Senator Ray Fonseca announced today that he is formally proposing either a Chapter 9 insolvency proceeding to restructure the debt and operations, or a federal takeover of the Virgin Islands Water and Power Authority’s St. Thomas operations, citing years of mismanagement, systemic failures, and ongoing hardship inflicted on residents and businesses throughout the territory.
“There is no end in sight to the pain and suffering our community continues to endure,” said Senator Fonseca. “The people of the Virgin Islands deserve reliable, affordable, and transparent utility service — and after decades of neglect, it’s clear that WAPA, even with substantial assistance from the Government of the Virgin Islands, still needs additional resources and technical assistance.”
According to Senator Fonseca: WAPA’s financial, operational, and customer service conditions has reached a red line:
• The utility owes vendors approximately $400 million, with total liabilities exceeding $1 billion – WAPA may need to seek chapter 9 insolvency.
• Major systems across the board are failing, including power generation, transmission, and billing.
• Fuel costs remain uncompetitive, while solar and emergency capacity are inadequate.
• Management inefficiencies, poor maintenance practices, and frequent equipment failures continue to cripple daily
operations. Due to deferred maintenance, WAPA requires an estimated $27 million to fully maintain its infrastructure and equipment.
• Customer service remains poor, with inaccurate meter readings and billing errors eroding public trust.
• Vendors are not being paid on time, resulting in inventory shortages and service disruptions.
• WAPA’s bond rating has plummeted, reflecting a loss of financial credibility and long-term viability.
• Community confidence is at an all-time low.
Senator Fonseca emphasized that Chapter 9 restructuring and federal intervention are a viable path to restoring stability, modernizing the system, and rebuilding public trust.
“The people of St. Thomas have endured blackouts, inflated bills, and broken promises for too long,” Fonseca stated. “It’s time for leaders to make a definitive decision — to stabilize operations, safeguard federal investments, and ensure accountability at every level.”
“This is about restoring dignity, fairness, and competence to one of the most essential public services in our Territory,” Fonseca concluded. “Our residents deserve light, not excuses.”
For more information, please contact the Office of Senator Ray Fonseca at 340-693-3577 or by email at
SenatorRayFonseca@legvi.org
St. Croix Source
Legislature Corner
