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August 11, 2008
GOVERNOR MEETS WITH WAPA MANAGEMENT TO DISCUSS PUBLIC UTILITY’S CASH FLOW CRUNCH Governor John P. deJongh, Jr. met Monday with Executive Director Hugo Hodge, Jr., Board Chairwoman Juanita Young as well as senior staff from the V.I. Water and Power Authority to discuss the current cash flow crisis at the public utility. As a result of WAPA’s inability to fully recover the increasing costs of fuel through the Levelized Energy Adjustment Clause, LEAC, WAPA is now facing an almost $40 million dollar debt to HOVENSA, the company it purchases fuel from to generate both electricity and potable water at its plants on St. Thomas and St. Croix. "We are mindful of the rising costs of fuel and the impact it is having on WAPA’s cash flow and by extension, on each of us, in terms of our monthly electricity bills," deJongh said at the conclusion of the meeting. "I am also mindful of the need to balance WAPA’s financial survival with the financial constraints we face as a community in terms of supporting our many critical needs." DeJongh said he will meet over the next few days with members of the government’s financial team to review all options available to provide WAPA with the required level of funding to maintain cash flow. "The Administration has begun to address the rising costs of energy in a holistic manner, from energy efficiency to reduction in energy consumption, but the financial standing of WAPA at the present time has my full attention," deJongh added. He assured the WAPA officials that the central government is prepared to take whatever action is necessary to sustain the operations of the V.I. Water and Power Authority. Also present at the meeting was Planning and Natural Resources Commissioner Robert Mathes, a member of the WAPA Governing Board. |
