Senate Vice President Kenneth L. Gittens stated that the recently released Ernst & Young turnaround report on Virgin Islands Water and Power Authority operations highlights significant operational and financial concerns facing the utility, a few of which may be surmountable.
The report also confirms concerns raised by Senator Gittens over the years about the critical need for increased oversight and comprehensive reform within WAPA.
“We are still experiencing significant electrical and water line losses, both of which must be addressed,” Senator Gittens said. “I expect that as we replace water lines on St. Croix, this will begin to help correct the problem, but I have questions about what is being done to fix the more than 17 percent electricity loss, which the report states is much higher than the 5 percent industry average.”
Senator Gittens is urging the board and management team to take the line losses seriously, reinstate hedging of fuel prices, and explore options for refinancing WAPA’s debt.
“These are all somewhat within WAPA’s control and may at least help stabilize rates,” the Senate Vice President said. “This report, while enlightening, unfortunately does not offer much good news for the Territory’s ratepayers.”
Senator Gittens noted the need for full transparency and accountability to tackle the systemic problems within the utility and emphasized that WAPA must undergo comprehensive reform to address these deficits and secure its future viability. He added that while the Ernst & Young report is a step toward uncovering the extent of the challenges facing WAPA, it is not enough.
“That’s why I have been advocating for an independent audit through the V.I. Inspector General’s Office,” Senator Gittens said. “In 2023, I introduced legislation that led to the passage of Act No. 8731, which mandates that the Inspector General’s office conduct a thorough audit of WAPA’s operations. The results of this audit are critical in guiding any further action to reform WAPA and hold individuals accountable for past mismanagement. The Ernst & Young report paints a troubling picture of WAPA’s financial health and confirms what I have been saying for years — there is waste, fraud, and abuse at WAPA that cannot be ignored. It is past time for a fundamental change in how this agency operates in order to safeguard our Territory’s energy infrastructure.”
