The Water and Power Authority’s governing board voted Thursday to approve a new liquefied petroleum gas provider.
In a narrow 3-2 vote, the board chose to sign a contract with San Juan-based Empire Gas Company, replacing the territory’s previous fuel supplier, Switzerland-based Vitol.
WAPA said several companies responding to the request for proposals to be the new provider did not fully meet the utility’s needs, so it began direct negotiations with companies to get a fuel supplier by Sept. 1.
Empire Gas Company is Puerto Rico’s largest propane provider and the 10th largest in the United States, WAPA CEO Karl Knight said at the board meeting. The company currently provides propane to Diageo’s St. Croix operations. The contract making Empire WAPA’s propane provider would be for two years with a potential one-year extension.
Board members Hubert Turnbull, Juanita Young, and Cheryl Boynes-Jackson voted for the contract.
New Board Chair Maurice Muia asked that a vote on the contract be delayed while the board gathered more information. That motion failed 3-2, with only Muia and V.I. Energy Office Director Kyle Fleming voting to delay.
Exact details of the contract had not yet been released by press time.
Muia, unanimously voted the new WAPA board chair in June, opened Thursday’s meeting by advocating for greater efficiency, accountability, and reliability. He said he hoped the board could launch a new era where Virgin Islanders could depend on the territory’s primary utility.
“I want the governing board to be the conduit to re-instill faith in the authority, its people, our products, and services,” Muia said. “The governing board and I understand the challenges that you face when it comes to the costs of living in the Virgin Islands. The governing board’s intent is to strategically envision a new WAPA with the management team, one which wholly benefits the people of the Virgin Islands.”
Muia outlined several key issues for the board to address.
“We must get our fuel right. This is our largest expense at the authority and the biggest burden to our customers,” he said.
He also alluded to personnel changes, without elaborating.
“We need to take a serious look at persons in the workforce at the authority. Optimal resource allocation, plant and substation operations, safety, customer service, vegetation management and other critical teams must strategically meet the needs of where we are today. In return, WAPA’s electric and water services must become consistent, affordable and beneficial to the Virgin Islands community,” Muia said. “We must tackle the outstanding obligations to vendors and others in the community.”
Starting late, the governing board was already 18 minutes behind schedule when Muia spoke. Board members quickly voted to go to executive session to discuss legal matters. Muia estimated the private conference would last until 11:15 a.m. At 11:30, the authority sent an email saying the executive session was ending soon. It went far longer. More than 20 remote participants stood by in the Microsoft Teams waiting room for nearly another two hours before the meeting resumed.
“I sincerely apologize for the length of time that it took but it was a good discussion that benefited the authority,” Muia said when the meeting resumed. The meeting would eventually last longer than 4.5 hours.
Lorraine Kelly, WAPA’s chief financial officer, presented an electric and water budget for fiscal year 2026, which started July 1. Water revenue was estimated at just more than $38 million, with roughly $4 million left over. The electrical revenue was estimated at $287.2 million, with no profit.
“The fiscal year 2026 budget has increases in revenues for both the water and the electric divisions. In so doing, and the achievements of those additional revenue targets will give us the ability to invest further in some of the repairs and maintenance that has be deferred. No all, but some,” Kelly said.
Some of those additional revenues would be the result of new power and water meters.
“We are acquiring several thousand more,” Kelly said. “That gives us the ability to have greater accuracy in billing, reduction in estimated billings that have plagued us in the past.”
She said there were a dozen other smaller measures that could help increase efficiency by roughly three percent.
