June 13, 2009 — With relatively few questions asked at Friday’s hearing, the Public Services Commission members unanimously passed the Virgin Islands Water and Power Authority’s request for both electric and water base rate increases.
Hearing Examiner Kathleen Mackay presented her report to the commission, detailing the long settlement process and negotiations between WAPA, PSC staff, and Marriott Frenchman’s Reef Beach Resort.
Mackay recommended that the PSC grant the proposed increases, stating that the increases "will afford the Authority the opportunity to modernize its systems while at the same time reducing the impact of future increases in the price of oil as well as improving the efficiency and reliability of the electric and water systems."
The base water rate has not been increased since the 1990s and the last base electric rate increase was in 2004.
The base electric rate for residential customers will be raised from $0.071317 cents per kilowatt hour to $0.08326 cents per kilowatt hour. The average WAPA customer uses 500 kilowatt hours per month and the cost for 500 kilowatt hours, currently at $121.37 a month, will increase to $128.34.
The base electric rate for commercial customers will be raised from $0.102895 per kilowatt hour to $0.118259 per kilowatt hour. Commercial customers use an average of 1,200 kilowatt hours per month. The cost for 1,200 kilowatt hours, currently at $123.47 a month, will increase to $141.92 a month.
Water rates are currently $14.90 per gallon for the first 1,000 gallons and $16.90 per gallon for those over 1,000. With the increase granted by the PSC, the new rate for the first 1,000 gallons is $17.58 per gallon and usage over 1,000 gallons is $19.64 per gallon.
The new rate increases go into effect July 1.
The PSC held public hearings on all three islands, inviting community questions and input prior to the settlement being brought to vote.
Also on the agenda Friday was WAPA’s petition for an Levelized Energy Adjustment Clause (LEAC) increase for the third quarter beginning July 1 and ending Sept. 30.
Citing the recent return of rising oil prices and a decrease in sales, WAPA Executive Director Hugo Hodge Jr. petitioned the PSC for an increase of 12.8 percent in residential electric bills and 11.5 percent in commercial bills. The current rate of $0.159464 per kilowatt hour would increase to $0.190775 per kilowatt hour.
The LEAC factor for water is currently $5.33 and WAPA requested an increase to $5.60 but this was revised to $7.59 based on the investigative findings of Georgetown Consulting, the PSC’s consultants.
The proposed LEAC increases were voted on and passed by PSC members, with only Elsie V. Thomas-Trotman voting against the petition.
Sen. Patrick Simeon Sprauve, a non-voting commission member, expressed concern for the effect increased rates will have on the community given the fact that "so many people are already doing without."
According to Hodge, "Even with the base rate increases and the LEAC, the rate is still less than where we were in January."
PSC members in attendance were Joseph B. Boschulte, Donald "Ducks" Cole, Vernie C. David, M. Thomas Jackson, Sprauve, and Thomas-Trotman. Absent from the hearing was Siri Hamad.
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