Pago Pago, AMERICAN SAMOA — Lawmakers were informed during the American Samoa Power Authority budget hearing on Tuesday, that the villages of Aoloau and Auma were recently paid $1 million each for the use of land known as Manunu for the ASPA proposed wind farm project.  

Responding to questions posed by Faipule Luaitaua Gene Pan, ASPA CEO Wallon Young explained that the funds were from a line of credit approved by the ASPA Board of Directors and was an advance payment for the lease agreement that ASPA had signed with the two villages.

Young clarified that payment was made based on the lease agreement to the villages, not individual landowners.

He elaborated that the developers had already invested a lot of time and effort in the project but the lease agreement had still not been signed. So they informed us that in order for them to proceed, they needed a signed agreement.

Secondly, Young revealed that chiefs from the villages of Aoloau and Auma had approached ASPA management and requested an advance payment. He said the request was granted and that it was not an uncommon practice, as ASPA has about 200 leases and they have made advance payments before.

The ASPA CEO explained that the sole purpose of the project was to reduce electricity rates and to reduce dependency on fossil fuels.

He stated that the wind farm project should lower electricity rates which is now 41 cents per kilowatt hour by 50%.

The lease agreement is for 25 years and the lease payment is $1 million a year.

Senator Togiola Tulafono raised the issue of land lease agreements between ASPA and Aoloau and Auma villages, and he asked if the lands involved were signed as village land or communal family land, or natural forests.

CEO Young replied that it was village land and stated that it is outlined in an Appellate Court decision in 1982 where it refers to the two villages.

Togiola persisted and asked if village land was considered communal land, to which the ASPA CEO replied that it depends on the context.

The senator then asked if ASPA was using the presumption that village land may not be communal land to avoid review by the Land Commission and approval by the governor.

Young then admitted that village land was in fact communal land but that it was just under the village authority.

Senator Togiola pointed out that his concern was that the leases he has seen do not have the governor's approval and Land Commission's review.

Young first said that the lease agreements have been submitted to the governor but later on said they have not been submitted but will be.

Senator Togiola asked how ASPA plans to recoup the $2 million if for some reason the lease agreements are not approved.

The senator also brought up ASPA's profit and loss statement, pointing to uncollectible accounts from FY2019 to June 30, 2024.

For FY2022 the amount was $364,761, for FY 2023 was $551,056 and up to June 30 this year the uncollectible accounts were $208,921.  

He asked how ASPA treats these uncollectible accounts, and expressed his concern that ratepayers not end up paying for the uncollectible accounts.

According to Young, most of the uncollectible accounts are residential customers who have moved off-island.

He said ASPA follows the recommendation of the auditors and they leave the amounts on the books for as long as possible, but he would not say that the accounts are eventually written off.