GOVERNMENT OF THE VIRGIN ISLANDS

OF THE UNITED STATES



Public Services Commission



Inre



Docket Nos. 651 and 289

Order No. 32 /2017



The Virgin Islands Water & Power Authority

Petition for Permanent Electric System

Base Rate Relief (Docket 651)



And



Levelized Energy Adjustment Charge

(Docket 289)



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ORDE



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WHEREAS. on December 1, 2015, the Virgin Islands Water and Power Authority

(hereinafter “WAPA” or “Authority”, filed two Petitions with the Virgin Islands Public Services

(hereinafter “Commission” or “PSC”) seeking permanent Electric and Water Systems base rate

relief effective on bills issued on or after July 1, 2016; and



WHEREAS. in there have been numerous proceedings and negotiations on the Electric

System, including updated filings in June 2016 and August 2016; and



WHEREAS, in November 2016 the PSC Staff and WAPA Management negotiated an

Interim Rate Agreement that both parties agreed to recommend to the Commission, which would

provide WAPA with an additional $14.5 million per year in base rate revenues, and



WHEREAS, at the Commission’s December 15, 2016 meeting consideration of the

Interim Rate Agreement was on the agenda but was continued to the January meeting; and



WHEREAS. at the Commission’s January 12, 2017 meeting the Commission approved

the Interim Rate Agreement which would permit implementation of increased annual rates of

$14.5 million on meeting the requirements contained in the Interim Rate Agreement on

February 1, 2017; and



WHEREAS, on January 13, 2017, WAPA filed three petitions for reconsideration,

including one for the reconsideration of Commission's Order No, 30/2017, and that Petition

specifically stated that WAPA was not bound by the obligations contained in the Interim Rate

Agreement that were to be implemented prior to February 1, 2017; and