Virgin Islands Water and Power Authority CEO Karl Knight is set to face the Public Services Commission (PSC) on Tuesday, where he will confront mounting concerns over frequent power outages, the state of the utility’s infrastructure and slow progress of critical projects, along with public frustration over power restoration efforts in the wake of Tropical Storm Ernesto.
In an exclusive interview with the Source, Knight addressed the daunting challenge of eliminating power outages, acknowledging that a future without them is unlikely. “There’s always going to be outages—mechanical failures occur, equipment breaks down, there are storms,” Knight said, echoing the sentiments of his predecessor, Andy Smith, who previously told senators that the age of WAPA’s equipment makes a total overhaul impossible without significant capital investment. However, Knight emphasized WAPA’s efforts to minimize both the frequency and duration of outages, highlighting advancements in technology like battery energy storage and the ongoing effort to bury cables underground.
Despite these efforts, Knight admitted that the public’s perception of WAPA remains a significant hurdle. “We’re in the midst of a lot of major projects, and I know people feel frustrated—they don’t think these projects are having an impact,” Knight said. He pointed to the installation of a new battery energy system on St. Thomas – the first of its kind – and the upcoming addition of four fuel-efficient Wartsila generators at the Harley Power Plant on St. Thomas by the end of the year as examples of projects that will eventually have a tangible impact. “These projects are going to change how we operate, but as long as there are outages, people don’t connect the work with something positive,” he noted.
One of the most significant undertakings is the planned replacement of the Richmond Power Plant on St. Croix, a project Knight described as a “game-changer” for the island. FEMA’s commitment to rebuilding the aging plant allows WAPA to reprogram $53 million in HUD funds that were originally earmarked for Richmond. These funds can now be redirected to address other critical needs across the territory, including the addition of new generators on St. Thomas, which will complement the existing Wartsila units and fundamentally alter the island’s power landscape.
While these projects promise a more reliable and resilient power system, Knight was candid about the financial challenges WAPA continues to face. He cited delayed projects and rising costs as major factors squeezing the utility’s cash flow. “WAPA’s challenge isn’t the capital projects—those are going to have the intended impact,” Knight explained. “The real problem is WAPA’s cash flow and liquidity right now. We have to function within the current rate structure, even though the cost of goods and services has gone up through the roof.” He emphasized the need to shrink expenses and grow WAPA’s revenue base without passing inefficiencies onto ratepayers.
Accountability is another area where Knight sees room for improvement. He acknowledged that past project delays have undermined public trust and stressed the importance of holding staff accountable moving forward. “We’ve run out of time and now have to do everything as expeditiously and urgently as we can,” Knight asserted, signaling a shift in how WAPA will manage its projects in the future.
Knight also addressed the growing frustration over billing irregularities, which have plagued WAPA customers in recent months. He attributed the issue partly to failures in the utility’s aging Advanced Metering Infrastructure (AMI) and announced that FEMA is stepping in to replace a large section of the AMI system. Additionally, Knight highlighted ongoing efforts to modernize WAPA’s billing interface to prevent future irregularities. “We can’t project revenues if we can’t accurately bill or know what those bills should look like,” Knight said, adding that resolving this issue is a top priority.
Looking ahead, Knight outlined several key initiatives set to roll out in the next 30 to 60 days, including the launch of the territory’s first battery energy storage system and the interconnection of a solar farm on St. Croix. With the recent end of WAPA’s exclusive relationship with Vitol, the utility is also exploring opportunities to purchase propane on the open market, which could further stabilize costs, he said.
