ST. CROIX — Governor Albert Bryan Jr. declared a state of emergency Monday to pay a $2.3 million debt the Virgin Islands Water and Power Authority owes Aggreko for leased generators to prevent more rotational power outages on St. Croix.
The executive branch paid WAPA $2,316,899.64 today to cover the utility’s debt owed to Aggreko, according to Richard Motta, Government House spokesperson.
Additionally, the Legislature of the Virgin Islands called for accountability within WAPA during a press conference held today in the Senate chambers between both island districts that was streamed live by the Legislature.
The governor’s declaration allowed him to bypass the Senate appropriation process and immediately access the $21 million in the Budget Stabilization Fund, or rainy-day fund, to make the payment by today’s deadline given by Aggreko.
Despite the state of emergency declaration to get Aggreko paid and prevent more rotational outages on St. Croix, WAPA announced multiple power outages for two-hour intervals on various Feeders that started Monday as part of the rotational outage schedule due to load capacity.
Senate President Novelle Francis Jr., who spoke during today’s press conference from the Earle B. Ottley Legislative Hall on St. Thomas, said the Legislature has worked collaboratively with the Bryan-Roach administration to ensure that WAPA continues to operate without power outages that are disruptive to residents, businesses, and the economy.
“We have seen time and time again where the needs of the Authority are prioritized over the needs of small businesses, business owners and vendors who are continually asked to wait for payments while cash is funneled to the Authority,” Francis said. “My colleagues and I completely understand the devastating consequences if measures are not taken to keep WAPA solvent and operational. What is missing from this entire exercise is accountability.”
The governor, while speaking during a special briefing Monday from Government House on St. Thomas, said the Single Payer Utility Fund does a good job of making sure that central government agencies regularly pay WAPA.
“That’s one fund where all the WAPA bills are paid out of, so it’s easy as governor for me to ensure that central government pays its bill, but some of the autonomous government agencies have adopted a practice of balancing their budgets during tough financial times by simply not paying their light bill,” Bryan said.
As of this week, the governor said three semiautonomous agencies — the Governor Juan F. Luis Hospital and Medical Center, Schneider Regional Medical Center, and the Waste Management Authority — owe WAPA over $11 million.
Even though WAPA received the funds today to clear its $2.3 million debt owed to Aggreko, the Senate Committee on Budget, Appropriations and Finance still plans to hold a meeting at 10 a.m. tomorrow on St. Thomas to receive testimony from the JFL, SRMC, and WMA.
“There’s still a discussion in regard to exactly how much is owed by our hospitals as well as Waste Management,” Francis said. “The ask originally was for $11 million at that time.”
Senator Donna Frett-Gregory, Committee on Budget, Appropriations and Finance chair, said during the press conference from St. Thomas that she believes it is a matter of critical importance that her committee meets tomorrow to discuss the WAPA matters.
“We don’t have any information as it relates to what the ask is, the monthly fuel cost for WAPA,” she said. “We don’t have any information around WAPA’s current financials.”
Despite being invited to testify during tomorrow’s committee meeting, Management and Budget Director Jenifer O’Neal and Finance Commissioner Kevin McCurdy have declined to attend given the fact the governor declared a state of emergency. Frett-Gregory said it was unfortunate that they will not be participating in the meeting.
“It will impact the discussion because it does not allow us an opportunity to dig deep into what the financials are of this government, and I’m not certain what one has to do with the next,” she said. “I think what’s critical is that the community needs an understanding, a clear picture of what our government finances are.”
Senators will meet during an emergency legislative session at 10 a.m. Thursday on St. Thomas to act on any measures that are required based on the outcome of tomorrow’s committee meeting.
The governor, while announcing his declaration of a state of emergency, said rotational outages began on St. Croix last Tuesday because WAPA failed to pay Aggreko.
“In the St. Croix District, Aggreko, the company that leases generators to WAPA, turned off those generators at midnight due to nonpayment,” he said.
Bryan said it is unconscionable that the power was out on St. Croix due to nonpayment of the Aggreko bill. He said he intervened by reaching out to Aggreko’s area manager to get the power restored the same day.
“But getting the power on in St. Croix comes at a price,” he said. “After all, goodwill does not start generators.”
The governor said he committed to ensuring Aggreko received payment by today to prevent future blackouts on St. Croix.
“This is not an initial thing,” he said. “This is months and sometimes years of late payments and negotiating in trying to make sure that Aggreko is whole.”
The governor pointed out that Aggreko has its own responsibilities. He said if the payment was not made to Aggreko by today, St. Croix would, once again, face rotational power outages.
“I’m simply not going to let that happen,” he said. “Not on my watch.”
Senate Majority Leader Kenneth Gittens, while speaking during today’s press conference from the Frits E. Lawaetz Legislative Conference Room on St. Croix, said the territory was given millions upon millions in federal dollars to address WAPA through the Bipartisan Infrastructure Act and hurricane recovery funding. He said the funding under the Coronavirus Aid, Relief, and Economic Security Act that should have been used for health-related matters or first responders was channeled to WAPA by the Bryan-Roach administration.
“And we are told we should be happy that they have been subsidizing WAPA,” Gittens said, questioning why the cost of electricity should be subsidized when Virgin Islanders are already being charged the highest rates in the nation. “Placing blame will not help resolve this issue, but we need to look with clear eyes at what has transpired in recent years. It is high time that we take the bull by the horns. If we are truly to protect the ratepayers of this territory, the administration needs to be more aggressive and stop protecting its friends and start protecting the people of the Virgin Islands.”
