PSC Approves Hike in Water LEAC Provided WAPA Complies With Regulatory Requirements

Virgin Islands residents with water service from WAPA may soon see an increase in their water bills.

That’s because the Public Services Commission provisionally approved a new Levelized Energy Adjustment Clause (LEAC) rate for water.

Currently set at $7.82 per 1,000 gallons (kGal), at Thursday’s PSC meeting, commission members approved the request of WAPA to raise the LEAC to $9.53 per kGal.

“The factors that in the past have resulted in a high cost continue,” said Larry Gowlick of Georgetown Consulting Group, which has been working with WAPA to rationalize rates and charges.

However, during discussion on the request from WAPA, it was discovered that the authority has not been meeting its legal obligations to file a quarterly report on the state of the territory’s water system. “I don't have an explanation as to why they are unable to make a quarterly filing,” said Attorney Boyd Sprehn, counsel for the PSC.

One of the factors under discussion was the shockingly high rate of water loss WAPA experiences from its water distribution system — 48 percent on St. Croix and 15 percent on St. Thomas, according to WAPA officials. Noel Hodge, the utility’s chief operating officer, said during the meeting that the Federal Emergency Management Agency has approved a $1 billion prudent replacement award in this regard, and that up to 95 percent of the water lines in St. Croix will ultimately be replaced as a means to mitigate water losses, which add up to approximately $3 million annually. “That’s really a game-changer,” said Mr. Hodge. “A once-in-a-lifetime opportunity to make a significant investment in infrastructure”. Theft, officials say, is also an issue.