GOVERNMENT OF THE VIRGIN ISLANDS

OF THE

UNITED STATES



PUBLIC SERVICES COMMISSION



IN RE ) Docket No. 289

) Order No.02 /2012

LEVELIZED ENERGY ADJUSTMENT CLAUSE )

OF THE VIRGIN ISLANDS WATER AND POWER )

AUTHORIT} }

)



ORDER



WHEREAS, on September 2, 2011, the Virgin Islands Water and Power Authority

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

Commission (hereinafter, “PSC” of the “Commission”) seeking to decrease the Levelized

Energy Adjustment clause (“LEAC”) electric factor from $0.360676/kWh to $0.359866/k Wh for

the period of October 1, 2011 to December 31, 2011; and



WHEREAS, on September 21, 2011, the Authority submitted an amended petition to the

Commission seeking a further decrease in the electric LEAC factor to $0.352209/k Wh; and



WHEREAS, the Commission, through its staff and consultants, conducted a thorough

review, conducted discovery, held meetings with the executive management of the Authority

concerning the proposed water LEAC rate and submitted a report to the Commission on



September 27, 2011; and



WHEREAS, the Commission Staff and the Authority Management identified the current

maintenance status of the Authority’s generation equipment as a critical factor in the current

inefficiency and unreliability of the Authority’s electric service and increased cost of operations;



and



WHEREAS, the Commission Staff and the Authority Management negotiated and

submitted a Temporary Emergency Generation, Maintenance Management and Efficiency

Improvement Stipulation to improve the both efficiency and reliability, which should result in a



net reduction in costs within the next two quarters; and