During a lengthy meeting Monday night, the Public Services Commission approved a drop in electric and water Levelized Energy Adjustment Clause rates and heard arguments on a petition that could once again allow the V.I. Water and Power Authority to recoup its deferred fuel costs through the LEAC once its conversion to propane is complete.
In May, WAPA put in for a decrease in the electric LEAC, which would change the July to September rate from .4018 cents per kilowatt hour to .4005, bringing the average residential bill down from $210.36 to $209.83.
WAPA also petitioned for a decrease in the water LEAC, from $10.85 per thousand gallons to $9.12. WAPA representatives said Monday the authority has been using less fuel on its water side due to a more efficient reverse osmosis system and is able to pass those savings on to consumers.
It took less than two minutes Monday for the PSC to approve the petition for LEAC decreases, but commission members were tied up for at least 20 minutes on another WAPA petition that would allow the authority to recoup its deferred fuel balance either through the base rates or through the LEAC.
It was initially recommended by Georgetown Consulting Group, the PSC’s advisors on WAPA matters, that WAPA switch to recovering those costs through the base rate, but according to the authority’s attorney, Samuel Hall Jr., Georgetown recently changed its mind again and WAPA has been left dangling.
During the most recent base case hearing, it was recommended that the cost be factored into the LEAC, but since January, that has been opposed by Georgetown and never implemented, Hall added Monday.
“It has to be recovered some place,” Hall said. “We have have gone from LEAC to base rate to LEAC, and now we’re at the point where we ask you to reconsider. This is not a random cost, this is a legitimate cost and it is about $10.2 million a year to the authority.”
PSC attorney Boyd Sprehn countered that both sides are at odds over the figures, with Georgetown calculating a balance of approximately $6.9 million that is left to be recovered after a series of refinancings and bond issues.
Sprehn explained that the deferred fuel balance is what the authority pays for fuel in excess of what it had forecast to pay and, generally, the PSC has allowed WAPA to recoup the costs through the LEAC six to 12 months after it has accrued.
WAPA’s January to March 2014 filing anticipated $33 million in excess fuel costs, but Sprehn said that was attributed to a “price difference issue” instead of a fuel consumption issue. He also said that WAPA’s petition did not take into account how much of the deferred fuel balance had already been recovered through both the LEAC and base rates.
Hall said that Monday night was the first time WAPA had heard from the PSC on the issue and, going along with Hall’s recommendations, the PSC gave both sides some time to review the information and respond.
Hall said WAPA’s petition was also looking to recover approximately $6.7 million in deferred fuel costs and, if it goes through, WAPA would recoup the funds after it switches over to propane, which would lower the cost for the consumer.
The Old Propane Switcheroo…..
These naive and under-informed members of the 30th Legislature are so dull and so predictable. They are, in so many cases, blindly ruining so many people’s lives, in so many underhanded and deceitful ways, again and again.
There is however one issue that needs to be addressed honestly, directly, and without any political engagement. This needs to be a discussion WITH AND AMONG the People of the Virgin Islands. St. Croix and St. Thomas in particular.
———
Are you aware that with the un-vetted (no due diligence, again) blind approval of this senate, at the direction of this governor, Mr. Hugo Hodge of WAPA is building ten 350 thousand gallon (3 million gallons on each island) storage tanks of extremely combustible, highly explosive PROPANE right above Krum Bay with the only power plant on St Thomas, above the only water plant on St. Thomas, above large gasoline and other fuel gas storage tanks, overlooking the only airport on St. Thomas and the only cargo port, and cruise ship docks and retail locations, across from Water Island, and all surrounded by homes, offices, full of your family members??
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– Has anyone heard about the health and safety effects of Propane? Have they told you it is a silent odorless killer, that rolls down hill and kills every person along the way?
Has anyone been told about the highly volatile nature of Propane?
– Has anyone heard about the safety procedures that WAPA, the Fire Department, EMS, the Police and the Hospitals are preparing for, and putting in place??
