Financial Struggles at WAPA Trigger Power Outages in STT-STJ Amid Diesel Shortage

Deepening crisis on St. Thomas and St. John highlights urgent need for solutions. Governor Bryan, who declared the WAPA State of Emergency, prepares to board a cruise which he says will benefit the territory's tourism growth

On Wednesday evening, power outages roiled St. Thomas and St. John. At 10:36 p.m. the Water and Power Authority issued the following notice: “Due to financial challenges, there is low diesel fuel inventory. Unit 23 is experiencing fluctuations in fuel pressures affecting the overall performance of the unit resulting in leaks on the fuel system.”

Fuel system leakages are just the latest consequence of WAPA’s ongoing liquidity crisis, an issue that has plagued the utility for years. In 2021, the Consortium reported that rising fuel prices were having a detrimental effect on the WAPA's cash flow, something that was not mitigated by the Public Services Commission approving an increase in the Levelized Energy Adjustment Clause from approximately 15 cents per kilowatt hour to 17 cents per kilowatt hour in that year. The LEAC was later raised again to 22 cents per kilowatt hour, but even this higher price has not been sufficient to keep up with cost of fuel needed to run WAPA’s generators, leading to what WAPA says is a growing hole in its finances of at least $18 million in deferred fuel costs.‌