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WAPA CHIEF EXECUTIVE OFFICER OPTIMISTIC

(Wednesday, January 14, 2015)

January 14, 2015

WAPA CHIEF EXECUTIVE OFFICER OPTIMISTIC AT IMRPOVED RATING OF ELECTRICAL SYSTEM REVENUE BONDS

Virgin Islands Water and Power Authority Executive Director Hugo V. Hodge, Jr. said Wednesday he was encouraged the decision of the Standard and Poor’s Rating Services to revise its outlook on WAPA’s electric system revenue bonds. S&P announced Tuesday that not only had it revised the revenue bonds outlook from “negative” to “stable”, it also affirmed its “BBB-” senior-lien rating and its “BB+” subordinate debt ratings on the bonds.

“The Water and Power Authority continues to take major steps forward in its overall strategy to reduce its dependence on oil to generate electricity while at the same time, improving its efficiency while adding renewable energy sources to the power grid,” Hodge said, adding, “I anticipate that we will continue to see positive revisions to the outlook as we improve our competitive position through rate cuts for our customers and the steady progress being made to wean away from our once 100% dependence on oil in the production of electricity.”

Hodge said WAPA will continue to capitalize on the decline in oil prices on world markets while continuing on a steady path to introduce lower cost propane powered generators and solar power to the electrical grid across the territory. “Through these means, we will avoid our exposure to the oil price swings that are so detrimental to the overall cost of electricity to all of our customers.”

The current rate of electrical service for residential customers is 39 cents per kilowatt hour and commercial clients are presently paying 42 cents per kilowatt hour, down from 51 cents for residential service and 56 cents for commercial users, as recent as September 2014.
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