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Charlotte Amalie
Wednesday, May 25, 2022
HomeNewsArchivesHIGH OIL PRICES MEAN HIGHER WAPA BILLS

HIGH OIL PRICES MEAN HIGHER WAPA BILLS

The high cost of oil may soon show up on the bills of V.I. Water and Power Autority customers. According to a WAPA release, the "levelized energy adjustment clause" on customers’ bills will likely go up by $14 in April, because of recent increases in the cost of oil.
The adjustment clause, which sets the level of fuel costs for six months, was approved by the V.I. Public Services Commission in 1981 to stabilize 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 under-payment of actual fuel costs."
The utility applied for a LEAC increase with the PSC in January but it hasn’t yet been applied to bills. For the past year WAPA has not passed on increased fuel costs, according to the release. Because of the undercollecting, the utility said it has eaten almost $12 million.
"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."
And, starting next month, to the bills of WAPA customers. According to the utility, the net effect 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 adjustment will also show up on potable-water bills, in the form of a $6 increase for the average residential user.

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The high cost of oil may soon show up on the bills of V.I. Water and Power Autority customers. According to a WAPA release, the "levelized energy adjustment clause" on customers’ bills will likely go up by $14 in April, because of recent increases in the cost of oil.
The adjustment clause, which sets the level of fuel costs for six months, was approved by the V.I. Public Services Commission in 1981 to stabilize 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 under-payment of actual fuel costs."
The utility applied for a LEAC increase with the PSC in January but it hasn’t yet been applied to bills. For the past year WAPA has not passed on increased fuel costs, according to the release. Because of the undercollecting, the utility said it has eaten almost $12 million.
"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."
And, starting next month, to the bills of WAPA customers. According to the utility, the net effect 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 adjustment will also show up on potable-water bills, in the form of a $6 increase for the average residential user.