WAPA Questioned on Outages, Aging Equipment and Debt in FY 2027 Budget Hearing
The Virgin Islands Water and Power Authority presented a $316.7 million fiscal year 2027 operating budget Wednesday as senators questioned officials over recurring outages, aging equipment and the utility’s financial condition.
2026-08-13 17:49:12 - VI News Staff
WAPA Chief Executive Officer and Executive Director Karl Knight told the Senate Budget, Appropriations and Finance Committee that the budget supports about $310.8 million in projected expenditures, including $121.5 million for fuel, $63.5 million for personnel and $29.5 million in debt service.
Knight said fuel remains WAPA’s largest expense and the authority has under-recovered fuel costs for several years, meaning revenue collected through the fuel surcharge has not fully covered actual fuel purchases. He said utility rates increased about 9% between fiscal years 2019 and 2026, while liquefied petroleum gas prices increased 45% and diesel prices rose 75%.
“If there is a vulnerability in our expenditure forecast, it is the current volatility of that fuel market,” Knight said.