Guest Opinion by Dwane A. Callwood
I would like to take the opportunity to offer what I perceive to be a viable solution to our current energy crisis, here in the US Virgin Islands. Before I get into the specifics, please allow me to preface my idea with certain acknowledgments. I acknowledge that the energy crisis is by no means limited to the Virgin Islands. However, the fact that we have the third largest refinery in the Western hemisphere located within our borders should put us in a unique position, when you consider that HOVENSA purchases raw crude from Venezuela at vastly reduced prices. I acknowledge that the VI Government has a moral obligation to pay retroactive wages owed to current and past employees. I also acknowledge that what I am about to offer doesn’t negate the need for us to reduce our dependency and consumption of electricity, nor should it reduce our quest for alternative sources of energy. Most of all, I’m admitting that I am not, nor have I ever professed to be, an expert in the Energy Industry. My three-phased, no pun intended, suggestion is based on common sense and simple analysis.
Phase I. (0-24months): Pay the Government’s Outstanding Electric Bills
In lieu of raiding the Insurance Guaranty Fund (which I’d like to think of as our “rainy day” fund) to pay a portion of retroactive wages to 10% of the community, the Government of the Virgin Islands should pay its outstanding WAPA bills. This would translate into a much needed influx of cash to WAPA. Additionally, the most recent increase in the LEAC (approx. 22.5%) could then be rescinded. The rollback of the LEAC would provide the IMMEDIATE relief that ALL segments of the community are yearning for. I’m thinking the outstanding bills can be paid perhaps as a supplemental budget to those indebted agencies and instrumentalities. We always see Supplemental Budgets for everything else. Why not to reduce everybody’s (Government included) LEAC. The remaining balance from the $45 Million earmarked for retro payments can remain in the Insurance Guaranty Fund and used to offset any further, substantiated, requests for an increase in the LEAC until Phase 2 of this plan kicks in.
Phase II. (24-72months): Bring the Martin Marietta Plant Online
On the south shore of St. Croix lies the former Martin Marietta Alumina plant. It is my understanding that within that facility is a coal-burning electric plant capable of generating enough electricity to power the entire island, and then some. I heard a HOVENSA official on a radio program a few months ago indicating that they are very much interested in having the Martin Marietta plant brought back online. From HOVENSA’s standpoint, it is far more profitable for them to sell their oil product on the open markets than it is for them to consume it generating electricity. HOVENSA officials also indicated that WAPA could simultaneously purchase electricity from the Martin Marietta plant at an estimated 30% of what it costs WAPA to generate electricity on its own. The alleged holdup has been the inability of the HOVENSA officials to get representatives of the VI government to the table. Within the Governor’s most recent State of the Territory there was, to his credit, definite indications that this energy crisis is one of his top priorities and that this Administration is committed to leave no stone unturned in their efforts to bring about relief. Therefore, I am assuming that government officials will, in fact, be meeting with this group to at least weigh the viability of the Martin Marietta option. HOVENSA officials have estimated that the plant can be up and fully functional in 18 months. Coal is not the cleanest form of energy on the planet, but it’s currently being used elsewhere and I believe it’s realistic to think that we can live with it for a few years. The savings realized by WAPA on St. Croix would be used to reduce the cost of electricity to ratepayers territory-wide. This is the intermediate solution to carry us to Phase III.
Phase III. (72months and beyond): Alternative Energy
Whether it’s wind farms, underwater thermal energy, solar energy, etc. Hugo Hodge of WAPA has indicated that it will take between 4 to 5 years to bring some other form of energy online. Given the way things work around here, I have allowed for an extra year to get an alternative source of energy in place. Once that more permanent source of energy is in place, the Martin Marietta plant can be taken offline. If it’s viable and not cost prohibitive, the existing facilities can be maintained to serve as backup facilities during disaster recovery, or other times of significant need.
As always, nothing that I recommend is gospel. I’m just calling it as I see it from where I stand. I think that this is in fact a viable solution, as opposed to the number of temporary fixes I’ve heard proposed. Hopefully, it’ll be used as the foundation to be built upon by the “experts”. Best of ALL, for my LOVE of the Virgin Islands I offer it FREE of charge(which is a lot less than $800,000).
