Political Rewind: Lowering Energy Bills
Buckling under the pressure of the frequent rate increases? Impatient waiting for action from your government? Candidate deJongh’s reply in the October 31, 2006 VI Daily News Voter Guide: (click image below to view)
Talks only started on March 14th of 2008 , a whole year and 3 months after inauguration. We hope progress comes before “pressure bust pipe” but we’re not holding our breath.
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DeJongh can’t do anything about the high cost of fuel. But he does have control over WAPA’s inflated operating budget, wasteful capital expenditures and their operating deficiencies.
He should start by streamlining their operating practices, modernizing the antiquated power generation equipment and updating the electrical distribution sub-systems. If the cost for modernizing is too great for the treasury to bear…then sell the bastard child.
Ultimately, WAPA and the high utility costs is DeJongh’s responsibility to solve, not Hovensa.
My take is that the candidate had answers and plans for dealing with WAPA and the high rates. Once elected, those plans were not acted upon, until now, over a year later. My question would be- Would he have initiated talks with HOVENSA if the rates remained at 2006 levels?
My general feeling is that HOVENSA has some influence over the governor. Perhaps, they contributed to his election. I think that the last gubernatorial election was the most expensive in VI History- hence political favors galore.
Let’s go back in history for a moment. After Hugo devastated the refinery in ‘89, the Farelly administration gave them huge, but limited tax incentives to stay and re-build. I think we all agree that was the right move at the time.
It was during the Schnieder administration when the contract was renewed for an additional twenty years and the two cent VI excise tax per barrel disaster. More than likely, that’s when money exchanged hands. Because shortly thereafter, Hess announced they’d start refining third party oil shipped in from foreign countries.
Knowing a little about corporate lawyers, I can assure you, that contract must be IRON CLAD. So they don’t have to deal with or pay Dejongh anything for another decade. Dejonghs’ out of his depth in negotiations with
Hovensa.
The solution is to modernize or sell WAPA. We’re not going to get anything from Hovensa that the contract doesn’t specify.
The Governor needs to follow through on his campaign promises, however I agree he is “out of his depth in negotiations with Hovensa.” This is why he needs to solicit the services of negotiators familiar with the energy industry. Unfortunately I wouldn’t encourage anyone to hold their breath waiting for that to happen.
What Have They Done?
By Gonzalo Rivera
Dear Editor,
Eighteen months ago we went to the polls and elected a new governor and fifteen senators to represent us, yet today we are faced with the same challenges that existed at the time. Only difference between now and then is the fact that our representatives receive a bigger salary in exchange for increasing the number of people living in poverty.
The challenges related to families living below the poverty level, the escalating crime problem, the high cost of living to include the WAPA issue, the education of our children and accountability and transparency in government have all worsen. They voted to allow finance companies to charge more interests for unsecured loans. They set aside money to pay for illegal contracts for a second time and approved increases for government employees to pay more for their healthcare plan and medications.
Our leaders spend more time promoting their egocentric agendas, than they do advancing the bread and butter issues of the people. Their inability to collaborate on brainstorming solutions to the high cost of living is the primary reason why many in this community live from paycheck to paycheck or worst a life in poverty.
Take the WAPA issue for example; our leaders remain dormant on any possible solution, while there are a number of more affordable alternative energy production methods available today. No amount of political pontification will provide the people lower rates.
I recommend that the Public Finance Authority assist WAPA in obtaining the necessary financing for the design and construction of a new power plant, which can then be tied to the existing grid. WAPA already owns property on the south shore that can be used for that purpose.
The enabling legislation which created the Public Finance Authority states that “The PFA is a public corporation and autonomous government instrumentality for the purposes of aiding the Government in the performance of its fiscal duties and in effectively carrying out its governmental responsibility of raising capital for essential public projects”. Why then is governor DeJongh who is the Chairman of the PFA and our fifteen senators allowing our people to suffer while WAPA continues to depend on a third party to finance a modern cost efficient plant? The bids recently received by WAPA will not produce the best possible price to the ratepayers; since they will all involve a purchase power agreement negotiated around the soaring cost we now pay WAPA. We are wasting precious time.
We should also initiate discussions with the owners of the Renaissance Park regarding the possible sale of the property to the government as a short term alternative to the current high cost of electricity.
The hard reality of the energy crisis is that we must lessen or completely eliminate our dependency on oil fired generating equipment. The only way to do this is by investing in other more affordable power generating facilities. My solution to this problem is feasible; the PFA has sufficient bonding capacity to assist WAPA and bring the relief the people deserve.
Simply sitting back and doing nothing, will equate to more businesses closing down and more people falling into poverty, while others struggle to keep their heads above ground.
Almost all the senatorial candidates are saying they’ll negrotiate with Hovensa, None of them has the power to do so and the governor has already tried and failed. Most of the candidayes also oppose the sale of WAPA. The only candidate that makes sense when speaking about these issues is Dwain Ford.