WAPA to Borrow Anot...
 
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WAPA to Borrow Another $85 Million

 
caribstx
(@caribstx)
Trusted Member

Here is an interesting article in the WSJ about our favorite electric utility:

https://www.wsj.com/articles/u-s-virgin-islands-utility-to-test-bond-market-1494513445

"WAPA expects to privately sell up to $85 million in debt by next month, according to people familiar with the matter. The sale, managed by Atlanta-based broker-dealer IFS Securities Inc., is open to select investors and won’t carry a rating from the major credit rating firms, these people said.

Who in their right mind would lend the GVI or WAPA another cent?

This loan must be costing WAPA a fortune in interest!

But, why should WAPA care...we're the one's who will be paying.

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Topic starter Posted : May 11, 2017 8:27 pm
gringojj
(@gringojj)
Advanced Member

Wow. Just wow.

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Posted : May 11, 2017 9:11 pm
sjointer
(@sjointer)
Advanced Member

So, I want to make sure of this: WAPA is the "semi-private" government organization in charge of electricity distribution in USVI, right? And, further, from what I've read, WAPA charges high rates (highest in the U.S., according to a few comparisons) for electricity.

If I'm right about those assumptions, my question is, does WAPA publish the number of people that have turned to alternative electricity generation (solar/UV, heat transfer, water powered)? Do people need permission from WAPA to explore alternative energy sources (I thought I read that somewhere too)?

I'd ask what WAPA's credit rating is, but since they are trying to float bonds (for all intents and purposes) with no credit rating, the question is: does WAPA even have a credit rating? I guess I could check that through Ameritrade, but I'd think someone on this board would know.

I couldn't find it on Ameritrade, but that's likely because I don't know what exactly WAPA means...what does WAPA mean?

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Posted : May 11, 2017 9:58 pm
singlefin
(@singlefin)
Trusted Member

I would imagine $32 million needs to be used to payoff the VITROL natural gas bill right away.
So that leaves $53 million.

Subtract all the unpaid local government and hospital electric bills....

What exactly does that leave for infrastructure maintenance or upgrades???

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Posted : May 11, 2017 10:02 pm
singlefin
(@singlefin)
Trusted Member

WAPA : Water And Power Authority

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Posted : May 11, 2017 10:04 pm
JohnnyU
(@JohnnyU)
Advanced Member

The have a credit rating and it's Junk (Caa1)

Someone trying to place it doesn't meant there's a market for the Bonds. I don't see anyone evaluating the bonds are going to put much weight on the open receivables

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Posted : May 11, 2017 10:44 pm
Jumbie
(@ohiojumbie-2)
Trusted Member

So, I want to make sure of this: WAPA is the "semi-private" government organization in charge of electricity distribution in USVI, right? And, further, from what I've read, WAPA charges high rates (highest in the U.S., according to a few comparisons) for electricity.

If I'm right about those assumptions, my question is, does WAPA publish the number of people that have turned to alternative electricity generation (solar/UV, heat transfer, water powered)? Do people need permission from WAPA to explore alternative energy sources (I thought I read that somewhere too)

I'd ask what WAPA's credit rating is, but since they are trying to float bonds (for all intents and purposes) with no credit rating, the question is: does WAPA even have a credit rating? I guess I could check that through Ameritrade, but I'd think someone on this board would know.

I couldn't find it on Ameritrade, but that's likely because I don't know what exactly WAPA means...what does WAPA mean?

To my knowledge WAPA does not publish a list or number of people on alternative energy.
People do not need permission to seek alternative engery sources.
WAPA's bond rating is rated as junk -- and as for their credit rating not sure what it is but it's definitely not that good.

WAPA is an acronym for -- Water and Power Authority. In addition to supplying electric they also supply water to selected areas on St Croix and St Thomas (Chrisitiansted & Charlotte Amalie.

They are owned soley by the Government of the U.S. Virgin Islands

As for the electric rates they charge --current effective rate is (includes all 7 line item charges on the bill) $.3632 per kwh. Comparing that to what I pay in NE Ohio of between $.10 - $.11/kwh it is more than 3x,

Jumbie

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Posted : May 11, 2017 10:48 pm
Scubadoo
(@Scubadoo)
Trusted Member

In addition to supplying electric they also supply water to selected areas on St Croix and St Thomas (Chrisitiansted & Charlotte Amalie.

They are owned soley by the Government of the U.S. Virgin Islands

As for the electric rates they charge --current effective rate is (includes all 7 line item charges on the bill) $.3632 per kwh. Comparing that to what I pay in NE Ohio of between $.10 - $.11/kwh it is more than 3x,

Jumbie

and let's not forget the sh@!#!! they collect in the sewers from those selected areas as well which usually stays out of the sea.

Current Residential rate is $0.3234/kwh for first 250kwh per bill and $0.3496 thereafter. I imagine HI, PR, GUAM have high rates as well, wonder how they compare to ours.

Seems like WAPA is looking for a loan shark.

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Posted : May 11, 2017 11:57 pm
stjohnjulie
(@stjohnjulie)
Trusted Member

Here is a nice little table: Electric Rates Looks like Guam is about 26.42¢ kWh with a flat $15 monthly fee on top of that. (that info cam off of Guam Power Authority website)

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Posted : May 12, 2017 6:37 am
vicanuck
(@vicanuck)
Expert

WAPA : Water And Power Authority

WAPA: Without Any Power Again

Does anyone else have a favorite nickname?

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Posted : May 12, 2017 10:55 am
Scubadoo
(@Scubadoo)
Trusted Member

Here is a nice little table: Electric Rates Looks like Guam is about 26.42¢ kWh with a flat $15 monthly fee on top of that. (that info cam off of Guam Power Authority website)

Hawaii not a whole lot cheaper than WAPA.

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Posted : May 12, 2017 8:50 pm
singlefin
(@singlefin)
Trusted Member

Far to often we're doing comparables.

We're a unique, beautiful, small piece of fairly isolated real estate surrounded by the Caribbean Sea.

We've got a "few" issues ; )

As I keep saying, if it was perfect, if everything made sense, most of us would be unable to afford living here.

"Embrace the Warts."

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Posted : May 12, 2017 10:37 pm
Gumbo
(@Gumbo)
Advanced Member

Far to often we're doing comparables.

We're a unique, beautiful, small piece of fairly isolated real estate surrounded by the Caribbean Sea.

We've got a "few" issues ; )

As I keep saying, if it was perfect, if everything made sense, most of us would be unable to afford living here.

"Embrace the Warts."

STX Reminds me of a small country town, like many I've seen in different parts of the states. Except it has incredible waterfront. Really for some people it has everything.

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Posted : May 13, 2017 7:26 pm
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