{"id":39821,"date":"2016-05-24T21:38:19","date_gmt":"2016-05-24T21:38:19","guid":{"rendered":"https:\/\/viconsortium.com\/?p=39821"},"modified":"2016-05-24T22:54:07","modified_gmt":"2016-05-24T22:54:07","slug":"st-croix-chamber-of-commerce-expresses-dismay-at-w-a-p-a-s-decision-to-increase-electric-rates","status":"publish","type":"post","link":"http:\/\/wp.viconsortium.com\/?p=39821","title":{"rendered":"St. Croix Chamber Of Commerce Expresses Dismay At W.A.P.A.’s Decision To Increase Electric Rates"},"content":{"rendered":"

ST. CROIX — The St. Croix Chamber of Commerce said on Tuesday it is taking immediate action to counteract the potential negative impact on St. Croix businesses stemming from a recent announcement by the the Virgin Islands Water and Power Authority regarding action taken at an emergency board meeting, where members voted to raise the electric utility rate<\/a><\/span>. The board’s decision will now face the Public Services \u00a0Commission.<\/p>\n

\u201cOur charter mission is to be one of the guardians of our community and also strong advocates for our membership,\u201d said Kimberly McCollum, Chamber president. “Issues such as rising utility rates, depleting monies from statutory funds to meet general operating expenses, and diminishing options for insurance coverage for small businesses are critical areas that the Chamber will speak out firmly about.”<\/p>\n

On Monday, Chamber representatives met with W.A.P.A. officials to express dismay at the utility\u2019s announcement last week that it would petition the P.S.C. for a base rate increase effective July 1. \u201cJust as we were becoming comfortable with W.A.P.A.\u2019s promise to establish reduced rates, we were all caught off guard by the announcement that W.A.P.A. will ask the P.S.C. for an increase of over 9 percent in order to maintain its bond rating,\u201d Ms. McCollum said.<\/p>\n

Present at the meeting was W.A.P.A. Interim Executive Director and Chief Financial Officer Julio Rhymer, W.A.P.A. Board Chairman Attorney Gerald Groner, Senate President Neville James, and Senate Majority Leader and Chair of the Energy and Environmental Protection Committee Sammuel Sanes.<\/p>\n

The Chamber sought to better understand the government\u2019s debt to the utility and the impact of losing its credit rating, while maintaining the focus on the concerns of residents and businesses over the proposed increase. According to John Lewis, chair of the Chamber\u2019s Government Relations Committee, all parties left with a much greater appreciation for all sides and a renewed effort to minimize any necessary increases, according to the release.<\/p>\n

The Chamber will also request a meeting with P.S.C. Chairman Johann Clendenin to further discuss the issue and reiterate its position that any and all rate increases will be burdensome on the community. These discussions, coupled with the support already given by Governor Kenneth Mapp will be instrumental in the efforts to reduce the impact the original proposed rate increase would inflict on the ratepayers, Ms. McCollum stated. Representing the Chamber were Ms. McCollum, Lewis and Vice President Edgar Bengoa.<\/p>\n

In an emergency meeting Thursday, members of W.A.P.A.’s governing board voted to file an electric rate increase with the P.S.C. that would amount to, on average, $13 monthly.<\/p>\n

Mr. Rhymer\u00a0told board members that the emergency filing seeks to improve W.A.P.A.\u2019s financial stability and avoid further credit rating agency downgrades while allowing the utility to become current with some of its outstanding payables. But the increase gives no end date, and would depend on W.A.P.A. having 45 days of cash on hand.<\/p>\n

Last\u00a0month<\/a><\/span>, the Legislature approved some $8 million to W.A.P.A. \u00a0\u2014\u00a0secured by the government from litigation against\u00a0Buchanan Ingersoll and Rooney<\/a><\/span>, PC, et al \u2014 with Governor Kenneth Mapp stating that the monies would help\u00a0 ensure, among other things, that W.A.P.A.\u2019s bond rating did not drop any further than it already has.<\/p>\n

\u201cWe need to have 45 days of cash on hand, approximately $34 million, to avoid a further downgrade of our ratings and to pay our outstanding bills. The industry norm is to have 85 days of cash on hand and we are nowhere near that level at this point. We are at a place where we simply cannot await the outcome of pending base rate case to stabilize our finances,\u201d Mr. Rhymer said.<\/p>\n

The interim C.E.O. blamed government agencies, especially the territory\u2019s hospitals, for the emergency increase. \u201cThe hospitals just don\u2019t pay,\u201d Mr. Rhymer said. Combined, the Government of the Virgin Island owes W.A.P.A. around $31 million.<\/p>\n

Mr. Rhymer contended that\u00a0rating downgrades would have detrimental effects on W.A.P.A., such as its relationships with fuel and supply vendors and with ongoing capital projects such as the propane conversion that is continuing in both districts.<\/p>\n

And he\u00a0explained that the emergency base rate relief will translate into a 2.687 cents increase per kilowatt hour to W.A.P.A.\u2019s customers, both residential and commercial. The increase will represent a $13 per month hike on the average residential electric bill.<\/p>\n

\u201cAs we look back to a year ago, electric rates have dropped significantly, approximately $115 per month on the average residential bill assuming usage of 500 kilowatt hours per month. When this proposed increase is factored into the present cost of electricity, our rates will still be some 20 cents per kilowatt hour less than they were one year ago,\u201d Mr. Rhymer said. \u00a0He added that the increase, assuming P.S.C. approval, would take effect on July 1 and remain in effect until the 45 days of cash on hand is achieved, which Mr. Rhymer estimated would equate to $34 million in two years. At that point, the increased rate would be lowered to a level to be determined by both W.A.P.A. and the P.S.C. as the utility continues the effort toward building a total of 85 days of cash on hand to satisfy the credit rating agencies.<\/p>\n

The board\u2019s approval of the petition was unanimous.<\/p>\n

Board members in attendance included Chairman Gerald Groner, Esq., Vice Chair Juanita Young, Secretary Noel Loftus, Commissioners Devin Carrington and Gustav James, Director Marvin Pickering and Cheryl Boynes Jackson. Member Elizabeth Armstrong was excused.<\/p>\n

 <\/p>\n

Feature Image: A portion of W.A.P.A.’s Christiansted plant (Credit: Ernice Gilbert, VIC).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

ST. CROIX — The St. Croix Chamber of Commerce said on Tuesday it is taking immediate action to counteract the potential negative impact on St. Croix businesses stemming from a recent announcement by the the Virgin Islands Water and Power Authority regarding action taken at an emergency board meeting, where members voted to raise the […]<\/p>\n","protected":false},"author":3,"featured_media":39823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[228,3,11,854,2474,147],"tags":[4158,5130,71,1008],"yoast_head":"\nSt. Croix Chamber Of Commerce Expresses Dismay At W.A.P.A.'s Decision To Increase Electric Rates - V.I. 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