WAPA tells senators FY2026 shortfall about $9.6M; urges legislative fixes and new fuel contracts

The Virgin Islands Water and Power Authority (WAPA) told the Senate Committee on Budget, Appropriations and Finance on Aug. 11 that its proposed FY2026 operating plan projects an approximate $9.6 million shortfall under current rate recoveries and fuel accounting practices.

Chief Executive Officer Carl Knight testified the authority’s FY2026 budget anticipates roughly $320.8M in revenue requirements, with fuel projected at about $141M (43% of expected revenues) and operating expenses (excluding personnel and fuel) at about $104M. WAPA reported it reduced total fuel costs from more than $165M in FY2025 to an expected $141M for FY2026 because of increased solar and storage production and a lower spot fuel price environment.

Why it matters: WAPA said the shortfall is largely the result of its LIAC (fuel adjustment) collections not fully matching actual fuel costs and transportation fees. The public‑utility regulator has allowed WAPA to include only $0.33/gallon for LPG transportation inside the LIAC while WAPA’s actual LPG transport costs have been closer to $0.59/gallon. Over several fiscal years those mismatches have produced a cumulative fuel shortfall WAPA puts at roughly $147M for 2021–2025.

What WAPA presented and requested - FY2026 shortfall: CEO Carl Knight said the authority…