GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS



PUBLIC SERVICES COMMISSION



IN RE: PSC Docket No. 289



THE VIRGIN ISLANDS WATER AND Order No. 13/2015

POWER AUTHORITY’S LEVELIZED

ENERGY ADJUSTMENT CLAUSE



ORDER



WHEREAS, on August 15, 2014, the Virgin Islands Water and Power Authority’s

(hereinafter “WAPA” or “Authority”) filed a Petition with the Virgin Islands Public Services

Commission (hereinafter “PSC” or the “Commission”) for the Electric and Water Levelized

Energy Adjustment Clause (hereinafter “LEAC”) factors for the period of October 1, 2014 to

December 31, 2014; and



WHEREAS, on October 29, 2014, WAPA filed a Petition with the PSC seeking

reconsideration of PSC Order No. 9/2015; and



WHEREAS, on November 24, 2014, the Commission received a Report and

Recommendations from its technical consultant, Georgetown Consulting Group, Inc.; and



WHEREAS, on November 24, 2014, the Commission met in special session in the

Commission’s offices on both St. Thomas and St. Croix and heard from representatives for the

Authority and the Commission’s technical consultants; and



WHEREAS, the Commission found that the RFM component of the LEAC rate (i.e.,

$0.023/kWh) was adopted when the Commission concluded that it was cost effective and would

result in annual benefits to consumers in excess of thirty-five million dollars ($35,000,000.00),

and therefore found it was reasonable and prudent, to impose an additional component to the

LEAC rate:



1. Ifan expenditure of additional funds would result in greater fuel savings from improved

efficiency than the cost of the program; and



2. That the emergency generator was a key element of the short-term program to ensure that

power was stabilized on St. Thomas and St. John, and that sufficient capacity was

available to perform the necessary maintenance on other units; and