Because of rising fuel costs, Water And Power Authority residential customers will see an increase averaging about $14 per month in their electricity bills beginning in April.
And because of the increased fuel surcharge that will cause the increase, they will also see an average hike of $6 a month in their potable water bills.
According to a WAPA release, the Levelized Energy Adjustment Clause on customers’ bills will likely go up because of recent increases in the cost of oil. The clause, which sets the fuel cost level for six months at a time, has appeared on bills since it was approved by the 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 level "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 to the PSC for a level increase in January. For the past year, the release says, WAPA hasn’t passed increased fuel costs on to customers, and as a result has absorbed almost $12 million in losses.
"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 the utility, the increased fuel charge will mean an average increase of about $14 a month for residential electricity customers, based on average use of 474 kilowatt hours of electricity per month.
For commercial electricity customers, the release says, the average increase will be about $39 a month. Large power consumers could see an average increase of $719.