Dwane A. Callwood
St. Thomas, VI
February 14th, 2008 at 7:48 am
Mr. Callwood thank you very much for educating us with the various ways and means of alternative engergy methods that would address the energy crisis in which this territory have been face with over the recent years.
A carefully thought out plans like yours can certainly save us the consumers millions of dollars in the long run.
February 14th, 2008 at 11:28 pm
Thank you Mr. Callwood.It would be a good idea to present this plan to the Governor, WAPA. Your plan is well thought out, intelligent and can work.
February 16th, 2008 at 11:36 am
Thank you Mr.Callwood for the vital information. I recently was informed of your web site(2-15-07). You are simply a wealth of knowledge. I sincerely hope the government consider all phases of your plan, especially re-opening Martin Marietta to create a cheaper source of energy production. When time permits surf our website @ http://www.stxclass86.com
At your convenience please be sure to browse our message board and leave a comment if you desire.
Sherman
“Knowledge is Power”
February 19th, 2008 at 11:43 am
Mr. Callwood, thank you for being solution oriented. That is what we need, suggestions on how we can resolve our problems in the community. I like the idea of using the money from the “rainey fund” to help all the people by lowering the LEAC. That would immediately lower our electric bill. However, when that money is used for retro, only a segment of our community will be helped. Don’t get me wrong, I am not saying the retro should not be paid. But we need to address the immediate problem- high electricity cost which is forcing us to live like citizens in third world countries. I can’t use my fan although my house is very hot. I am in darkness most of the time and have almost everything plugged out. This is a poor quality of life. SoI am for some kind of relief, relief for all. Mr. Callwood, did you circulate your plan to the governor, the senators and WAPA officials?
I suggest that you do, if you haven’t already done so.
February 19th, 2008 at 3:57 pm
The Governor would have to extend leadership and ensure WAPA actually uses the money to perform the desperately needed plant maintenance. I have little faith, if any at all, in this new WAPA board. The jury is still out on the new Executive Director.
February 20th, 2008 at 10:50 am
I heard one Senator raise the same issue. His position was that there are major inefficiencies within WAPA, and therefore WAPA would squander the money. I’ve heard several citizens echo that same sentiment. What puzzles me is none of these people seem to have a problem with everyone else paying their WAPA bills. If the government shouldn’t pay pay their bills because the money wouldn’t be used efficiently, why should the rest of us pay our hard-earned money to the same “highlt inefficient WAPA? Don’t get me wrong, I am convinced that there is a lot of fixing to be done at WAPA. However, I don’t feel that any problems at WAPA should result in certain parties being required to pay for services received, while other parties are excused.
February 20th, 2008 at 12:41 pm
I agree with you Dwane and that is why I say the Governor would have to step up to the plate. Based on his governance thus far, I don’t see it happening unless pressure is put on him by WAPA’s customers, especially the commercial customers.
February 21st, 2008 at 11:33 am
Mr. Callwood: you should seriously consider seeking elected office. This is the kind of innovative thinking that’s been absent from our elected leadership for quite some time. Every time we hit a crisis, we have all these proposals that amount to nothing more than temporary fixes. We are hurting for some committed people in leadership positions. Please consider my suggestion.
February 22nd, 2008 at 1:12 am
It sounds like a viable proposal. Mr. Callwood, has it been submitted to the Governor?
Free Speech host, Roger W.Morgan, is always bragging that the Governor is doing a wonderful job. I want to know what makes him come to such conclusion. I have not seen any plan by this Administration. He has no energy plan, no education plan, no crime plan…no plan for anything.
Since the Governor took office, I have not seen improvement in the key areas. I guess his supporters are going to use the same stale point-he needs time to implement his policies. His term will expire before he develops a plan.
This governor has been a great disappointment.He will not get a second chance by me!
