Starting in April, the high cost of oil may show up on the bills of V.I. Water and Power Autority customers to the tune of $14 a month.
According to a WAPA release, the Levelized Energy Adjustment Clause on customers’ bills will go up because of recent spikes in the cost of oil.
The LEAC, which sets the level of fuel costs for six months, was approved by the V.I. Public Services Commission in 1981 to stabilize the monthly changes in the cost of fuel passed on to WAPA customers.
"In general," the WAPA release states, "the LEAC is based on projected fuel costs and is to be adjusted for any prior period for the over- or underpayment of actual fuel costs."
The utility applied for a LEAC increase with the PSC in January but it hasn’t been applied to customers’ bills. For the past year WAPA hasn’t passed on the increased fuel cost to customers. Because of the under-collecting the utility has eaten almost $12 million, according to the release.
"The increase in fuel costs as a result of rising oil prices is not unique to WAPA or the Virgin Islands," the release states. "This is a global problem which can be seen in the almost $2 per gallon price at the gas pumps in the Virgin Islands and in the surcharges for fuel that have recently been added to the cost of airfares."
According to WAPA, the net affect of the increased fuel charge will be about $14 for residential customers who use an average of 474 kilowatt hours per month.
Commercial customers using an average of 1,283 kilowatt hours a month should see a $39 increase, while large power consumers using 23,908 kilowatt hours per month will see a $719 hike.
The increased LEAC will also show up on potable water bills in the form of a $6 increase for the average residential user.
