Aug. 11, 2008 — Though no solution has been announced as yet, the government is going to do whatever it takes to help the V.I. Water and Power Authority through its current financial crisis, Gov. John deJongh Jr. said Monday after meeting with utility officials.
Over the weekend, WAPA representatives met in emergency executive session to discuss a letter sent by two of Hovensa's top executives outlining new payment terms between the two companies. Starting Friday, WAPA will have to pay for fuel deliveries two days in advance, and will continue to accrue interest on money it already owes to Hovensa until the debt is paid off in full, the letter said.
The authority currently owes Hovensa nearly $40 million — of which almost $12 million is past due.
WAPA officials — including the utility's governing board chairman Juanita Young, Executive Director Hugo Hodge Jr. and Chief Financial Officer Nellon Bowry — met with deJongh Monday to discuss the situation.
"We are mindful of the rising costs of fuel and the impact it is having on WAPA's cash flow and … on each of us, in terms of our monthly electricity bills," deJongh said in the statement, issued after the meeting finished. "I am also mindful of the need to balance WAPA's financial survival with the financial constraints we face as a community in terms of supporting our many critical needs."
In an attempt to come up with a solution to WAPA's financial woes, the governor said he would be meeting over the next few days with members of his financial team to "review all options available to provide WAPA with the required level of funding needed to maintain cash flow."
"The financial standing of WAPA at the present time has my full attention," deJongh added, saying that the government is "prepared to take whatever action is necessary to sustain" WAPA's operations.
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