The V.I. Water and Power Authority filed an emergency request Monday to raise the fuel surcharge on customer bills by three cents per kilowatt-hour, citing mounting financial strain from elevated crude prices and dwindling cash reserves.
If the Public Services Commission approves the proposal, a typical household consuming 400 kilowatt-hours monthly would see its bill rise by approximately $12. The fuel-cost component, formally known as the Levelized Energy Adjustment Clause (LEAC), would climb from roughly 22.22 cents to 25.22 cents per kilowatt-hour.
WAPA pointed to sharp increases in global fuel costs since submitting its original fourth-quarter request in July. Brent crude, the international benchmark, traded above $100 a barrel on Monday at $102.30. The utility reported deferred fuel costs of approximately $14 million as of late May 2026 and warned that fourth-quarter projections signal worsening liquidity pressures.
Oil markets have swung dramatically over recent months. Brent peaked at $119.50 in March, then retreated to $77.68 in July before climbing back above $100 in September following attacks on Middle Eastern energy infrastructure.
Chief Executive Officer Karl Knight acknowledged the hardship the increase would impose. "This is not where we want to be," he said, adding that WAPA must act transparently about its financial position and take steps to sustain operations and customer service while pursuing longer-term cost reductions.
Governor Albert Bryan Jr. signalled in late September that federal subsidies shielding ratepayers from price shocks have run out, narrowing the government's room to cushion bills.
The PSC held the fuel charge unchanged through December 31 in a September decision while continuing to evaluate WAPA's submission. The commission retains authority to approve, modify or reject the emergency bid. The utility's strategy for reducing costs over time encompasses generation upgrades, fuel switching, renewable energy deployment and battery systems.
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