WAPA Can Do Better
On Tuesday, the PSC board approved a 22.9-percent increase in the electric Levelized Energy Adjustment Clause (LEAC) rate and a 14.6 percent increase in the water LEAC rate. This action will raise the average monthly residential electric bill to $209.29 and the average residential water bill to $63.16 for a household using 2,400 gallons a month, according to the St. Thomas Source newspaper.
We are all aware of the global energy crisis – this is not a territory specific problem. But this is a multi-layered problem and the only option that was executed is one that places the financial burden on the backs of the residents of the territory – residents who are already struggling with the cost of other basics like food, recently shown to outpace urban mainland locations in cost.
What’s even more infuriating is that these increases, slated to go into effect at the beginning of July, are being levied on consumers when the government owes millions in overdue payments to the strapped utility.
During Monday’s meeting of the Government Operations and Consumer Protection Committee, senators discussed the government obligation as one possible element of a WAPA solution but did not propose any immediate action to make that payment happen. There is no more pressing need facing this administration than the energy debacle and while there are several other alternatives that need examination, this is one that should be executed with all due haste. Pay your bill.
But the solution to this problem is not a simple one, and its depth is the result of many years of chronic neglect of responsible energy planning and infrastructure maintenance.
Targeting the Hovensa agreement is only one factor in the discussion. Even if the two-year price freeze that was suggested was implemented, the utility would still be running at a financial deficit and additionally, would not be generating the revenue necessary to implement any alternative fuel options. I’m not saying that discussions and negotiations should not be held to determine what potential agreements may be reached with Hovensa to address this dilemma, only that this would be an element and not the entire solution to the problem.
At its current spending rate, WAPA’s fuel costs have already surpassed 80% of its operating budget and are now affecting funds earmarked for personnel and insurance costs and maintenance projects. And, according to WAPA Executive Director Hugo Hodge Jr, the company ‘s cash shortfall, if it continues at its current monthly rate of $5.4 million, will result in the utility coming up another $64 million in the red over the next 12 months.
In my view, there are two immediate priorities WAPA must face; the repair and upgrade of its current physical plant and the concurrent acceleration of alternatives for other energy sources.
Old, inefficient equipment does not make the most efficient use of fuel, and contributes significantly to the waste of this expensive commodity. So, whatever the cost, until funds are available to implement alternative fuel options, this step must be taken to assist maintaining and improving the current efficiency levels of the utility’s operation while mitigating the financial waste the current plant generates.
But the only long term solution is to quickly and seriously implement an alternative energy strategy that will reduce the reliance on the current fuel source and begin to diversify options available to the territory for energy.
We all know what the options are – non-fossil fuels, solar and wind generated energy, recycling, more efficient vehicles – and everyone, from governmental bodies to the individual consumer, must face the reality that certain changes must be made in the short and long term to manage this issue.
But for the immediate and future well being of the residents who call the Virgin Islands home, there has to be another answer than the continual increase to our residents in the cost of the basic necessities of life. For the health and stabilization of the local economy, business owners must have some relief as well, because those businesses form the foundation for residents and tourists alike and cannot be allowed to crumble under the weight of this dilemma.
Let’s light a fire under those who can make these changes happen. But let’s not burn out those who live and work here in the process.
Michael Springer
President Crucians In Focus
A close look at the Legislature’s appropriations reveals millions of dollars being disbursed annually to a multitude of organizations for functions that range from purses for horse racing to baton twirling competitions. (www.legvi.org go to Act 6969) Would it not be high time for our Senators and Gov. to curtail these “freebs” and channel the funds into building a new WAPA? Furthermore, WAPA is in serious need of an audit. It is very obvious that fuel is not the only issue at WAPA. A closer look needs to be taken at the travel vices of WAPA officials including the board. There is also a dire need for an audit of the monies being paid to WAPA by the local consumers. Lastly, the Government needs to pay its outstanding bills and continue paying the bills! Where is the promised accountability!
What we need to realize is that it is not only our electricity and water bills that will be affected. This increase is once again going to increase practically every aspect of our lives. There is a down-line effect. The only thing that is not being raised to accommodate these increasing costs are salaries for classified Government employees. It is no secret that our leaders saw it fit to increase their unclassified employees salaries; raises that cannot compare to the meager raises given to unionized employees.
Poverty looms for many. Our leaders need to take the bull by the horns and act now.
I think the issue is one of accountability, I heard thru one of the senate hearings when Bruno Vega was still the Director of WAPA, that the legislature had given each Government Department funds to cover their WAPA bills, now what the different agencies did with that money and why they did not pay their bills needs to be investigated. I think all Government Agencies need to be audited if they have not and someone needs to find out where the money directed to pay WAPA is going.
That’s what this joke of a 27th Legislature is supposed to be doing. What happened to Mr. “I Want Finance” Nelson? Just the usual hot air with no substance. He heads the 2nd most powerful committee in the Legislature yet I can’t find anything “Positive” about his chairmanship of Finance. I learn more from Senator James’ ramblings and political posturing than Senator “I Coming For Finance” Nelson.
Despite the crisis we face with WAPA, they have been unable to sit down like civilized people to come up with a plan. All 15 of them need to go!
why are you shocked, our senate is just “more of the same” honestly they all need to go away for good, it was kind of funny, that stupid woman with the long fingernails came in for lunch one day and the waitress threw her out and basically told her she was worthless and her son should not be selling drugs at Central