GOVERNMENT OF THE VIRGIN ISLANDS



OF THE

UNITED STATES



PUBLIC SERVICES COMMISSION



IN RE Docket No. 289

Order No. 16/2012

LEVELIZED ENERGY ADJUSTMENT CLAUSE

OF THE VIRGIN ISLANDS WATER AND POWER



AUTHORITY



Nee Neue See Soe Nee” ee”



ORDER



WHEREAS, on February 15, 2012, the Virgin Islands Water and Power Authority

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

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

Energy Adjustment clause (“LEAC”) electric factor from $0.347618 per kWh to $0.345452 per

KWh and decrease the LEAC water factor from $15.74 per kGal to $14.23 per kGal; and



WHEREAS, on March 30, 2012, the Commission met in Regular Session at the Port

Authority Conference Room located at the Henry Rohlsen Airport on St. Croix, United States

Virgin Islands; and



WHEREAS, On March 28, 2012, the Commission received the April LEAC Report of its

technical consultants, Georgetown Consulting Group, LLC.; and



WHEREAS, the Commission adopted the recommendations of its Technical Consultants;

and



WHEREAS, the Commission, based on the Technical Consultant’s report, made the

following findings:



1. That the assumptions of fuel pricing, sales of water and electricity, and the fuel

consumption used in the Technical Consultant’s report are reasonable and appropriate for

the upcoming LEAC period; and



2. The amount of fuel consumed by WAPA in the production of electricity and water

remains at a high level, and the Commission is troubled by these inefficiencies. The

Commission is further troubled by the impact of unpaid Government accounts on

WAPA’s deferred maintenance; and