HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.crs/govciyp0001 and id is 1 raw text is:
Researh Sevice
Power Generation and Electric Reliability in
the U.S. Virgin Islands
March 16, 2020
Two and a half years after Hurricanes Irma and Maria damaged 80% to 90% of the power transmission
and distribution systems across the U.S. Virgin Islands (USVI), financial and infrastructure issues
continue to challenge the U.S. Virgin Islands Water and Power Authority (WAPA). A combination of
infrastructure needs and cash flow challenges has impacted electricity rates. As of February 1, 2020,
electricity rates were approximately $0.40 per kilowatt-hour (kWh) for residential customers (for the first
250 kWh) and approximately $0.47/kWh for commercial customers. In 2017, prior to the hurricanes,
electricity rates were above $0.32/kWh. In comparison, the U.S. average price of electricity in December
2019 was approximately $0.1 3/kWh for residential customers and $0.1 0/kWh for commercial customers.
In addition, cash flow challenges limit WAPA's ability to improve resiliency and operate reliably.
According to the U.S. Virgin Islands Disaster Recovery Action Plan, which proposes programs to address
the USVI's unmet needs across various sectors, the energy sector infrastructure needs stemming from the
hurricanes totaled nearly $2.3 billion. The Bipartisan Budget Act of 2018 (P.L. 115-123) appropriated
additional $28 billion in Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to
the most impacted and distressed areas affected by presidentially declared disasters occurring between
2015 and 2017, directed the Department of Housing and Urban Development (HUD) to allocate at least
$12 billion for mitigation activities among those CDBG-DR grantees, and included a $2 billion CDBG-
DR appropriation to provide enhanced or improved electrical power systems for Puerto Rico and the
USVI. USVI's Action Plan-approved, with fiscal controls, by HUD in March 2019-details how USVI
would use their funds. HUD allocated $67.7 million (approximately 3%) to the USVI for electric power
systems. Governor Bryan reportedly asked HUD in April 2019 to acknowledge that the Virgin Islands
needs at least $350 million of these funds to make a meaningful impact in strengthening the grid and
lowering the high cost of electricity in the Virgin Islands. On September 16, 2019, HUD allocated $774
million in mitigation funds (CDBG-MIT funds) to the USVI; however, HUD announced that
[T]he grantee is prohibited from using CDBG-MIT funds for mitigation activities to reduce the risk
of disaster related damage to electric power systems until after HUD publishes the Federal Register
notice governing the use of the $2 billion for enhanced or improved electrical power systems. This
limitation includes a prohibition on the use of CDBG-MIT funds for mitigation activities carried out
to meet the matching requirement, share, or contribution for any Federally-funded project that is
Congressional Research Service
https://crsreports.congress.gov
IN11242
CRS NS GHT
Prepred For Merubers and
Co rm ttees of Conqress ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------](ViewImageLocal?handle=hein.crs/govciyp0001&div=1&collection=&method=preview&ext=.png&size=3)