GOVERNMENT OF THE VIRGIN ISLANDS

OF THE UNITED STATES



Public Services Commission



In re

The Virgin Islands Water and Power Authority ) Docket No 678

Petition for Base Rate Case for the Electric Department ) Order No. 23/2020

)

)



ORDER



WHEREAS, on May 21, 2019, the Virgin Islands Water and Power Authority

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

Commission (hereinafter “the Commission” or “PSC’”) for Electric System Rate Relief; and



WHEREAS, on June 12, 2019, the Commission met in regular session and voted that

WAPA’s Petition Electric System Rate Relief be suspended until such time as WAPA has

complied with the previous PSC Orders; and



WHEREAS, on August 5, 2019 the Authority submitted a new filing with a substantially

lower and different rate request; and



WHEREAS, the Commission appointed Kye Walker, Esq., to act as hearing examiner in

this matter; and



WHEREAS, Hearing Examiner Walker, with the PSC Staff and WAPA, conducted

public hearings on each of the three major islands, and conducted three days of evidentiary

hearings in October 2019; and



WHEREAS, Hearing Examiner Walker submitted her report and recommendations on

December 11, 2019; and



WHEREAS, the Commission had scheduled a meeting on December 12, 2019, at which

time the Commission heard from the Hearing Examiner, WAPA, the PSC Staff and took

comments from the public; and



WHEREAS, the Commission continued this matter at that time; and



WHEREAS, the Commission held a meeting on January 9, 2020 to again address this

matter; and



WHEREAS, the Commission again heard from the Water and Power Authority and PSC

staff; and



WHEREAS, after discussion, a motion was made to adopt from the Hearing Examiner’s

report:

PSC Order No. 23/2020

In re Petition for Base Rate Case for the Electric Department

Page 2



For the reasons stated above, the Hearing Examiner recommends the Commission

approve the Authority’s most recently revised request for a base rate increase of

$29,733,687.00, which increase would be tied to a corresponding reduction in the

LEAC and having a zero impact on the current overall rates charged to

consumers. The recommended increase to the base rate allows for the

reinstatement of the OPEB surcharge at $0.002166 per kWh and the elimination

of the line loss, maintenance, and leased generation surcharges.



WHEREAS, an amendment to the motion was made and approved to require Rate Flow

design be included within 180 days and that approval of base rates does not grant approval to any

amounts for the Vitol contracts not previously approved;



NOW THEREFORE, the Commission finds and ORDERS that:



1. The Authority’s most recently revised request for a base rate increase of $29,733,687.00

is approved, which increase is tied to a corresponding reduction in the LEAC (previously

approved in Order No. 15/2020) and having a zero impact on the current overall rates

charged to consumers. The Authority shall file the proposed tariffs with the Commission

no less than 30 days before billing customers the new tariffs.



The OPEB surcharge at $0.002166 per kWh is hereby reauthorized.



3. The line loss, maintenance, and leased generation surcharges (in the amounts of

$0.002 196, $0.024863, and $0.030842 per kilowatt/hour, respectively) are hereby

eliminated.



4. That PSC Staff shall return to the Commission a proposed Rate Flow design within 180

days.



5. The base rate proceedings completed no further investigation of, and may not be used in

any manner, to imply new approvals regarding the previously approved amount of Vitol

infrastructure charges which may be recovered by the utility. The amount of Vitol

infrastructure charges authorized for recovery in base rates remains $87 million, pending

further investigation.



-



So Ordered.

For the Commission,

4

Date: January 30, 2020 iB



‘David W. Hugi Coe