GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS



PUBLIC SERVICES COMMISSION



IN RE: PSC Docket No. 289

THE VIRGIN ISLANDS WATER AND Order No. 9/2015

POWER AUTHORITY’S  LEVELIZED

ENERGY ADJUSTMENT CLAUSE



ORDER



WHEREAS, on August 15, 2014, the Virgin Islands Water and Power Authority’s

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

Commission (hereinafter “PSC” or the “Commission”) for the Electric and Water Levelized

Energy Adjustment Clause (hereinafter “LEAC”) factors for the period of October 1, 2014 to

December 31, 2014; and



WHEREAS, on September 25, 2014, the Commission received a Report and

Recommendations from its technical consultants, Georgetown Consulting Group, Inc.; and



WHEREAS, on September 29, 2014 , the Commission met in regular session in the

Commission’s offices on both St. Thomas and St. Croix and heard from representatives for the

Authority and the Commission’s technical consultants; and



WHEREAS, the Commission has reviewed the Authority’s Petition for new Electric

LEAC rates for the period of October 1, 2014 to December 31, 2014, the supporting information,

and the report of the Commission’s technical consultants; and



WHEREAS, the Commission finds that the RFM component of the LEAC rate (i.e.,

$0.023/kWh) was adopted when the Commission concluded that it was cost effective and would

result in annual benefits to consumers in excess of $35 million, and therefore found it was

reasonable and prudent, to impose an additional component to the LEAC rate:



1. Ifan expenditure of additional funds would result in greater fuel savings from improved

efficiency than the cost of the program; and



2. That the emergency generator was a key element of the short-term program to ensure that

power was stabilized on St. Thomas and St. John, and that sufficient capacity was

available to perform the necessary maintenance on other units; and