Is the VI Government Keeping WAPA in the Dark Ages, and Your Utility Bills High?

The payment, coupled with the work of the Administration in securing a line of credit for WAPA, is a significant step towards not only easing the cash flow crunch at the public utility but solidifying WAPA’s operational stability which may result in a reduction of rates to V.I. consumers.

-Virgin Islands Governor John deJongh

In an article entitled, "V.I. Coughs Up $17.5M for Debts to WAPA" the Source details a plan to pay some of the money owed to the Virgin Islands Water and Power Authority (WAPA).

Now, I don't know how this is supposed to work. But, I would imagine that if you or I were behind in our bills our electricity would be cut. Apparently, the Virgin Islands Government has a different idea. They feel as though they could run up the bill and never pay...or allow payments to fall way behind.

(Funny though, we're discussing appropriation of $34 Million to open a private fish farm, but don't have the money to pay our bills. hmm.....)

And then, I read the comments by the Governor stating that paying the government's bill "may result in a reduction of rates to V.I. consumers." Uh, you think?

WAPA is already strapped for cash. With a $46 Million cash shortfall, it's hard to imagine that any repairs woujld be done to the antiquated facilities. WAPA's budget for FY2009 projects a net loss of $307,000! Under these circumstances, WAPA could be forced to raise rates even more.

To top it all off, Standard and Poor’s (S&P) has revised its outlook on WAPA to “negative” from “stable.” A negative rating will - of course - make it difficult for WAPA to receive any loans to meet its budget shortfalls. And, S&P has suggested that WAPA apply a fuel surcharge to compensate for rising fuel costs. This, as well, could force WAPA to raise its rates to you - the consumer.

All this, and the Government is not reliably paying its bills. All this, and the Government has no qualms passing along undue burden to Virgin Islanders?!

That burden is not simply felt in the pocket. It is also seen with the eyes...well, make that not seen. The Source reports:

The results have been evident over the past few weeks -- constant power outages and rolling blackouts continue on all three islands, as generating units continue to fail or have to get taken out for repairs.

We have been living with this for decades. If the wind blows to hard, the power goes out. If you sneeze on a Friday, the power goes out. If you watching your favorite show, the power goes out.

But, more money alone won't solve the problem. WAPA is also plagued by a problem of inefficiency. Again, we refer to The Source:

Projected revenues of $47.5 million are expected to fund $47.8 million worth of expenses...

As an organizational development consultant, I do strategic planning. And - as I would tell any Client, if ever your expenses are greater than your revenues there's a problem with the efficiency of provided services. Unlike other areas, there is only so much expansion to be done...there is an essentially fixed amount of customers who will need electricity. Unlike in the states, we cannot rely on "suburban sprawl." WAPA must work with the pool of customers it currently has. So, they must find a way to "do more with less," don't you think? If not, the only option is for Virgin Islanders to pay higher and higher rates. Is that what you want?

We must demand a plan!

Where else can you find a utility system so subpar? Yet while the people suffer from high priced, low quality service, the Government of the Virgin Islands shirks its responsibility to pay its bills. While the people can't enjoy a day of outtage free service, the Government of the Virgin islands has proposed no plan to rapidly enhance the efficiency and effectiveness of WAPA.

No one has determined to solve the problem. Don't you think that is a problem? I do.

But, this ain't about me: what do you think? Should there be a plan to increase the effectiveness and efficiency of WAPA's services? What should be in that plan?

Answer the Call: Virgin Islands for the Virgin Islanders...those at home and those abroad!