GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS



PUBLIC SERVICES COMMISSION



IN RE: PSC Docket No. 289

VIRGIN ISLANDS WATER AND POWER Order No. 39/2018

AUTHORITY’S LEVELIZED ENERGY

ADJUSTMENT CLAUSE



ORDER



WHEREAS, on April 3, 2018, the Virgin Islands Water and Power Authority’s

(hereinafter “WAPA” or “Authority”), filed its Semi-Annual Petition (hereinafter “Petition”) for

the Electric and Water Levelized Energy Adjustment Clause (hereinafter “LEAC”) for the period

July 1 to December 31, 2018, to be applied to the bills issued on or after July 1, 2018; and



WHEREAS, in the Petition, WAPA stated that on May 5, 2017, Vitol suspended delivery

of Liquid Propane Gas (hereinafter “‘propane”) to the its power plants in the St. Thomas/St. John

and St. Croix districts; and



WHEREAS, the suspension of propane deliveries to the Authority forced it to revert to

costlier No. 2 fuel oil for electricity generation; and



WHEREAS, the Authority began utilizing propane in August 2017 in its power plant on

St. Croix, and resumed use of propose post-hurricanes in January 2018; and



WHEREAS, the Authority stated that its power plant on St. Thomas was scheduled to

come online using propane in April 2018; and



WHEREAS, the Authority’s power plant on St. Thomas has not come online using

propane; and



WHEREAS, on June 29, 2018, the Commission held a Special Meeting at its office located

at No. 1003 Estate Ross, Suite 4, Barbel Plaza on the island of St. Thomas, United Virgin Islands

and via teleconference at the Port Authority conference room located at the Henry E. Rohlsen

Airport on the island of St. Croix, United Virgin Islands: and



WHEREAS, at the meeting, the PSC expressed its dissatisfaction with the inclusion of

No. 2 fuel oil in WAPA’s petition and the continued delays in bringing more efficient propane

gas-burning units online; and