Feb. 8, 2009 — Any effort to come up with a comprehensive energy policy for the territory has to focus first on breaking the ice between the V.I. Water and Power Authority, V.I. Energy Office and Public Services Commission, representatives from the three agencies said during a weekend retreat on St. Thomas.
While the retreat only lasted a day, the discussion yielded a long list of clear-cut goals for incorporation into WAPA's revamped strategic plan. The disagreements and sporadic shouting matches that have littered PSC meetings in the past were traded in for some productive brainstorming, bonding over lunch and general sessions in which all stakeholders came to a consensus on what the utility needs to do to better its water and power production.
"WAPA's last strategic plan was written in 2001 with a five-year vision, and by 2006, while we did accomplish some things, parts of the picture had changed by that point," said WAPA spokeswoman Cassandra Dunn. "We did focus on alternative energy back then, but now we really have to speed that up based on what has happened — things like the increase in the price of fuel really did stop some of the plans, really did put them into the water. The whole idea of the retreat was to kind of focus in on the areas that are really going to be essential for our further development, with the eye toward renewing our strategic plan."
Reducing the territory's dependence on oil was at the top of the list, with retreat participants focusing on trying to find the most efficient mix of fossil fuel, renewable and alternative-energy sources.
"Saying that we'll provide the cleanest energy at the lowest cost, that's easy, but how we're going to get there is no silver bullet," said WAPA board member Gerald Groner. "It's going to be a combination of factors, and a combination of efforts. We need an initial mix that maximizes the environmental, minimizes the prices, and moves us closer to the goal we're trying to get to."
By 2025, 30 percent of WAPA's energy output will be renewable, the group decided. The utility will continue to supply the territory with water and power as long as it commits to the new 30-percent mandate and continues to look for independent power providers that could come in to help shoulder the load, participants said.
WAPA is in the process of wrapping up negotiations with four alternate-energy providers interested in setting up shop in the territory. (See "WAPA Winds Down Talks With Alternative Energy Providers.") An announcement on which providers made the cut will be made soon, Dunn said.
The diversification of energy resources should also come with more stringent regulations, WAPA officials said, speaking to the three senators attending the weekend workshop.
"Many of these entities want to sell power to the public and don't have to go through the PSC," said WAPA attorney Lorelei Farrington. "They lease the equipment to the customer and the customer then produces their own electric energy. The question here is whether they should be regulated by the PSC — and it's really a fairness issue to the ratepayer, because they can pick and choose who to sell power to, and because of that, the average ratepayer isn't going to be given the choice of having reduced prices. Anyone that sells energy in the territory should at least have the same scrutiny that WAPA does, and this is a challenge that's going to be forthcoming, and is something we have to face as a territory."
During the retreat, participants also discussed enhancing WAPA's public-education program, expanding the utility's water system (particularly on St. Croix, where proposed developments would require more storage capacity), and the construction of additional substations throughout the territory.
"I think that another important issue that was raised was putting more of a focus on our key accounts department," Dunn said. "This department focuses on WAPA's larger accounts, and we will be redefining that, and will put a lot more effort into serving our larger customers. We want to provide some better outreach in terms of helping them with energy initiatives and keeping up with the latest things that are happening in the energy industry so they can stay ahead of the game and make sure the utilities aren't the biggest thing they're concerned about."
Providing customers with better accessibility to WAPA's services was also a priority, including setting up kiosks in areas outside the main business office to make it easier for residents to pay their bills and get other types of information.
"There's a cooperation between the agencies that will help get us where we need to go," Dunn said. "We have a good relationship with the governor, through the Energy Office, and a good relationship now with the PSC. We just want to make it work — it's a new day for energy in the territory, and a new day for WAPA. It's very exciting."
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