The Virgin Islands Supreme Court has upheld a law reshaping the leadership of the Water and Power Authority, marking a significant decision for the territory’s largest utility provider and potentially impacting its governance moving forward.
The case, Bryan and Government of the Virgin Islands v. Virgin Islands Water and Power Authority focused on Act No. 8472, a 2021 law passed by the V.I. Legislature that reduced WAPA’s board members from nine to seven, set professional criteria for nongovernmental members, and limited the governor’s ability to appoint and oversee board members.
Background and Issues
Gov. Albert Bryan Jr., joined by the V.I. government, challenged a March 2023 Superior Court decision that upheld Act No. 8472 as constitutional. The act significantly altered WAPA’s Governing Board, reducing the governor’s appointed governmental members to only one—the director of the Virgin Islands Energy Office—and requiring nongovernmental members to have specialized expertise in areas like engineering, environmental science, and public affairs. Bryan argued that this act intruded on executive authority outlined in the Revised Organic Act of 1954, which vests the executive with control over the administration of public utilities like WAPA.
According to Bryan’s administration, the act’s restructuring of WAPA’s board diluted executive oversight, leaving fewer representatives aligned with the executive branch in an agency that delivers essential water and electricity services. Additionally, Bryan challenged the new requirement barring government employees from board positions as arbitrary, asserting it violated equal protection by disqualifying certain individuals based on employment.
Legal Arguments and Court Findings
Central to Bryan’s appeal was his assertion that Act No. 8472 intruded upon his authority to supervise an executive agency and weakened the governor’s influence over WAPA’s board by limiting appointments. The administration maintained that WAPA operates under the executive branch, meaning legislative restructuring interfered with executive functions. Bryan also contended that the act’s requirement for specific qualifications for nongovernmental board members excluded knowledgeable government employees without valid justification, which he argued undermined equal protection principles.
The Legislature defended Act No. 8472 as part of its legislative power to define the structure and qualifications of public utility boards like WAPA’s, focusing on the goal of improved service reliability through qualified oversight. In a ruling this week, the Supreme Court ruled in favor of the Legislature, finding no conflict with the Revised Organic Act’s provisions regarding executive and legislative powers. In its decision, the court emphasized that the act was within the Legislature’s authority to establish professional standards for board members, considering the utility’s long-standing service challenges.
The court upheld that the legislative body has the power to adjust public corporation governance to achieve higher accountability and expertise, especially within essential services like WAPA.
Impact of the Decision
This ruling reinforces the legislative authority to shape public utilities’ oversight, potentially setting a precedent for similar structural changes across other public agencies. By affirming Act No. 8472, the court recognized the Legislature’s power to implement reforms designed to stabilize and enhance WAPA’s governance. This decision underscores the judiciary’s role in balancing legislative powers with executive oversight, asserting that the Legislature can mandate structural changes to utility governance without violating executive authority.
Sen. Majority Leader Kenneth Gittens, a primary sponsor of Act 8472, welcomed the ruling, describing it as an important step toward transparency and accountability at WAPA. “This is a victory on behalf of the people of the Virgin Islands, and going forward, all board members must be appointed to manage the Authority per Act 8472,” Gittens said. He noted that while the Administration’s challenges delayed the law’s implementation, both the Superior and Supreme Courts ultimately upheld the Legislature’s authority.
Gittens, who previously led investigations uncovering extensive waste, fraud, and abuse at WAPA, emphasized the continued push for reform, citing ongoing billing and metering issues as top priorities. Legislative oversight has already prompted a full audit of WAPA and the hiring of a turnaround management firm to address inefficiencies.
Asked by The Source for his perspective on the decision’s impact, Bryan stated that the ruling would not have an operational effect, which was echoed Wednesday by the authority’s Chief Executive Officer Karl Knight.
“We were already complying with the law when the matter was appealed,” Knight shared. “Though it does mean that one of the most critical agencies in government has one of the smallest boards, seven members when compared to the other government agencies.”
