Public Services Commission warns unpaid utility assessments threaten rate investigations and operations

The Virgin Islands Public Services Commission told the Legislature’s Budget, Appropriations and Finance Committee on June 26 that unpaid assessments from major utilities have eroded the commission’s reserve and constrained its ability to carry out multi-island rate investigations.

The commission’s executive director, Sandra Satori, said the agency’s FY2026 budget request — about $2.08 million — supports core regulatory activities including rate investigations, consumer complaint resolution and technical oversight of water, electric, solid waste, wastewater and telecommunications utilities. “My name is Sandra Satori, executive director of the Virgin Islands Public Services Commission,” Satori said as she opened the presentation.

Satori and PSC staff told the committee the commission is funded by statutory assessments on the utilities it regulates, not by general‑fund appropriations. The assessment is calculated annually and deposited into a PSC revolving fund. Satori said that legal authority and the commission’s duties are grounded in the Virgin Islands Code and related statutes governing electric, water and telecom regulation.

But the PSC said its ability to use external consultants and hearing examiners has been curtailed because the Waste Management Authority and the Water and Power Authority have been delinquent in paying their required assessments. The executive director said the commission requested a court dismiss what it called a meritless legal challenge by Waste Management and expects WAPA to resume payments now that it has recovered some cash flow. “We do not receive general fund appropriations. Instead, it is funded exclusively by assessments of the utilities that it regulates,” Satori told senators.

Accounts staff gave the committee specific figures during questioning: one PSC accounts officer said outstanding vendor payments were about $31,645.41 and later told the committee the PSC had an outstanding balance of roughly $1.66 million tied to unpaid assessments across several fiscal years. Committee members later cited WAPA delinquency figures of about $2.4 million for recent years; the PSC staff provided those figures to the record during the hearing. The PSC said its prior reserve — accumulated when assessments were paid on time — was largely depleted by prolonged nonpayment and that commission operations had been sustained recently with allotments and careful management.

PSC general counsel Boyd Spring and staff described the agency’s docket activity and rate‑case schedule. Staff reported several open dockets involving the Water and Power Authority and Waste Management, some without hearing examiners assigned yet, and said public hearings would be scheduled across islands. The PSC emphasized that any utility rate proposal such as a new residential solid‑waste fee must follow the rate‑payer bill of rights, including specific public‑notice steps.

Committee members pressed the commission on contingency plans. The PSC said it is exploring options such as establishing a separate bank account or reserve mechanism (the commission said the idea has been discussed with the Department of Finance) but noted legal, cost and logistics hurdles. The PSC also told senators it is staggering the start of multi‑year rate investigations to spread workload and avoid overburdening staff.

The PSC and committee members repeatedly flagged the effect of litigation. The PSC has asked courts to dismiss Waste Management’s appeal related to unpaid assessments and expects additional litigation from WAPA on some rate orders. While the commission said it covers in‑house legal work, staff acknowledged litigation and appeals divert staff time and resources from regulatory work and increase costs for the territory.

The PSC asked the committee to approve the FY2026 request so it can continue investigations, public outreach, complaint resolution and other regulatory duties territory‑wide. The commission also asked the Legislature to consider statutory fixes that would reduce the risk that the PSC’s funding is undermined when a regulated utility with public ties delays or refuses to pay assessments.

The commission’s presentation and committee Q&A included specific bookkeeping figures and summary dockets; PSC staff said they would provide follow‑up documents to the committee on debt and unpaid assessment details, and senators requested more documentation on how the PSC’s revolving fund and prior reserve were used.