WAPA Confronts Financial Crisis With Strategic Moves and Federal Support, ‘Achievable,’ Says Knight

WAPA needs at least $375 million over the next five years to stay operational and address its mounting debt. A new report from Ernst & Young (EY) lays out the full extent of the utility’s financial challenges — and the tough decisions ahea

Despite the daunting numbers, WAPA CEO and Executive Director Karl Knight remains optimistic. “I think that is achievable,” Knight said in an interview with the Source, emphasizing the need for strategic financial planning. “This is not a deficit we have to overcome tomorrow, but it is something that we have to put thought into.”

Knight acknowledged that while there were no surprises in the EY report, it serves as an important consolidation of financial information. “There’s a sense that this is all the information compiled in one place where we can look at it. This is what the Senate asked for — an assessment by a turnaround management company. It provides a fresh set of eyes and a third-party perspective,” he said.

The report underscores that WAPA’s financial position is unsustainable under current conditions, with projected cash losses of $170 million, $87 million in past-due vendor bills, $27 million in deferred maintenance, and $88 million in outstanding debt by 2030. Moreover, additional risks — such as fluctuating fuel costs and system vulnerabilities — could push the total funding need to $498 million.