Economist Proposes WAPA Privatization Amid Financial Crisis; Clifford Joseph Opposes, Claims It’s a Nonprofit

An economist urged lawmakers to privatize WAPA, citing its $389 million debt and $6 million monthly deficit. Senator Clifford Joseph opposed, claiming WAPA operates as a nonprofit, despite its history of financial instability and gov't bailouts.

“WAPA is not run professionally, and the best alternative is to put it in private hands.” That was the suggestion of economist Mark Wenner during a special meeting of the Senate Committee of the Whole on Monday, intended to identify and discuss the contributors to the territory’s high cost of living.

Among Monday’s invited testifiers were the Economic Development Authority, St. Thomas/St. John Chamber of Commerce, Viya, the Housing Finance Authority, and the Department of Licensing and Consumer Affairs. Nearly every speaker cast blame on the Water and Power Authority for contributing to the territory’s abnormally high cost of living.

Households continue to grapple with bills they say are inflated and inaccurate, while businesses say the large monthly bills are making it harder to turn a profit. The authority’s well-documented, ongoing cash crisis is why Mr. Wenner says privatization, or at least a public-private-partnership, needs to happen sooner rather than later.