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GOVERNMENT OF THE VIRGIN ISLANDS PUBLIC SERVICES COMMISSION IN RE: Docket Nos. 289, 563, 606, 612, 613, 614, 620, 627, 632, 636, 638 and Annual Assessments Order No. 47/2016 Outstanding and Overdue Assessments of the Utilities Regulated by the Public Services Commission; i.e., Virgin Islands Water and Power Authority and Virgin Islands Waste Management Authority Teese Nome See Nem’ Some? Nee” Ste? Nee ORDER This matter is before the Virgin Islands Public Services Commission (hereinafter "Commission" or "PSC") as a result of the extraordinary delay and/or non-payment of both Annual and Docket Specific Assessments by regulated utilities. WHEREAS, the Commission is funded solely through an annual assessment on all utilities and docket specific assessments on specific utilities, and not through the general fund or tax revenues; and WHEREAS, the Commission’s general operations are funded through the annual assessment which is provided in Section 25a of title 30, which specifies in relevant part: (c) The annual fee for a particular public utility shall be an amount equal to the product of the Commission's total current year assessments and the public utility's revenue ratio. The revenue ratio of a public utility shall be equal to its gross operating revenues divided by the territorial gross operating revenues. The Executive Director of the Commission shall, prior to September 1 of each year, calculate each public utility's fees under this section, and after approval by the Commission, shal! notify each such public utility of the amount due. PSC Order No. 47/2016 Outstanding and Overdue Assessments April 18, 2016 prudent” rates for WAPA, thereby doing a disservice to Territory, WAPA, and its ratepayers; and WHEREAS, this issue has repeatedly been brought up for discussion on PSC agendas and on several occasions WAPA has indicated that it would bring its account current but has not done so; and WHEREAS, the Commission has in all cases permitted that the regulated utilities to include in its computation of rates the annual and docket specific assessments made, which means that these amounts are being or have been collected by the utilities; and WHEREAS, non-payment of its assessment orders from the PSC constitute an event that is subject to a fine, pursuant to Sections 39 and 40 of Title 30 of the Virgin Islands Code.* Each day that there is non-payment represents an additional violation; and WHEREAS, at its duly noticed meeting on March 15, 2016, the Commission ordered the imposition of penalties pursuant to Section 39 for each day that each overdue assessment order was in violation, and which the same Order No. 46/2016 suspended the imposition of penalties for a period of 30 days to permit the Authority bring the assessments current and avoid penalties; and 339. Penalty for violations (a) If any public utility shall violate any provision of this chapter, or shall do any act herein prohibited, or shall fail or refuse to perform any duty enjoined upon it, or shall fail, neglect, or refuse to obey any lawful subpoena, requirement or order made by the Commission, or any judgment or decree made by any court upon its application, for every such violation, failure, or refusal, such public utility shall forfeit and pay to the Government of the Virgin Islands the sum of $100 for each such offense. In construing and enforcing the provisions of this section, the act, omission, or failure of any officer, agent, or other person acting for or employed by any public utility acting within the scope of his employment and instructions shall in every case be deemed to be the act, omission, or failure of such public utility. (b) The Attorney General of the Virgin Islands, at the request of the Public Services Commission, or its designated agent therefor, shall forthwith bring appropriate action to compel adherence to, or enjoin violations of, any lawful orders of the Commission issued pursuant to this chapter, and to recover in the name of the Government of the Virgin Islands the penalties herein provided, and the Court shall give priority to any such actions. (c) The provisions of this section shall not apply to departments or agencies of the Government of the Virgin Islands furnishing public utility services, however, this provision shall not exempt the Government of the Virgin Islands from claims made