In a tense session before the 35th Legislature, Karl Knight, CEO of the V.I. Water and Power Authority and Kevin McCurdy, Finance commissioner, faced tough scrutiny from senators as they pleaded for an extension of the state of emergency for the troubled utility. Despite the intense grilling and demands for greater transparency, lawmakers ultimately approved the 60-day extension, ensuring that WAPA would continue receiving critical support through November.
The state of emergency, first declared in April, has been essential to keeping the territory’s power grid operational amid WAPA’s severe financial distress. WAPA currently faces a $6 million monthly deficit, and officials warned that without the extension, delayed fuel payments could result in rolling blackouts across the Virgin Islands. “Without this extension, there is a real risk that we could see the return of rolling blackouts,” McCurdy cautioned.
However, senators were not quick to grant the extension without addressing long-standing frustrations over WAPA’s financial mismanagement and delayed reforms. Sen. Marvin Blyden challenged Knight on how vendor payments were being prioritized, while Sen. Alma Francis Heyliger expressed concern over WAPA’s failure to provide audited financial reports. “We haven’t seen an audit from WAPA since 2020,” Francis Heyliger stated. “How can we extend this state of emergency when we don’t even have a clear picture of WAPA’s financial health?”
Knight admitted that the audit process had been delayed but assured lawmakers that steps were being taken to reengage auditors, with plans to begin by December. Nevertheless, senators pressed for immediate accountability. Francis Heyliger and others insisted that WAPA must provide more detailed and transparent reports if it is expected to continue receiving government support.
“We cannot keep throwing money at WAPA without seeing results,” one senator remarked, summarizing the sentiment felt across the Legislature. McCurdy, in his defense, pointed to the $32.1 million disbursed to WAPA between April and September, emphasizing that the funds had been crucial to maintaining operations and preventing power outages. Yet, senators remained focused on how those funds were being managed and why WAPA’s operational challenges persisted.
Knight highlighted several key improvements, including the commissioning of new generating units at the Randolph Harley Power Plant and a reduction in fuel transportation costs from $0.73 per gallon to $0.59, saving approximately $900,000 per month. But the senators were not easily satisfied, with Blyden raising further questions about WAPA’s ability to manage its workforce and prepare for hurricane season. “What’s the plan to prevent outages when storms hit?” Blyden asked.
In response, Knight outlined WAPA’s plans to build a dedicated tree-trimming crew and secure outside contractors to enhance storm preparedness. Despite his efforts, senators remained concerned about WAPA’s ability to implement these plans effectively and in a timely manner.
After much debate, the Legislature ultimately voted to extend the state of emergency for another 60 days, recognizing that while WAPA’s situation remained dire, denying the extension could lead to catastrophic consequences for the territory’s power supply. However, lawmakers made it clear that their support came with conditions, including heightened scrutiny and expectations for real progress.
With the extension in place, WAPA now has until November to address its structural deficit, improve financial transparency, and continue its efforts toward operational stability.
Sens. Novelle E. Francis Jr., Marvin A. Blyden, Angel L. Bolques Jr., Samuel Carrión, Diane T. Capehart, Dwayne M. DeGraff, Ray Fonseca, Alma Francis Heyliger, Donna A. Frett-Gregory, Kenneth L. Gittens, Marise C. James, Javan E. James Sr., Franklin D. Johnson, and Carla J. Joseph attended Wednesday’s hearing.
