The V.I. Water and Power Authority's board voted Tuesday to delay repayment of $63.74 million in bond anticipation notes, shifting the due date from September 30 to June 30, 2027.
The nine-month reprieve allows WAPA's leadership to negotiate refinancing arrangements designed to keep costs down and prevent the authority's total debt from growing substantially. Chief Financial Officer Lorraine Kelly had initially sought an extension only through the end of 2026, but director Joan Foy argued for the longer window to spare the board from approving multiple short-term extensions.
The notes have been extended twice already this year, in July and August. Kelly indicated that pushing the maturity to June could add roughly $4.5 million in interest charges, though she stressed this figure was already factored into WAPA's spending plan.
Chief Executive Officer Karl Knight drew a distinction between the bond anticipation notes and the federal recovery money flowing into WAPA for major infrastructure work. The notes fund immediate operational needs, staff salaries, equipment, supplies, utilities and rent, when customer payments do not cover expenses.
"To the extent that those fall short, we have to raise funds through other financing mechanisms," Knight told the board.
The 2021 notes were issued to cover costs tied to propane generators and temporary leased power units. The 2024 notes originated from a refinancing sequence that started in 2022. Both were set to mature on September 30.
Five directors voted to accept the June 30 date. Board Chairman Maurice Muia voted against the extension. Newly appointed director Lynton Scotland, confirmed by the 36th Legislature on September 24, abstained. Scotland brings over 30 years of experience in utility operations from positions at Consolidated Edison, NRG Energy and DuPont.
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