Dear Editor,

Let’s take a look at the numbers: over the past 15 months the Bryan administration has given the V.I. Water and Power Authority (WAPA) more than a quarter of a billion dollars in bailouts, subsidies and funding commitments. And in spite of that unprecedented level of financial support, WAPA reliability has deteriorated to an all-time low, leaving many Virgin Islanders sweltering without power, in intense summer heat.

Starting in March 2022, Gov. Albert Bryan Jr. has given WAPA approximately $6 million per month for “fuel subsidies” paid for out of ARPA (American Recovery Plan Act) pandemic relief funds. The most recently reported total for these monthly payments was $109 million. The use of ARPA funds to subsidize a ratepayer-funded autonomous agency is questionable at best, and may be contrary to the approved uses of ARPA funding that was intended for health care, education, essential workers, and support of tax-funded government agencies.

In December 2022, the Bryan administration, in conjunction with WAPA, negotiated a so-called “buy-out agreement” with VITOL, the supplier of propane infrastructure and propane fuel to WAPA. The terms of this agreement, which WAPA has refused to provide to the Legislature, require payment of $145 million to complete the transfer of the propane infrastructure to WAPA. This payment, together with amounts already paid to VITOL, will result in a final price tag of over $200 million for a project that was supposed to cost less than $90 million.

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Last month Governor Bryan submitted legislation to the 35th Legislature requesting a line of credit of $150 million to use for whatever purpose he wants, including advancing money to WAPA to pay for the VITOL agreement. Ultimately, after much political theater, the Legislature authorized a $100 million, three-year line of credit at an interest rate of up to 9% per year.

But when Bryan was unable to secure a commercial line of credit prior to the VITOL payment deadline, he and his finance team apparently decided to pay VITOL by using money in the Virgin Islands treasury (General Fund) without any further authorization from the Legislature. OMB Director Jenifer O’Neal testified that the Legislature’s bill, which approved borrowing through a commercial line of credit was, in her opinion, adequate justification to take money from the general fund, money that was appropriated for other purposes. She was wrong.

The use of public funds without authorization from the Legislature is expressly prohibited under the Revised Organic Act. Section 3, the “Bill of Rights” states that “No money shall be paid out of the Virgin Islands treasury except in accordance with an Act of Congress or money bill of the Legislature.”

During the Senate hearings for the line of credit, WAPA testified that it would (at some point) apply for a grant from HUD to cover the $145 million VITOL buy-out and to repay the $45 million taken, without authorization, from the V.I. treasury. According to testimony from OMB the grant application has not yet been submitted, but is expected to be submitted later.

Although HUD does provide funding for rural electrification programs, a federal grant of monies which would be used to pay off a 10-year-old contract with an international organization that has engaged in illegal business practices in multiple jurisdictions is by no means guaranteed (see https://tinyurl.com/vitol). But even without any guarantee from WAPA, and without a grant application even being made, Governor Bryan asked for the line of credit, the Legislature approved it, and the people of the Virgin Islands are now out $45 million without any sure way to recover the money that was taken, without authorization, from the V.I. treasury.

The next installment of the VITOL buy-out, amounting to $100 million, will be due sometime in the next few months. If past history is any indicator of the future, Governor Bryan will once again look for a way to beg, borrow or steal those funds to bail out WAPA and complete the payment of the VITOL ransom demand, regardless of whether or not WAPA has received (or even applied for) a HUD grant.

The total funding provided to WAPA — $109 million in ARPA subsidies, $45 million in the VITOL first installment, and $100 million expected in the VITOL final installment — adds up to over $250 million, over a quarter of a billion dollars of our money.

If we are to learn from past mistakes and improve our prospects for a brighter future, it is prudent to ask the question: What could have and should have been done with that amount of money?

Consider the basic power requirements of a typical small home in the Virgin Islands — a refrigerator, a couple ceiling fans, a cistern pump, some LED lighting, and a small air conditioner. All of this will consume around 10 kilowatt hours (kwh) per day, or 300 kwh per month.

A basic solar power system capable of running this home could be purchased, delivered, and installed for well under $15,000.

So, for the $150 million in bailout money already paid to WAPA, the GVI could have installed basic solar power on 10,000 homes, providing essential electrical power to virtually every Virgin Islands senior citizen. And if the GVI provides the next $100 million in VITOL funding, this could fund solar power for another couple thousand homes.

And, in the course of this wide-scale solar conversion we could have trained a workforce of 100 to 200 young Virgin Islands solar installers across the territory. The recipients of these solar power systems would see a virtual elimination of monthly WAPA bills, providing a monthly financial benefit allowing for more income to be spent on food, medicine, and quality of life.

Unfortunately, the vision of our political leadership rarely extends beyond the next election cycle. Making long-term strategic decisions that benefit the future of the Virgin Islands does not seem to be in the play-book of the current political elite. But if we don’t learn from the mistakes of the past, we are destined to repeat them in the future. Such has been the story with WAPA.

We can do better. We must do better.

— David Silverman, St. John