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Read the entire article at:
http://virginislandsdailynews.com/news/wapa-board-outlaws-long-term-fixed-rate-agreements-for-power-sales-1.1544299
ST. CROIX - "The V.I. Water and Power Authority governing board passed a resolution on Thursday that will affect how it moves forward negotiating with entities that want to sell it power."
"The resolution precludes WAPA from entering into long-term power purchase agreements at fixed-cost rates."
Here is a letter to our senators from a friend that is very concerned about this situation.
Please take action on this somehow --- WAPA must not be alowed to nix agreements that are good for the VI economy and public.
Dear Senators:
I am very concerned about the news today regarding the WAPA Board resolution to preclude WAPA from entering fixed rate Power Purchase Agreements, as recommended by Hugo Hodge. And you and the entire VI community should also be concerned.
This would likely be delivering a "death blow" to many opportunities for renewable energy providers and projects to bring down the cost of power in the VI. And instead, to continue enabling WAPA to charge excessively high costs that are based primarily on WAPAs failure to effectively manage its utility and grids, and power generation.
Fixed rate agreements offer the public, and businesses relied on for our entire economy, to have certainty relative to power pricing. They are one of the cornerstones of agreements surrounding renewable energy supplies being delivered into utility grids. PPAs are being entered into in the region that are as low as $0.13 per kilowatt-hour, whilst WAPA charges what they do. If a solar or other renewable energy project developer says they can deliver so many Megawatts of power to the VI grid at prices as low as $0.13-0.15 per KWH for a period of 20-25 years, why in the world would we not jump on those opportunities? If you really believe Hugo's justification for this measure --- that somehow prices might fall below that --- Well I've got a bridge to sell you somewhere. At what point are those in a position to stop the nonsensical public and resource management practices and policies in the USVI going to put their feet down, and say enough is enough, and instead say "We are no longer going to buy into the lie that somehow the laws of physics, engineering, science and economics don't apply to the USVI."
Please read the article in the link below, which is found on NRELs website. Weren't we just "yesterday" relying on NREL for advice on these matters? Now that their involvement is no longer being subsidized by the federal govt (at least not to any previous extents), are going to watch WAPA now just return to "business as usual"? It is WAPA, not Hovensa, that has done more than anything to kill the VI economy. Were it not for WAPA and other VI programs and their mismanagement and failure to represent the public's good and interests and their "mischief making", we would have more than weathered the economic downturn. The VI did after all receive 2 to 4 times per capita in ARRA Stimulus Funding starting back in 2009, as compared with the highest U.S. state funding recipients (NY, CA and TX). But what do we have to show for it at the hands of all of this mismanagement?
Please put your feet down on these critical issues. Below is a link to the NREL guidance information on this matter. There is an entire section on recommendations on PPA financing terms and conditions. Those guidelines are used by states / local governments all over the U.S. Do we really want to continue being out of step with the rest of the advancing world?
Attached is the VIDN article if you happened to miss it. I've blind-copied a number of persons who I believe will share my concerns about this policy "twist".
Regards,
Susan Parten, P.E.
This was sent to the following Senators:
judi@judibuckley.org ; dcapehart@legvi.org ; dcole@legvi.org ; kgittens@legvi.org ; cgraham@legvi.org ; ahansen@legvi.org ; mjackson@legvi.org ; senatormalone@gmail.com ; troach@legvi.org ; cpayne@legvi.org ; teamnellie@gmail.com ; smmalone1@yahoo.com ; jyoung@legvi.org ; payne.clarence@gmail.com ; sammuelsanes@yahoo.com ; positive__1@hotmail.com ; craig@visenate.org ; edorsett@legvi.org
Posted : September 1, 2013 12:53 pm
Topic starter
Here's another article on WAPA:
ST. CROIX - Citing weakness in the V.I. Water and Power Authority's liquidity and the territory's challenging economic environment, Moody's Investors Service has downgraded WAPA's bond ratings.
"I'm disappointed in the downgrade," WAPA Executive Director Hugo Hodge Jr. said.
The utility is in a better spot now than it was a year and a half ago, when Moody's did its last credit rating evaluation, Hodge said.
Moody's Investors Service - one of three global credit rating agencies recognized by the Securities and Exchange Commission - made the downgrade, which affects approximately $294 million in securities, on Wednesday.
The downgrade drops WAPA's senior bonds from a "Baa2" rating to a "Baa3" rating. The "Baa" designation means Moody's judges the bonds to be medium-grade and subject to moderate credit risk, while the "3" indicates a ranking in the lower tier of that general category.
The downgrade also moved WAPA's subordinated lien bonds from "Baa3" to "Ba1," which means they are no longer considered investment grade. Moody's judges obligations rated "Ba" to be speculative and subject to substantial credit risk. The "1" indicates a ranking in the higher tier of that category.
The outlook on the bonds remains negative.
Read entire article: http://virginislandsdailynews.com/news/1.1544714
Posted : September 1, 2013 1:06 pm
Rate increase coming...due to higher borrowing costs.
Posted : September 3, 2013 12:21 pm
