Title: Public Services Commission Approves Water Rate Increase Amidst Concerns over Water Line Loss
The Water and Power Authority (WAPA) faced scrutiny during a recent meeting with the Public Services Commission (PSC) over significant water line loss and approved rate increases for residents. Commissioner Andrew Rutnik highlighted that high-line loss has been an ongoing problem for decades. However, what was new at the meeting was the PSC’s approval of a water rate hike.
According to the figures presented by WAPA, the authority is losing almost half the water it purchases from Seven Seas for St. Croix, with a similar issue observed in St. Thomas. Commissioner Raymond Williams raised concerns that Virgin Islanders were being forced to pay for water produced by Seven Seas, which essentially goes directly into the islands’ aquifer.
The approved rate hike, which is contingent on WAPA filing certain reports, will see the Levelized Energy Adjustment Clause (LEAC) for 1,000 gallons of water increase from $7.82 to $9.53. The implementation date is yet to be determined but may be as early as next month.
Commissioner Pedro Williams emphasized the importance of WAPA complying with the law passed in 2021, which requires them to file quarterly reports. He expressed frustration, stating, The problem in the Virgin Islands is that people don’t want to obey the law.
It’s not just the PSC and commissioners raising concerns about WAPA’s compliance with reporting requirements. Senator Kenneth Gittens recently mentioned that WAPA has failed to fulfill the legal obligation of submitting monthly reports on their efforts to recoup debt from Vitol.
During the meeting, Commissioner David Hughes questioned the substantial nature of the requested rate hike. In response, Jacob Lewis, WAPA’s chief financial officer, explained that the increase was largely influenced by WAPA’s contract with Seven Seas Water Corporation. The price WAPA pays for drinking water production from seawater is tied to the Consumer Price Index, which has been affected by inflation in recent years. WAPA is currently discussing a contract renewal with Seven Seas, as the existing agreement is set to expire in 2026.
WAPA officials shared some positive news, revealing that the Authority had received preliminary approval from FEMA for a program that could potentially resolve the water loss issues on St. Croix. If approved, the program would allocate around a billion dollars to replace most of the water storage and distribution systems on the island. WAPA is also seeking FEMA approval for a similar project on St. Thomas.
Commissioner Rutnik expressed skepticism about the impact of such projects, suggesting it could take a decade or two before their effects are fully realized. He inquired about current efforts to mitigate water losses, which cost the Authority approximately $3 million annually. WAPA confirmed that steps were being taken to address the issue, considering both leaks and theft as contributing factors to the losses.
Water line loss has been a longstanding challenge for both WAPA’s electrical and water departments, with a 2004 Inspector General’s report specifically highlighting instances of theft.
The PSC postponed discussions regarding new ferry rates until their next meeting.
In conclusion, the PSC’s approval of the water rate hike has raised concerns about the significant water line loss faced by the Water and Power Authority. The approval is conditional on the submission of specific reports by WAPA. The issue of non-compliance with reporting requirements has been a point of contention, with both PSC commissioners and senior officials expressing frustration. While efforts are being made to mitigate water losses, there is skepticism about their long-term effectiveness. However, WAPA received positive news with preliminary approval from FEMA for a program that could potentially address the water loss problems on St. Croix. Discussions with the federal agency are also taking place for a similar initiative on St. Thomas. As WAPA grapples with these challenges, the focus remains on providing effective solutions and ensuring compliance with legal obligations to benefit the Virgin Islands’ residents.
