WAPA says monthly deficit narrowed to $2–3M but warns of $188M debt and $375M funding gap

The Virgin Islands Water and Power Authority (WAPA) told a Senate committee on March 24 that while its monthly operating deficit has fallen from about $8 million in March 2024 to roughly $2–3 million, the utility still faces large unpaid bills, heavy long‑term debt and a need for substantial capital to fix deferred maintenance.

“The Water and Power Authority remains in a fiscally challenged position,” WAPA Executive Director and CEO Carl Knight told members of the Committee on Government Operations, Veterans Affairs and Consumer Protection. He said the authority now carries roughly $101.7 million in past‑due accounts payable and about $188 million in long‑term debt, with deferred maintenance on generating assets estimated at about $27 million.

Knight said the authority’s operating revenues come only from monthly charges for electricity and water and that the utility has not substantially raised electric rates in nearly six years. Residential electric rates were cited at about 43.4¢ per kilowatt‑hour, up only slightly since 2019. Closing the operating deficit entirely through rates would likely require increases on the order of eight cents per kilowatt‑hour — an outcome WAPA has tried to avoid because of the economic consequences if rates exceed 50¢/kWh.

WAPA’s strategy has been to reduce operating expense and pursue projects that lower fuel and operating costs. Knight said steps include a new two‑year fuel…