81.4 F
Cruz Bay
Thursday, March 28, 2024
HomeNewsArchivesGovernment Again Owes WAPA Millions

Government Again Owes WAPA Millions

Because the government and autonomous agencies again owe tens of millions of dollars in past due utility bills, the V.I. Water and Power Authority had to seek an advance on bond proceeds to buy fuel and is struggling with cash flow, Executive Director Hugo Hodge Jr. said Wednesday during budget hearings.

While the government and Legislature have approved bond financing to pay $12 million in past due utility bills for the territory’s hospitals and prison, "even when we receive this cash infusion, the authority’s operations will continue to struggle with the tremendous weight of these government receivables," Hodge said.

Hodge gave the Gov. Juan Luis Hospital as an example, saying the hospital “has not made a direct payment to the authority since about 2011.” Schneider Regional Medical Center is starting to owe more and more too, he said.

As of Aug. 31, the central government owed $17.5 million for electrical bills, up from $15.5 million this time last year. "The total owed for water and electrical services by the central government is $18.8 million, with streetlights accounting for $11.7 million of that, Hodge said. Add the hospitals to that and WAPA is owed $25.1 million, he said.

The utility’s switch from extremely expensive diesel fuel to liquid propane is continuing and is now expected to be completed by January, Hodge said. At that point, customer fuel costs will go down by 30 percent or so, he said.

Sen. Judi Buckley pressed Hodge on why the work was delayed, when Hodge had previously testified it should be complete in October of this year.

Hodge said there had been some changes as they proceeded, in some cases because permitting agencies recommended changes to their fuel storage and distribution plans.

While the authority does not receive any money from the General Fund for expenses, WAPA officials still come before the Senate each year to discuss their projected costs, revenues and plans.

For Fiscal Year 2015, Hodge said, WAPA anticipates total revenue of $317.2 million, with $227 million of that from the fuel surcharge on the bill. Wages, salaries and benefits are budgeted at $39 million. Fuel itself is projected to cost $207.3 million.

The water system is projected to earn $35.5 million, with $$9.4 million of that coming from the fuel surcharge.

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.

2 COMMENTS