April 13th, 2008 at 9:20 am
I was surprised and pleased to see my name mentioned in the review of a suggestion made by Duane A. Callwood. Mr. Callwood’s suggestions have merit and should be considered by all of us with a stake in the future energy needs of our islands.
“Indigenous Virgin Islander” poses the question, “Has it been submitted to the Governor?” That’s a good question. Again, those of us with a vested interest should pursue these valid ideas aggressively. But then, my name was mentioned as having been supportive of our Governor. Make no mistake about it, I am supportive of much of what Governor DeJongh has done since he took office. I believe that what we’re seeing now in terms of arrests and investigations by our police department is an indication that the Governor was serious about getting tough on crime. Much yet needs to be done, but the Governor has made an aggressive start to repairing challenges of the past that took years to create.
“No education plan”? Governor DeJongh nominated Dr. Lynnn Spampinato for the position of Commissioner of Education in the Territory and she was soundly rejected by our senators. Don’t misunderstand me, they are perfectly within their rights in rejecting the nominations made by our Governor, but many feel that their reasons in this case were thinly veiled disguises for a reasons they didn’t reveal. He then came back with a new nomination that apparently better met the needs and desires of those in a position to sanction the nomination. I don’t hear any complaints about his latest nomination. It appears to have been made after much careful and thorough consideration.
I have no reservations about my support for many of the policies of Governor DeJongh and his staff. Are they perfect? No, and we shouldn’t expect them to be. Is he making progress? I believe there is plenty of evidence that he is.
Roger W. Morgan
April 14th, 2008 at 1:25 am
Mr. Morgan, you are so blinded by your bias for the Governor that you continue to fall for the spin from the Governor’s public relations posse. It took the Governor ¾ of a year to submit a nominee for Commissioner of Education and a year to submit a bill for the unnecessary move of the Energy Office from DPNR to the Office of the Governor. Two of the Governor’s priorities during the campaign, education and energy, suddenly weren’t so urgent anymore. And let’s not forget about the rampant lawlessness gripping this territory. Your insensitivity during a recent conversation with a victim of a robbery at a beachside restaurant indicates your head is in the sand. Let’s see if you can answer a few questions:
-Why does Commissioner McCall continue to ignore the offers of assistance from the Virgin Islands Retired Police Organization (VIRPO)?
-Why does Commissioner McCall continue to staff civilian positions with police officers that can be better utilized on the streets?
-Why does the VIPD top brass continue to ignore high crime areas where machine gun fire is almost a nightly occurrence? Take a trip to Hospital Ground (STT).
-What happened to the Governor’s plan to involve churches in his crime fighting plan?
-During his confirmation hearing, Commissioner McCall told the VI Legislature he could get control of the crime situation in 1 year. Considering he was Assistant Commissioner of Police under the Turnbull Administration, as close to running the department as you can get, why do we continue to have such a high level of lawlessness around here?
-When last have you heard about successful sting operations targeting known high crime areas?
And for another round of questions:
-Why is there a new fleet of SUVs littering the various government agencies?
-Why is Governor deJongh’s Senior Policy Advisor the same head of Fiscal Recovery under the Turnbull Administration? This is, after all, the same Nathan Simmonds who told us there was a surplus which was used as justification for passage of Act 6905.
-Why wasn’t the Director of the VI Lottery, Paul Flemming (VI Restore Hope), fired after the scathing federal audit of that agency last year? He actually resigned a month or so ago.
-Do you believe Cecil Benjamin was the most qualified candidate for the position of Executive Assistant to the Commissioner of Education? How about Pedro Pete Encarnacion as Administrator? What about former Senator Roosevelt “Act 6905 supporter” David as a WICO board member? Let’s not forget former Commissioner Marc Biggs as Assistant to Superintendent Garry Molloy? Should I continue?
It is clear to most Virgin Islanders that the deJongh Administration and the 27th Legislature have failed to improve the quality of life for Virgin Islanders. WAPA, crime and education remain our top 3 crises as they were under the Turnbull administration. Where is the “plenty of evidence” that the governor is making progress?
Ps. Here’s a few reminders on those campaign promises:
http://cruciansinfocus.com/category/political-rewind/