77.5 F
Charlotte Amalie
Wednesday, January 20, 2021
Home News Archives WAPA Borrows to Pay What It Owed Hovensa

WAPA Borrows to Pay What It Owed Hovensa

June 15, 2004 – The Water and Power Authority met Monday's deadline imposed by Hovensa for the utility to pay the oil refinery $3.4 million in delinquent fuel costs.
Hovensa had threatened that if payment was not received by Monday, the delivery of fuel supplies to the utility would be cut off. (See "V.I. Debt Blamed for WAPA's Inability to Pay Hovensa".) However, WAPA owes the refinery another $500,000 that is due on Friday.
In an emergency meeting last Thursday, the WAPA board authorized its executive director, Alberto Bruno-Vega, to borrow up to $5.6 million on a line of credit from two local banks — Banco Popular and FirstBank — to pay Hovensa.
Bruno-Vega said on Tuesday that the authority has up to five years to repay the loan at a 4 percent interest rate. "This is an unfair burden placed on WAPA," he said.
The government's outstanding account receivables of some $15 million and the underbilling of consumers for fuel costs are the main reasons the utility was unable to meet its financial obligations, Bruno-Vega has said.
The WAPA governing board has formed a committee to deal with the government's account receivables, he said, and it is corresponding with the governor.
WAPA has asked Sen. Adlah Donastorg, who chairs the Senate Finance Committee, to have the Legislature appropriate $15 million to pay the government's water and power bills. "The current budget cannot be used to pay previous bills," Bruno-Vega said.
Bruno-Vega also has asked that utility payments be line-item components of the fiscal year 2005 budgets so the money cannot be used for any purposes.
And he has asked the Public Services Commission to authorize automatic monthly adjustments in WAPA's fuel surcharge based on changed in the market price for oil.
"This would allow us to recoup monthly from the customers depending on the fluctuations in the oil market," Bruno-Vega said. "I hope these actions we're taking with the cooperation of the government would help out our financial situation."

Back Talk

Share your reaction to this news with other Source readers. Please include headline, your name, and the city and state/country or island where you reside.

Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.

Print Friendly, PDF & Email
Advertising (skip)

Support the VI Source

Unlike many news organizations, we haven't put up a paywall - we want to keep our journalism as open as we can. Our sites are more popular than ever, but advertising revenues are falling - so you can see why we could use your help. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. If everybody who appreciates our reporting efforts were to help fund it for as little as $1, our future would be much more secure. Thanks in advance for your support!





Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
Load more
Print Friendly, PDF & Email