June 13, 2008 — The governing board of the V.I. Water and Power Authority (WAPA) has scheduled an emergency meeting for Saturday morning to approve a resolution to increase its overdraft capabilities with FirstBank.
WAPA wants to increase its overdraft capabilities from $2.5 million to $5 million. The board will meet at 10 a.m. Saturday at the Sunny Isle Conference Room on St. Croix.
This is all predicated on the fact that WAPA is short of funds. WAPA can't collect on the Levelized Energy Adjustment Clause (LEAC) at the full amount that it needs to, according to Cassandra Dunn, the authority's corporate communications officer. WAPA collects at $93 a barrel and pays Hovensa $121 a barrel, Dunn said.
Also included is a resolution to increase WAPA's revolving line of credit. The current $2 million would increase to $20 million. The line of credit is with FirstBank and Banco Popular. The credit-line increase is to cover WAPA's day-to-day operations, Dunn said. Fuel is 80 percent of the budget and the remaining 20 percent is for the operating budget, she added.
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