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ASPA audit report for FY2021 shows decrease in electric revenue

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This was mainly due to lower fuel prices, equaling lower fuel surcharge
Joyetter@samoanews.com

Pago Pago, AMERICAN SAMOA — Revenue collected by the American Samoa Power Authority decreased by $2.2 million in Financial Year 2021, compared to 2020, mainly due to the drop in the fuel surcharge in the electric rates caused by lower fuel prices.

The Audit report for ASPA for the financial year, ending Sept. 30, 2021 was endorsed by the Moss Adams Independent Audit on April 7, 2022.

The 58-page Audit report obtained by Samoa News indicated that $63.5 million was collected in FY 2021 versus $65.94 million in the previous year.

There was also a loss of $1.5 million stipulated under three services — water services in the amount of $422,268; wastewater $1.08 million and $3,318 under others.

The report says that sales of electricity and water are recorded as billed to customers on a monthly billing cycle basis. For electricity billings, ASPA factors a variable fuel surcharge into its monthly billings to recover the variable costs of fuel.

The total assets increased by $19.3 million in fiscal year 2021.

 “The increase is primarily due to the increase of utility plant of $16.0 million and an increase of cash and cash equivalents of $2.9 million.

“Total local operating revenues decreased by $2.2 million from the previous year, mainly due to the drop in the fuel surcharge in the electric rates caused by lower fuel prices, which averaged $2.38 per gallon.”

The report says the decrease was attributed mainly to the decrease of Operating and Maintenance expenses, such as the replacement of old vehicles and equipment contributing to lower repair and maintenance costs in 2021.

 “Net income before capital grants was $467 thousand in FY2021 compared to $1.5 million in FY2020.

“Federal capital grants of $19.8 million were recorded for USEPA, FEMA and DOI funded projects for the year ended September 30, 2021.”

The unrestricted current assets increased by $3.7 million.

“Unrestricted current assets are those assets that mature in less than a year.

 “The change is primarily due to an increase in cash and cash equivalents of $2.9 million, materials and supplies of $712 thousand, prepaid expenses of $732 thousand, offset by a decrease in accounts receivables and other accounts of $964 thousand.

 “For FY2021, ASPA realized an increase in restricted assets of $221 thousand which is due to an increase of federal grants receivable.”

The report explains that “restricted current assets are those amounts required to be maintained in revenue bond fund accounts, set aside in accordance with the terms of U.S. Department of Interior capital grant agreements, other federal grant receivables, and deposits into the employee supplementary income plan.

PROJECTS

According to the audit report, ASPA had several achievements in fiscal year 2021 of significant value to the community.

During FY2021, investors carried out geotechnical, detailed site investigations and due diligence work for ASPA’s large-scale renewable project.

ASPA completed several projects of significant value to the community in FY 2021, some of which are included as follows:

FY-2021 PROJECTS ELECTRIC PROJECTS

*          2 x3.5MW GE 16V250 Diesels ASPA took delivery of 2 x 3.5MW diesel generators in FY2021. The gensets are under installation.

*          42 MW Wind Power Purchase Agreement (PPA) 20MW Solar PV Power Purchase Agreement The 42 MW Wind Project was assigned to Japanese Consortium Nippon Koei and Renova; and their local subsidiary to build the wind turbine project is Tutuila Wind Energy (TWE). Projected wind generation was calculated at 101,200,000 kWh per year, which represents 63% of ASPA’s annual energy production.

*          20MW Solar PV Project was assigned to Blue Summit Capital LLC and the local registered company is Malosi LLC When commissioned, the 20MW Solar PV and the 42 MW Wind Generation projects will generate 121,500,000 kWh per year or 82% of American Samoa’s energy needs.

*          Waste to Energy Project – Power Purchase Agreement The Waste to Energy (WTE) Project was awarded to ANKUR in FY2021. ASPA opted for the lower cost option to build and operate its own WTE plant. The commercial operation date is 24 months from the signing of the PPA.

WATER & WASTEWATER PROJECTS

*          Tramway Tank Replacement: Completed installation of Tramway tank #2 which is used to improve the supply of water to high elevation customers in the upper Utulei, Fagatogo, and Gataivai area. The project was USEPA funded in the amount of $1,249,365.

*          New Well Drilling and Exploration: Completed drilling of Wells 18, 19 and 20 in the Kokoland area. When connected, these new wells will improve the water supply, pressure and distribution in the Central Water System and enable ASPA to shut down GUDI wells. The project was USEPA funded in the amount of $1,363,540 and is substantially completed.

*          Manu’a Sanitary Survey: This project addressed significant deficiencies, which was completed to stay in compliance with requirements of the Safe Drinking Water Act (SDWA). The project was US-EPA funded in the amount of $1,000,000 and is substantially completed.