With Hovensa, its usual supplier of fuel, preparing to stop selling to the V.I. Water and Power Authority at the end of June, the utility has issued bid requests for the two types of fuel oil it uses to generate the territory’s electricity.
WAPA needs No. 2 distillate fuel oil for its gas turbines, and the heavier No. 6 heating oil for its steam boilers, according to WAPA Executive Director Hugo Hodge Jr. The authority uses a total of about 200,000 barrels of fuel oil monthly and the cost of that fuel, billed to ratepayers separately under the Levelized Energy Adjustment Clause, or LEAC, forms the largest portion of customer’s monthly bills.
Bids are for a year of supply commencing July 1 with options to renew for one year and proposals are due by April 10, according to a statement from WAPA.
Hodge said in a statement there has been a great show of interest in the region from entities interested in meeting the utility’s need.
“We anticipate that it will be a very competitive process,” he said. “Our mission is to secure a quality fuel supply that will be appropriate for burning in our generators without requiring extraordinary maintenance to the generating stations and their associated equipment or causing extraordinary problems in our plant operations. The fuel must meet all local and federal environmental regulations.
“Most importantly, the authority is committed to accepting bids that will provide the most reliable supply at the lowest cost per kilowatt hour produced, and which will result in the most reasonable rates for our customers,” said Hodge.
Detailed bid documents can be reviewed on the authority’s website under “Business Opportunities.” Questions about supplying No. 6 residual fuel oil should be emailed to the Contract Administration Department at IB-01-12@viwapa.vi. Questions about supplying No. 2 distillate fuel oil should be emailed to IB-02-12@viwapa.vi. Potential bidders may also call 340-774-3552, extensions 2032 or 2038 for more information.
