GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS



PUBLIC SERVICES COMMISSION



In Re The Virgin Islands Water and Power

Authority’s Levelized Fuel Adjustment



Charge Order No. 5/2012



PSC Docket No. 289



ORDER



WHEREAS, this matter is before the Virgin Islands Public Services Commission

(“Commission” or “PSC”) on remand from the Superior Court of the Virgin Islands

concerning the inclusion of interest on the Water and Power Authority's (“Authority”

or “WAPA”) $40,000,000 General Obligation Note (“Note”) and two lines of credit,

totaling $6,000,000 financed through the Levelized Energy Adjustment Charge; and



WHEREAS, the Commission has previously reviewed the $40M General

Obligation Note twice, first in 2008 and again in 2010; and



WHEREAS, at meetings in November and December 2010 the Commission



received testimony on the refinancing of the Note; and



WHEREAS, the Commission has reviewed the Authority’s October 27, 2010

petition and the testimony of the Authority’s then Chief Financial Officer, Nellon



Bowry, in support of the petition for refinancing of the Note; and



WHEREAS, the Commission received the report and testimony of its technical



consultants which supported the refinancing; and



WHEREAS, the Commission has previously encouraged the Authority to begin a

hedging program, as early as 2004; and