CHRISTIANSTED — During an appearance on “Analyze This” with Neville James on WTJX-FM on Tuesday, Governor Albert Bryan detailed his plan to solve the disagreement between VITOL and the V.I. Water and Power Authority by using the $150 million line of credit that he called to 35th Legislature into Special Session to consider.
The Special Session about Bryan’s proposed legislation is scheduled to take place at 10 a.m. today.
The governor said that the administration has brokered an agreement between VITOL and WAPA, and some of the line of credit he is requesting will be used to pay the utility’s debt to the propane supplier, which also will allow additional connections to the propane system WAPA currently uses.
Bryan also explained that the federal expenditures from the line of credit are reimbursable through federal recovery funds.
Although specifics of the agreement between WAPA and VITOL remain confidential, Bryan said he will use the line of credit to pay VITOL $45 million within the next 45 days toward the debt WAPA owes to the propane supplier.
In his transmittal letter to Senate President Novelle Francis calling the Legislature into Special Session, Bryan said the line of credit also would be used to meet the federal government’s local matching requirements for a number of recovery projects, as well as for normal business operations of the Government of the Virgin Islands.
During the radio interview, the chief executive also said that stabilizing WAPA is a primary objective of his second term in office.
Vitol Group won a five-year contract to supply propane to the U.S. Virgin Islands, making the global commodity trader the primary provider of the territory’s energy supplies nearly 10 years ago.
The USVI has been wrestling with higher electricity costs since the 2012 closure of the 350,000 barrel per day refinery on St. Croix, the largest of the territory’s islands.
Since then, the U.S. dependency has mainly relied on imported crude and fuel oil to run two generators at the refinery that supply power to the islands.
“Propane is the best near-term option to significantly reduce the cost of fuel for power generation in the territory,” Former Governor John de Jongh said in July 2013.
Bryan was the Labor Commissioner under former Governor de Jongh.