– Have you heard how they will all come together with all of the necessary lifesaving, rescue and firefighting equipment, in the event of any emergency?
– Do you know if the airlines are aware of what is being built at the end of the runway, below flight paths? And they are all OK with this?
– Do you know if the cruise lines are aware of the building of 3 million gallon Propane storage tanks right over the hill from where they dock their ships and where they pass by? How about their insurance companies?
– Are the cruise lines and the insurance companies all good with this decision by Hugo Hodge, the Governor and the current bunch of senators? They find this project acceptable?
– Has our Port Authority been fully in the loop on this extremely dangerous adventure? Has Port Authority signed off on it?
– How about the US Army Corps of Engineers? Have they given permission to transport in open seas, then by smaller boats into Krum Bay and piped up to the top of the hill (above WAPA plant remember) into massive 350 thousand gallon storage tanks?
– Has the Environmental Protection Agency issued all the right permits, and agrees with this project?
– Has the Department of Homeland Security (who has people and facilities that would be directly impacted too) been informed about the project and its’ proximity to air, cruise and cargo ports, plus the only water plant, only power plant on the island? And they have given their official approvals to this WAPA project that everybody is rushing to complete?
– Has the government figured out how, if something catastrophic was to occur, they would get help from other islands or the States? No airport, no power plant, no cargo facilities, no VITEMA. Would they have to call the US Navy?
– Has the US Navy, Department of the Interior and the US Coast Guard ALL agreed to this really dangerous venture of this government? In writing??
– Has WAPA received all necessary and required permits form all interested agencies?
– Has anybody spoken to the PEOPLE of the Virgin Islands, to explain all sides of this project, not only the dubious cost savings, and what to do in cases something should go wrong, as can be seen by how WAPA is currently running, or not running?
– Has anyone seen any news about WAPA ordering additional or specialized firefighting equipment, and the fireboats??
– Has anyone learned of any additional positions available at the Fire Department that are necessary for this type of fuel disaster?
– Has anybody been hired at the hospital to handle both mass casualties and major burn injuries?
– Has anybody mentioned how the Virgin Islands would survive given the absolute danger these massive gas bombs hold?
There are so many many unanswered questions and issues that require immediate attention.
This is not a political game or anything but a call to all that before the very first drop of this very dangerous and highly explosive gas fuel is brought to the USVI, everybody needs to know they are safe and secure, and that all aspects of everyone’s safety has been addressed. The People need to know how all of the various agencies are prepared.
+DO YOU KNOW WHAT 3 MILLION GALLONS OF PROPANE EXPLODING ON A HILL MIGHT DO?
+IS WAPA AND THE GOVERNMENT PREPARED?
+WHAT HAVE THEY DONE SO FAR?
+HAVE THEY DONE ANYTHING AT ALL?
…WE NEED ANSWERS! OUR VERY LIVES DEPEND ON IT!!
Has WAPA coordinated ANYTHING with any sector of the community about Emergency Response Plans? Have they even mentioned any of this??
What Are Emergency Response Plans (Sections 301-303)?
Emergency Response plans contain information that community officials can use at the time of a chemical accident.
Community emergency response plans for chemical
accidents were developed under section 303. LEPCs are required to update these plans annually. The plans must:
• Identify facilities and transportation routes of extremely hazardous substances;
• Describe emergency response procedures, on and off site;
• Designate a community coordinator and facility coordinator(s) to implement the
plan;
• Outline emergency notification procedures;
• Describe how to determine the probable affected area and population by
releases;
• Describe local emergency equipment and facilities and the persons responsible
for them;
• Outline evacuation plans;
• Provide a training program for emergency responders (including schedules);
and,
• Provide methods and schedules for exercising emergency response plans.
H-E-L-L-O…..anybody home? I sure hope the Fire Department and EMS are fully trained, fully staffed and fully equipped to handle something with a very real potential for massive devastation.