $7.32 per 1000
gallons (Kgal), from the current $7.58 per 1000 gallons to $14.90. The
requested increase would raise the cost to
a resident for 1000 gallons of water to $29.80 per 1000 gal.
The
Commission is concerned about the effect of the escalating rates for
water and power on the public and the Virgin
Islands’ economy. Although WAPA remains entirely
oil-fired and is subject to the dramatic rise in the price of oil, that
has increased significantly over the past six
months, from approximately $90/bbl to more than
$130/bbl today, that problem has been a growing concern for several
years. There
are, however, many factors which contribute to the increasing rates;
among them are (1) the cost of oil, (2)
efficiency of the equipment and systems, (3) appropriate dispatch, and
(4) effective planning. WAPA’s ability to provide reliable and
efficient service to the Territory has been and
remains an area of great concern to the PSC, and the events of
the last week on St. Thomas only heighten that concern.
The
Commission is working in collaboration with the utility, and is in
contact with
The Honorable Delegate Donna Christiansen, and federal agencies
including the Departments of Energy, and the Interior to ensure that
everything that can be done to lower the
cost of rates, is done by the utility.
By law the
PSC is mandated to ensure that all utilities provide services that are
just, reasonable, and non-discriminatory. The PSC calls on all members
of both
the Executive and Legislative branch to work with the Authority to
ensure speedy payment of its outstanding debts in fairness
to all other ratepayers. The Commission is acutely aware of the
impact that this burden places on the Authority, which must make
adjustments to operate without the benefit of this significant
source of revenue, and the ratepayers
who are suffering reduced or unreliable services.
The
Commission will hold a hearing on this requested increase before July 1,
2008, at a date and time
to be announced. The PSC encourages the public including members of
the business community to attend this upcoming meeting, and offer
commentary to the Commission, as it continues to seek ways to ensure
that the public welfare is
secured through the provision of water and power at reasonable,
reliable, and affordable rates.
visit us at:
Sunny Isle Professional Building, Suite 8
P. O. Box 7360, Christiansted, St. Croix, VI 00823-7360
Tel. (340) 778-6010 Fax: (340) 778-0302
Barbel Plaza, No. 8 Estate Ross
P. O. Box 40, St. Thomas, VI 00804-0040
Tel. (340) 776-1291 Fax: (340) 774-4971
The Battery (Tuesday & Thursday)
Cruz Bay, St. John, VI
Tel. 776-1391
The Virgin Islands Public Services Commission ensures safe, reliable and
reasonably priced public ferry boat services, telephone, cable,
electric, potable water, wastewater and solid waste rates for Virgin
Islands consumers, by regulating public utilities. |
