Press Release Details

Vitol Declares WAPA In Default: Will Suspend LPG Fuel Supply On Saturday

Dec 23, 2019


The Virgin Islands Water and Power Authority
Corporate Communications
Contact: Jean P. Greaux, Jr., Director of Corporate Communications
340-774-3552 extension 2147 or 340-244-7330

communications@viwapa.vi / www.viwapa.vi

December 20, 2019



     Shortly after the December 12, 2019 meeting of the Virgin Islands Public Services Commission, the V.I. Water and Power Authority’s propane fuel supplier, Vitol, declared the Authority in default of its payment obligations to them.

     The Authority has been petitioning the PSC for rate relief for over one year so that the Authority may pay its Vitol and other obligations. The PSC’s actions at last week’s meeting make it impossible for WAPA to pay its obligations to Vitol, re-finance the LPG project at longer terms and lower rates, and complete other critical refinancings that will lower the cost of electrical service to our customers.

     In their default notice, Vitol indicated that they would be suspending propane deliveries at noon on Saturday, December 21, 2019. This action by Vitol will force the Authority to shut down its most efficient propane-fueled generators, and only use much more expensive No. 2 oil on its older, less efficient generators. The Authority does not have revenues to pay these higher fuels costs and will not be able to sustain electrical generation without an immediate infusion of cash.


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The Virgin Islands Water and Power Authority is an autonomous agency of the Virgin Islands Government which produces and distributes electricity and drinking water to residential and commercial customers in the territory. WAPA was created by the Fifth Legislature of the Virgin Islands in 1964 through Act No. 1248. Today, WAPA generates electrical power at production plants on St. Thomas and St. Croix, and distributes electrical service through smart grids to customers on St. Thomas, St. Croix, St. John, Hassel Island, and Water Island. Potable water is distributed to almost 13,000 customers through water lines and standpipes. WAPA also has the responsibility of installing and maintaining street lights.