GOVERNMENT OF THE VIRGIN ISLANDS

OF THE UNITED STATES



Public Services Commission



Inre



Docket No. 651

Order No. 58/2017



The Virgin Islands Water & Power Authority _)

Petition for Permanent Electric System )

Base Rate Relief (Docket 651) )

)

)



WHEREAS. in 2013, the Public Services Commission (hereinafter “Commission” or

“PSC™) concluded Dockets 611 and 612, which provided new base rates for the Water and Power

Authority’s (hereinafier “Authority” or “WAPA”) electric and water systems, respectively; and



WHEREAS, no later than 2014, the Commission began expressing its concern with the

accuracy and propricty of WAPA’s base rates and its Levelized Energy Adjustment Charge

(hereinafter “LEAC™) rate: and



WHEREAS. the Commission desired to properly allocate expenses to base rates and

return the LEAC to a fuel only basis; and



WHEREAS. on December 1, 2015, WAPA made a base rate filing; and



WHEREAS, in its December 2015 filing WAPA requested a permanent base rate

increase of $18.24 million per year, which represented a base rate increase of 25.5%; and



WHEREAS, in February 2016 PSC Staff met with WAPA management to review the

December 2012 filing and WAPA concluded it should refile to address infirmities and concerns

that PSC Staff had identified; and



WHEREAS, on April 18, 2016, Commission Order No. 26/2016 transferred the costs of

the Rate Financing Mechanism (hereinafter “RFM”). including funds for the repair of Unit 23

and lease costs associated with Unit 25, from the LEAC to base rates: and



WHEREAS, on September 12, 2016, after conferences with Staff reviewing the June 6,

2017 filing, WAPA filed yet another revised permanent base rate increase request, that was

projected to increase annualized electric system revenues by approximately $41.7 million: and



WHEREAS, all delays and timeline impacts from the prior implementation of rates in

January 2014 rate increase to the September 2016 filing were in WAPA’s control: and