WAPA subsidies end as utility improves efficiency with use of more renewable energy, new generators

ST. CROIX — The Virgin Islands government has stopped subsidizing the VI Water and Power Authority after providing significant financial support from federal and local funding sources to keep the cost of electricity from increasing, according to two executive branch officials.

The government was able to utilize $100 million in federal funds received through the American Rescue Plan Act to prevent WAPA rate increases by implementing the fuel subsidization program from March 2022 to June 2023, according to Government House. “During that time, the price of oil was skyrocketing,” Kevin Williams, chief of staff to Governor Albert Bryan Jr., said while discussing the subsidization program. “It was meant to keep the fuel costs stable so that WAPA wouldn’t have to pass those costs that they’ve traditionally done on to the consumers.”

The executive branch also spent local funds to subsidize WAPA, making its final subsidy payment last month before the Senate ended the state of energy emergency the governor declared on April 22, 2024. The financial assistance the government provided to WAPA in the form of monthly subsidies allowed the Authority to complete its anticipated project on St. Thomas to bring online four fuel-efficient generators manufactured by the Finnish company Wärtsilä that can function on diesel or propane.