Governor Bryan and WAPA Urge PSC to Reconsider Fuel Charge Reduction
Governor Bryan and WAPA Urge PSC to Reconsider Fuel Charge Reduction
The Public Services Commission (PSC) recently voted to reduce the Virgin Islands Water and Power Authority’s (WAPA) fuel charge, known as the LEAC, from over 22¢ to 17¢ per kilowatt-hour. This reduction, set to take effect at the start of next month, promises financial relief for residents. However, concerns have been raised about the potential long-term consequences of this decision.
Governor Albert Bryan Jr. and WAPA’s CEO Karl Knight have expressed serious reservations about the move, warning that it could jeopardize WAPA’s financial recovery. According to Knight, the rate cut would create a $30 million deficit in WAPA’s fuel fund, leaving the utility unable to pay vendors, purchase fuel, or sustain its recovery efforts. These efforts include bringing new solar energy projects online, paying down debt, and transitioning to a more sustainable infrastructure.
Governor Bryan has called on the PSC to reconsider their decision, emphasizing the importance of long-term stability over short-term relief. While the Governor cannot veto the PSC’s vote, he has joined WAPA in urging the commission to reverse the rate cut before it takes effect.
The situation presents a difficult choice for residents: accept immediate savings on their electricity bills or support measures aimed at ensuring the utility’s long-term viability. Many residents have endured high energy costs for years, and the promise of lower rates is understandably appealing. However, the risk of another financial crisis at WAPA looms large if the utility cannot sustain its recovery plan.
The PSC has 30 days from its June 10 vote to reconsider the decision. During this time, residents are encouraged to make their voices heard by writing, testifying, or commenting on the matter. The outcome of this decision will have significant implications for both the affordability and reliability of electricity in the Virgin Islands.
As the debate continues, the question remains: should the focus be on immediate relief or long-term stability? The choice lies in the hands of the PSC, but the voices of the community will undoubtedly play a crucial role in shaping the path forward.