WAPA CEO Promises Significant Savings in 12 Months When Solar is Implemented on St. Croix, But Won't Say How Much: 'I Haven't Done That Math'
The CEO of the V.I. Water and Power Authority said Governor Albert Bryan's promise to transform St. Croix into 100 percent solar, in a move aimed at reducing the cost of power for Virgin Islanders is coming to fruition, and that if all goes as planned, in 12 months the promise will become a reality and ratepayers will see significant savings.
2022-08-02 13:22:42 - VI News Staff
But pinning Andrew Smith down, the WAPA chief executive on providing a number relative to the savings that ratepayers would realize was near impossible, with Mr. Smith deciding not to provide a set amount because he hadn't done the math.
He said the authority is expecting to pay 10 cents per kilowatt hour from the company that is eventually chosen to create the solar farm on St. Croix, but that there are other factors that influence the final cost to consumers.
"There's a blend in there; we'll still have some fossil fuel on St. Thomas and so the Levelized Energy Adjustment Clause (LEAC) won't go to 10 cents — a portion of it will be a little more because it's still fossil, but blending in that 10 cents brings the rate way down," he said.
Pressed by this reporter for an estimate on savings, the CEO said, "I haven't done that math, and let me explain to you why. I haven't done that math yet because I'm so focused on 1), not running out of cash, and 2), executing on the steps. If we get the cheapest solar, we get the cheapest replacement efficient generation, all of those things will drop the LEAC down," he said.
Speaking of the LEAC specifically, it would drop from 22 cents per kilowatt hour to somewhere "in the high teens," the CEO said. The other expense that carries the total per kilowatt usage for residential customers to 41 cents, is the 18.6 cents Base Rate. This charge covers payroll, operations, vehicles and other expenses. The Base Rate will not be affected by the move to solar; only major, structural and operational changes at the authority would impact it, which Mr. Smith said is already happening.
"We've already taken steps to get that cost down," Mr. Smith said. He mentioned the purchase of Unit 27 on St. Thomas, which he said saves WAPA $8 million annually in lease expenses, hence reducing the Base Rate. He also spoke about the refinancing of a debt maturity that reduces costs further by $3.5 million annually. A U.S. Dept. of Interior grant eliminates another $700,000 for an employee development program that would have otherwise been paid for by the authority.