Amidst Uncertain Fuel Costs, Generator Hangups, LEAC Stays the Same

The V.I. Water and Power Authority is not raising its electric LEAC or water LEAC through June 30 this year. However, there is concern about the current rate driving WAPA into further debt and whether that debt can be called a collectible asset.

In a report to the Public Services Commission Tuesday recommending the continued electric LEAC of 22 cents, Jim Madden of Georgetown Consultants said the rate was “substantially below” what WAPA needed to cover its fuel costs.

He also mentioned “deferred fuel costs.”

Commission Vice Chairman David Hughes objected to the discussion of deferred fuel. He said the $18 million referred to as “deferred fuel” might disappear when the PSC has the opportunity to examine WAPA’s audits of the last three years.