pursuant to Title 3, chapter 118 of the Code. 40. Separate offenses That every day during which any public utility, or any officer, agent, or employee thereof, shall fail knowingly or wilfully to observe and comply with any order or direction of the Commission, or perform any duty enjoined by this chapter, shall constitute a separate and distinct violation of such order, or direction, or of this chapter as the case may be. PSC Order No. 47/2016 Outstanding and Overdue Assessments April 18, 2016 WHEREAS, on March 29, 2016, the Authority filed a Petition of Reconsideration challenging the authority of the Commission to impose the penalties provided in Order No. 46/2016; and WHEREAS, at the Commission’s meeting on April 18, 2016, the Commission heard from its Executive Director and the Authority’s Acting Executive Director and the Authority’s counsel; and WHEREAS, the Authority’s Acting Director Julio Rhymer and Commission Executive Director Donald Cole presented to the Commission an agreed payment program, as follows: April 22, 2016 $200,000.00; May 6, 2016 $200,000.00; May 20, 2016 $200,000.00; June 2, 2016 $200,000.00; June 16, 2016 $200,000.00; June 30, 2016 $200,000.00; July 14, 2016 $ 90,567.98; and NOW THEREFORE, it is ORDERED: 1. The Commission accepts the Water and Power Authority’s proposed payment plan; 2. The imposition of penalties is suspended so long as the Authority complies with the schedule for payments; 3. If those payments are not made, penalties begin to accrue on the next business day on all outstanding assessments; 4. The Petition for Reconsideration is denied. So Ordered. For the Commission, Date: April “8 , 2016 Mbgl- Johann Clendenin, Chair Exhibtt A PSC Report on WAPA Payments Of Assessments Assessments are estimates based on actual invoices on hand plus forthcoming invoices from Consultants, Hearing Examiners and/or Attorney's detailting work performed on a particular docket To date WAPA has several Docket Specific Assesments that are outstanding these assessments are as follows: Docket Num. Docket Name Order Num. Dated Amount 289 WAPA LEAC 36/2014 07/18/2014 175,000.00 620 WAPA Avoided Cost 37/2015 07/18/2014 5,000.00 627 Solar Delivered Complaint 38/2014 07/18/2014 1,500.00 627 Solar Delivered Complaint 08/2015 07/22/2015 2,000.00 632 WAPA Petition for Feed in 51/2014 07/19/2015 10,000.00 Taraiff for the Electric System 606 WAPA Approval of Solar 67/2015 07/15/2015 9,550.00 Energy Projects in Base Rate Electric 613 WAPA Petition For Increase 69/2015 07/15/2015 13,150.00 in Base Rate Water 614 WAPA Minimum Filing Req 70/2015 07/15/2015 32,220.00 612 WAPA Petition for Increase in 87/2015 09/23/2015 450.00 Base Rate Electric 636 Complaint of Sunny Isle 85/2015 09/23/2015 7,320.00 Consessions, (Subway) v. Virgin Islands Water and Power Authority 620 WAPA Avoided Cost 88/2015 09/23/2015 5,470.00 whee fetes PSC Report on WAPA Payments Of Assessments Assessments are estimates based on actual invoices on hand plus forthcoming invoices from Consultants, Hearing Examiners and/or Attorney's detailting work performed on a particular docket Docket Num. Docket Name Order Num. 289 638 289 612 638 620 563 620 289 620 289 WAPA Levilized Energy Adjustment (7/2016 WAPA Management Audit Report 8/2016 WAPA Levilized Energy Adjustment (29/2016 WAPA Petition for Ann. Rev. Increas: 30/2016 WAPA Management Audit Report 31/2016 WAPA Avoided Cost Study 32/2016 WAPA Petition for Insurance & hazai 33/2016 WAPA Avoided Cost Study 35/2016 WAPA Levilized Energy Adjustment (36/2016 WAPA Avoided Cost Study 42/2016 WAPA Levilized Energy Adjustment (43/2016 Total Outstanding Docket Specific Dated 10/27/2015 10/27/2015 1/11/2016 1/11/2016 1/11/2016 1/11/2016 1/11/2016 1/13/2016 1/13/2016 03/23/2016 03/23/2016 TO date WAPA has several Annual Assessment that are outstanding, these assessments are as follows: 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 72/2015 72/2015 72/2015 Total Outstanding Annual Assessment 2015 2016 2016 2,016.00 Amount 81,100.00 3,700.00 89,117.00 8,060.00 19,904.00 1,710.00 2,422.00 4,050.00 3,820.00 5,760.00 98,800.00 580,103.00 36,095.25 224,789.91 224,789.91 224,789.91 710,464.98 Summary: To date WAPA has a Total Docket Specific outstanding amount of Total Outstanding Annual Assessment of Total outstanding Annual Assessments and Docket Specific as of April 18, 2016 580,103.00 710,464.98 1,290,567.98 1,290,567.98