WAPA Faces $3 Million Fuel Shortfall, Seeks State of Emergency Extension and Government Support

With a $3 million fuel payment due and a persistent $6 million monthly deficit, WAPA has already received $32.1 million in government aid this year. Lawmakers express concerns over the lack of progress as it seeks an extension of the state of emergency

“The ability to keep the power on on any given day is a challenge for the Water and Power Authority. If you don't call it an emergency, I don't know what that is.” That was the response given by WAPA's chief executive officer Karl Knight as lawmakers pressed him on why the power-related state of emergency should be extended through November 19th, 2024.

Six months after the state of emergency was first instituted, Mr. Knight told members of the Committee on the Whole on Wednesday that WAPA remains in a “fiscal crisis.” Monthly deficits currently average $6 million despite the authority’s reports that steps are being taken to reduce costs and bolster revenues. Whereas WAPA requires approximately $33 million for monthly operations, Mr. Knight told lawmakers, "I bring in about $27 million a month in revenues from our customers.”

Illustrating the severity of the situation, WAPA Chief Financial Officer Lorraine Kelly told lawmakers that the authority could not afford a $3 million fuel payment that was due on Tuesday. “On Friday, we need to pay another $3 million for fuel. We do not have the funds to pay it.”