Petition for Permanent Electric System ) Order No. §7/2017
GOVERNMENT OF THE VIRGIN ISLANDS OF THE UNITED STATES Public Services Commission Inre The Virgin Islands Water & Power Authority —_) Docket No, 651 Petition for Permanent Electric System ) Order No. §7/2017 Base Rate Relief (Docket 651) ) ) ) ORDER WHEREAS, in 2013, the Public Services Commission (“Commission™ or “PSC™) concluded Dockets 611 and 612, which provided new base rates for the Water and Power Authority’s (hereinafter “Authority” or “WAPA”) electric and water systems, respectively; and WHEREAS, no later than 2014, the Commission began expressing its concern with the accuracy and propricty of WAPA’s base rates and its Levelized Energy Adjustment Charge (hereinafter “LEAC”) rate: and WHEREAS. the LEAC, which had been created on or about 1988 to fund changing costs of fuel above or below the fuel amounts included in base rates: and WHEREAS, in 2003 the LEAC was changed to include all fuel and energy charges; and WHEREAS, over the prior several years, an increasing number of other charges were included in the LEAC in an effort to reduce fuel charges. …
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GOVERNMENT OF THE VIRGIN ISLANDS OF THE UNITED STATES Public Services Commission Inre The Virgin Islands Water & Power Authority —_) Docket No, 651 Petition for Permanent Electric System ) Order No. §7/2017 Base Rate Relief (Docket 651) ) ) ) ORDER WHEREAS, in 2013, the Public Services Commission (“Commission™ or “PSC™) concluded Dockets 611 and 612, which provided new base rates for the Water and Power Authority’s (hereinafter “Authority” or “WAPA”) electric and water systems, respectively; and WHEREAS, no later than 2014, the Commission began expressing its concern with the accuracy and propricty of WAPA’s base rates and its Levelized Energy Adjustment Charge (hereinafter “LEAC”) rate: and WHEREAS. the LEAC, which had been created on or about 1988 to fund changing costs of fuel above or below the fuel amounts included in base rates: and WHEREAS, in 2003 the LEAC was changed to include all fuel and energy charges; and WHEREAS, over the prior several years, an increasing number of other charges were included in the LEAC in an effort to reduce fuel charges. which included the Rate Financing Mechanism (hereinafter “RFM”; which itself funded a number of activities including previously deferred generator maintenance, spare parts procurement and lease expenses for a “temporary” emergency generator now known as Unit 25), and initial expenses for the infrastructure charges associated with the VITOL project to convert generators to propane/LPG; and WHEREAS, the Commission had approved those other items in the LEAC in an effort to make generation more efficient and to reduce the overall fuel expense, these expense were not intended to be a permanent part of the LEAC; and WHEREAS, the Commission desired to properly allocate expenses to base rates and retum the LEAC to a fuel only basis; and WHEREAS, at its meeting in December 2014, PSC Chair Clendenin requested that WAPA file a new base rate case promptly; and WHEREAS, at the Commission’s March 2015 meeting WAPA stated that a new base rate proceeding will be filed by June 2015; and