The head of the Virgin Islands Water and Power Authority (WAPA), Karl Knight, informed the authority’s board on Thursday that all four of the recently commissioned Wartsila generators are now operational, despite earlier technical issues.
However, Knight clarified that the generators are currently running on light fuel oil (LFO) instead of liquefied petroleum gas (LPG). He explained that this switch to LFO has provided the team with an opportunity to evaluate the operational impacts of using LPG, which he suspects is linked to the issues experienced since the generators’ commissioning.
“Operating on LFO has allowed us to assess what the operational impacts are when we eventually switch to LPG,” Knight said. “We believe the challenges we’ve faced are primarily due to the generators running on LPG.”
Knight added that Wartsila’s technical team is on-site to address the issues, and an expert from the manufacturer of WAPA’s fuel pumps has also been brought in. He mentioned that he recently met with Wartsila’s corporate team and is confident they are committed to resolving the problems permanently.
“I am convinced that Wartsila understands the situation and is working hard to fix the issues and ensure the units are fully operational,” Knight said.
In addition to the generator update, Knight’s presentation followed a discussion with Willis Towers Watson, the insurance brokerage handling WAPA’s property insurance. The board approved a one-year renewal of the utility’s $10 million property insurance policy at a cost of $2.5 million.
The meeting began with a closed executive session to discuss legal and personnel matters, though no decisions were made.
The board also approved a three-month, no-cost extension to the contract with Kami Metals for oil cleanup work on St. Thomas. This follows the company’s previous work at the Randolph Harley Power Plant and the Lindbergh Bay area after an oil spill. WAPA’s Environmental Affairs Manager, Maxwell George, explained that the extension will keep Kami Metals available should the U.S. Coast Guard request additional work related to the spill.
“We don’t expect further work, but if the Coast Guard requests anything else, the extension will allow us to submit those costs to the insurance for reimbursement,” George said.
Additionally, the board approved an extension to the contract with the Maryland-based accounting firm BDO for auditing services. The board also discussed a potential increase in the contract with consulting firm Ernst & Young, from $195,000 to $250,000 per month. WAPA’s Chief Financial Officer, Lorraine Kelly, noted that these services could be reimbursed by the Federal Emergency Management Agency (FEMA). The board decided to postpone a decision on the contract increase until they receive a revised contract for review.
