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GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS PUBLIC SERVICES COMMISSION IN RE: PSC Docket No. 289 THE VIRGIN ISLANDS WATER AND Order No. 9/2015 POWER AUTHORITY’S LEVELIZED ENERGY ADJUSTMENT CLAUSE ORDER WHEREAS, on August 15, 2014, the Virgin Islands Water and Power Authority’s (hereinafter “WAPA” or “Authority”) filed a Petition with the Virgin Islands Public Services Commission (hereinafter “PSC” or the “Commission”) for the Electric and Water Levelized Energy Adjustment Clause (hereinafter “LEAC”) factors for the period of October 1, 2014 to December 31, 2014; and WHEREAS, on September 25, 2014, the Commission received a Report and Recommendations from its technical consultants, Georgetown Consulting Group, Inc.; and WHEREAS, on September 29, 2014 , the Commission met in regular session in the Commission’s offices on both St. Thomas and St. Croix and heard from representatives for the Authority and the Commission’s technical consultants; and WHEREAS, the Commission has reviewed the Authority’s Petition for new Electric LEAC rates for the period of October 1, 2014 to December 31, 2014, the supporting information, and the report of the Commission’s technical consultants; and WHEREAS, the Commission finds that the RFM component of the LEAC rate (i.e., $0.023/kWh) was adopted when the Commission concluded that it was cost effective and would result in annual benefits to consumers in excess of $35 million, and therefore found it was reasonable and prudent, to impose an additional component to the LEAC rate: 1. Ifan expenditure of additional funds would result in greater fuel savings from improved efficiency than the cost of the program; and 2. That the emergency generator was a key element of the short-term program to ensure that power was stabilized on St. Thomas and St. John, and that sufficient capacity was available to perform the necessary maintenance on other units; and