PSC Approves WAPA’s Request to Maintain LEAC Amid Cost Pressures

As WAPA’s debt grows and cost-saving energy projects remain delayed, the Public Services Commission agrees to freeze current electricity rates through December

Due to a “very depressed financial condition” and the “unavailability of generating plans” which were “expected to be online months ago and perhaps a year ago,” the Water and Power Authority has requested that the current Levelized Energy Adjustment Clause (LEAC) on electricity bills remain the same until at least the end of the year. This was from a Public Services Commission staff report presented by Jim Madden of Georgetown Consulting on Tuesday.

“The potential savings expected” from much-touted solar and wind generation projects “has not yet occurred, and there is no certainty to when it will actually occur,” Mr. Madden continued. While these projects lag, WAPA ratepayers are stuck paying more for energy than they would have if things had rolled out on schedule. Mr. Madden reminded commissioners that the four propane-burning Wärtsilä generators, which can operate at a lower cost than older, less efficient machines fueled by expensive diesel, have been on island for at least three years, and are only now moving through their commissioning stages. WAPA’s request to maintain the current LEAC indicates – at least in part – the utility’s “uncertainty of whether the new Wärtsilä units would be operational in the next quarter,” he asserted.‌