ASPA: The beat goes on…
The Electric Division continues to be the revenue maker for the American Samoa Power Authority with $34.25 million collected in the second quarter of fiscal year 2012, according to the ASPA FY 2012 second quarter performance report — which covered Jan. 1-Mar. 31, 2012.
ASPA’s FY2012 total budget is $118.47 million, according to the report. However, the Fono approved last year around $30 million for the first four months of the fiscal and a supplemental budget of about $60 million for Feb. 1- July 31, was endorsed by lawmakers but vetoed by the governor.
At the center of the whole debate is the ASPA’s board authority giving the final approval of ASPA’s annual budget and this remains an issue of contention between ASPA and Fono as the current fiscal year ends Sept. 30th and the new fiscal year 2013 budget is among the main issues for lawmakers to debate and approve when the 4th session convenes next week.
According to the second quarter report, total actual operating and grant revenues ending Mar. 31, 2012 is $64.14 million. This total consists of operating revenues of $55.78 million and grants of $8.35 million — a total variance of $4.90 million (or 8.3%) more than revenue projections.
Of the total revenues, $34.25 million represents Electric division; $4.70 million for Water division; $2.44 million for Wastewater; $1.49 million in Solid Waste; and $21.24 million for Fuel division, the report points out.
Total expenses for second quarter, came to $63.47 million, where $55.11 million was spent on operations and $8.35 million spend on grant projects, the report says. Of the total expenses $34.25 million was for electric division; $5.09 million for water; $2.06 million for wastewater; $1.19 million in solid waste and $20.85 million for Fuel and Marketing division.
According to ASPA, the authority spent about $4.90 million more than budgeted due to the high fuel price.
Other expenses: personnel costs $4.68 million; materials and supplies $42.67 million; travel $48,254; contractual service $6.89 million; equipment $2.90 million and all others category at $6.26 million.
“ASPA continues to struggle with its cash flow due to the aging of receivables from our customers while quality of service must be delivered on a daily basis for our people,” the report points out. “We recognize that our entire community is suffering from the effects of policy changes in the global economy as well as reduction of funding with strict regulatory compliance/environmental issues.”
ASPA also states that it “struggles to continue operations in the face of rebuilding costs and the 10% match required” by the Federal Emergency Management Agency (ASPA). “In response.... ASPA has not made some of the budget purchases as the actual cash flows do not support the project completion,” the report claims.
Major costs faced by ASPA is the rebuilding of the new Satala Power Plant, to replace the one destroyed by the 2009 tsunami.
According to the report, the accounts receivables continue to increase to the amount of $8.3 million for the American Samoa Government, not including other class of customers, commercial and residential.
The ASPA 1st quarter performance report for FY 2012 had ASG receivables at $7.5 Million. ASPA has noted since the January released report that ASG has made some payments on its bill.
Current billing for June shows ASPA charging households .4335¢ per kilowatt, with May billing at .4251¢, while April billing was at .4222¢ per kilowatt.
Samoa News has reported that the ASG Office of Petroleum Management noted for March the new maximum allowable price (MAP) or wholesale prices for diesel fuel (used by ASPA boilers/ generators) was $3.47; for April, it rose to $3.90; for May, it rose again to $4.07 per gallon; while for June, boilers/generators diesel fuel has dropped to $3.86 per gallon.
ASPA has said bills received by consumers reflect consumption for the month before, meaning June’s bill is for May, May for April, etc. It has also said it averages monthly prices of fuel, which now includes the higher priced Ultra Low Sulfur Diesel (ULSD) which is used for the eleven generators at the American Samoa Power Authority’s temporary power generation system (TPGS) in Satala.