Hovensa Demands WAPA Pay In Advance for Fuel

How about a special catch up tax to clear the WAPA debt? Let's see: $39.8 million (current and past due owed by WAPA) divided by 40,648 households (according to census) = $979 added to every residential WAPA bill next month. Or we could just tax the adults: $39.8 million divided by 74,323 = $535 per adult. Or we could tax the "rich" -- those in the top bracket of the census (more than $75,000) and each one could write a check for $9,446.

These kinds of deficits are unsustainable and it's no surprise that Hovensa has called in their markers. I mean WAPA is being run like it was GM or Countrywide. WAPA could be a cash cow for Hovensa and offer residents stable rates and more reliable service. But even if it is "excess capacity" Hovensa isn't going to be selling electricity at cut rate prices.

It is interesting that the LEAC is MORE than the current price of oil. I bet that WAPA will be very slow to adjust the LEAC down.

or as a gesture of goodwill mosler,brandt and stanford could each write a check hahahaha

Don't forget about all the WAPA employees living in GOVERNMENT paid housing.
If WAPA was sold AND the government has to pay their bills I suspect these folks would have a lot to loose...

...expose the corruption of the government appointing people to jobs as political favors at the authority.....Or is that asking to much.

Don't be so sure. Hovensa has traditionally sold oil to the island at less than market rates. Last year Hovensa took a $35M hit on subsidizing sales to the local islands. I don't know if they still sell below market rates or if they stopped would they continue once WAPA catches up on its obligations.

...Hovensa isn't going to be selling electricity at cut rate prices...

hovensa's rack rate here is 1.33 in new jersey it's 1.17 according to a caller on free speech,why the disparity in prices?

GoodToGO - Let's just hope that Hovensa is INTERESTED. If anyone from management. at Hovensa is reading this:

FOR SALE: This is an established business with a huge potential for growth. Opportunity is a turnkey business with a fully trained staff. Complete with all inventory and equipment. Ideal island location with room for expansion. Please send inquires to Governor.

Prepare for Black outs!!!!!!!!!!!!!!!!!!!!!!! this is always going to happen when they don't have the money to pay hovensa then they start with the rolling balckouts until they have the money to pay.

I think "blackouts" are being done due to a maxed out generation capacity.
When your energy source (oil) is cut off you can't generate any electricity.
But I guess that would be called a system wide blackout?
I suppose Hovensa could force rolling blackouts by restricting the rate of "free" oil to WAPA?

All Oil companies have posted record profits this last quarter. So how about a tax on the oil refinery "per gallon "of refined oil that would go to WAPA since WAPA is a Govt owned entity. Wind fall profit tax is not unheard of. Since 50% of Hovensa is owned by a foriegn investor/owner. Any monies or oil that leave the US or its territories would be subject to the tax.

Does not the majority of refined oil products go to the US or its territories? thus would not be subject to the tax?
A per gallon tax on oil that is sold to WAPA would be the same as offering a discount to WAPA?
Since all product leaves the islands via tanker, Hovensa is only one tanker per week (=/-) from selling and shipping 100% of their product elsewhere.
I wonder, does WAPA buy 100% of the oil needed only from Hovensa?

Yes the major oil companies once again posted record profits. Mobil/Exxon being the one in the news the most it seems.
Posting net income of $11.68 billion on revenue of $138 billion in the second quarter.
Is 8.46% profit considered Windfall profit?

Exxon's Second-Quarter Earnings set a Record-NY Time.com
33% increase in the second quarter of 2008 and wait till you see the profits in the 3rd quarter when posted! That's a wind Fall to me.

Public companies like ExxonMobil only hold about 18% of the world's oil reserves; the rest is owned by nations or state-controlled companies. http://www.gravmag.com/oil2.html

That's 8.46% after taxes. I don't know about windfall but it's about 3X the rate on my tax free investments. Of course, I didn't take the risk of drilling any dry holes. On the other hand, I didn't get to write off my travel and entertainment (rats!). Anyway, I have no problem with XOM earning 8.46% but it's neither a windfall nor a slim operating margin.

Exxon Mobil Corp, Conoco Phillips, BP PLC an French energy Co altogether jumped more than 40 Percent in second quarter Profits to $51.5 billion, the first time big western oil companies have ever reached that level. as reported by istock analyst!

I've said in the past, I'M not that smart but I think a Wind Fall Profit Tax might work. The old saying about "Liars Figure and Figures don't Lie" might be appropriate here.

or as a gesture of goodwill mosler,brandt and stanford could each write a check hahahaha

Or Turnbull. Wasn't it under his leadership the last company backed out of buying WAPA? A few guys retirement might
have been jeopardized. Now everyone's retirement is in danger, not to mention the businesses going out of business (there goes the tax base.)

Trade,i have no way of verifying this,but the hodge guy from wapa said that the company that was trying to buy wapa ended up buying the power company in jamaica and going bankrupt

With respect to HOVENSA, 50% is owned by Petróleos de Venezuela S.A., which is wholly owned by the Venezuelan state and is the holding company for their national petroleum industry. The next largest block of stock in the company is owned by Hess Oil CEO John Hess, who owns 14%. The balance is distributed among lesser stock holders.

So, people here are comfortable with the idea of turning control of USVI basic utilities over to the Venezuelan government, which as of October 20, 2007 is officially run by the United Socialist Party of Venezuela?

Chavez gives oil away, maybe he give some to us. In Maine he gave an entire tanker load of fuel oil to non profit groups a couple of years ago.

Dnt, could it be any worse?

Experience has taught me that things can always get worse. That doesn't mean HOVENSA would necessarily be worse than the VI government, but that certainly could be the case.

hess has done more for the people of STX than the government ever has,they provide over 1000 jobs,they can always be counted on to sponsor community events,they give scholarships to local highschool students and so i guess i would'nt have a problem with them running wapa,it sure would be alot more efficient than it is now,what country in europe is not socialist and how much property and business do they own in the states? It's fairly obvious that local state owned anything down here is bound to fail.

Ditto, Trw.

I've always heard the old timers here or at least the liberal old timers talk of hess as the deal with the devil. Yes it brought in money and jobs but didn't it also destroy large mangroves and other wildlife when they built hovensa? Man bad, nature good type of thing.

well actually the plantation era destroyed pretty much the entire eco system that existed here back then,but i guess if i had to choose a tree or a job that would feed my family i'd take the job,did'nt the navy blow up the land connecting hassel island to the mainland years ago?

I suggest a commemorative a statue of Hugo Chavez in downtown C'sted in exchange for cut rate power. If Bush wants to make a better offer, he can have that honor. As an additional incentive, the benefactor can be mounted on a horse with saber raised in exchange for supplying cheap water,

seems to me that charges could be brought against some former senators, maybe current ones, as well as former governors...for criminal negligence. Maybe it's time to write our former congresspeople back up north and ask them to intervene. I'll start tomorrow.