U.S. Virgin Islands Gov. Albert Bryan Jr. vetoed bills that would have given the Public Service Commission additional control over the financially troubled Water and Power Authority and would have changed the utility's board membership.
Bryan signed a bill that will institute qualification requirements for the PSC and will change the quorum numbers.
The islands’ legislature had approved the first two bills in early May and the third bill on May 19. Bryant took his actions Thursday.
As of Dec. 31, WAPA had $190 million of electrical system revenue bonds and unamortized bond premiums and a total of $1.143 billion of liabilities, according to its unaudited financial statement. The senior electrical system bonds are rated Caa2 by Moody’s Investors Service and CCC by Fitch Ratings.
One of the bills vetoed would have established the PSC as a semi-autonomous agency and required WAPA to hire a turnaround company. Bryan said the bill went beyond enhancing the PSC regulatory functions and gave it and the legislature the authority to run WAPA and other authorities, in violation of the separation of powers doctrine.
“In doing so, the legislature has again intruded into the supervisory and decision-making powers of the executive branch and violated several federal statutes,” he said in a memo to Senate President Donna Frett-Gregory. “The most fatal component of the bill is the inclusion of the directives that WAPA must hire a turnaround management company, implement its recommendations and comply with its turnaround report.”
The bill would require additional WAPA funding, but does not provide it, Bryan said.
Bryan also vetoed a bill 34-0026,which he said was “solely” the legislature’s attempt to remove several members he appointed from WAPA’s board, in violation of the islands’ Revised Organic Act, which serves as its local government constitution.
“While this measure is motivated by great intentions to address the vexing problems of WAPA, it does nothing to improve the efficiency, reliability and affordability of the services provided by the Water and Power Authority,” Bryan said to Frett-Gregory.
As for the bill he signed, Bryan said, it "was properly drafted to enable the commission to function better, with fewer member seats to fill and a more realistic number to establish a quorum while not attempting to remove the governor’s authority and obligations pursuant to section 11 of the Revised Organic Act. The addition of the conflict-of-interest sections to this bill are commendable and in the best interest of the people of the territory.”
The Bond Buyer contacted some sponsors of the vetoed bills and they did not immediately respond to a request for comment.
