	Introduction

In September 2017, Hurricanes Irma and Maria, both Category 5 storms, caused catastrophic damage to the U.S. Virgin Islands (USVI). On September 6, the eye of Hurricane Irma passed over portions of the USVI—including St. Thomas and St. John—with maximum winds of 185 miles per hour (mph). On September 20, the eye of Hurricane Maria swept near St. Croix with maximum winds of 175 mph. The USVI government estimates that uninsured damage from the hurricanes will exceed $7.5 billion. According to the Virgin Islands Water and Power Authority (VIWAPA), the public water and power utility on the USVI, the Estate Richmond (St. Croix) and Krum Bay (St. Thomas) power plants fared "relatively well during the passage of Hurricane Maria" and provided uninterrupted electrical service to hospitals. However, according to the USVI recovery funding requests, the government estimates that 80-90% of the power transmission and distribution systems across the USVI were damaged. Before the 2017 hurricane season, VIWAPA was already challenged with fiscal problems and aging infrastructure. Although the USVI has never defaulted on its obligations, it shares similar fiscal challenges as other islands in the Caribbean. These include high debt levels, pension obligations, decreasing tax bases, and outdated infrastructures. Policymakers are currently considering possible options for rebuilding the electricity grid on the islands, given the financial debt before the damage from the storms. Should Congress consider funding for electric power restoration, management of the electric power system by VIWAPA or alternatives to VIWAPA may be considered. Congress may consider whether investment incentives to form public-private partnerships could provide alternatives for modernizing the USVI's grid. Congress may also consider the role of comprehensive energy planning and whether the efforts to restore electric power in USVI will need to progress beyond simple restoration of electricity, and require new investment and oversight by the federal government. Like many remote island communities, the USVI is dependent on fuel oil for the generation of electricity. VIWAPA has actively sought to improve energy efficiency and diversify its energy resources in an effort to reduce fossil fuel-based energy use by 60% by 2025. Collaboration with DOE and Western Area Power Administration

On September 13, FEMA authorized the U.S. Department of Energy's Western Area Power Administration (DOE-WAPA) to assist with emergency power restoration efforts on the USVI. On November 30, 2017, the final crew members from DOE-WAPA had completed their electric power system restoration activities and left the USVI. Within that total, the request for the energy sector is $850 million. These goals include reducing operating costs of both electricity and water systems and decreasing dependence on fossil fuels. Maximize development of solar and wind resources. Grid Hardening and Improving Resiliency

Electric power systems exposed to the elements in the USVI were severely damaged by the 2017 hurricanes.
In September 2017, Hurricanes Irma and Maria, both Category 5 storms, caused catastrophic damage to the U.S. Virgin Islands (USVI), which include the main islands of Saint Croix, Saint John, and Saint Thomas among other smaller islands and cays. Hurricane Irma hit the USVI on September 6, with the eye passing over St. Thomas and St. John. Fourteen days later, on September 20, the eye of Hurricane Maria swept near St. Croix with maximum winds of 175 mph. The USVI government estimates that total uninsured damage from the hurricanes will exceed $7.5 billion. Although the electric power plants fared "relatively well" according to the local public water and power utility (the Virgin Islands Water and Power Authority [VIWAPA]), 80-90% of the power transmission and distribution systems across the USVI were damaged. In November 2017, the government of the USVI estimated that $850 million in hurricane recovery funding is needed to help "rebuild a more resilient electrical system."
Before the 2017 hurricane season, VIWAPA was already challenged with fiscal problems and aging infrastructure. Although the USVI has never defaulted on its obligations, its fiscal problems include high debt levels, pension obligations, decreasing tax bases, and outdated infrastructures.
Like many remote island communities, the USVI is dependent on fuel oil for the generation of electricity. Until 2014, VIWAPA was 100% dependent on fuel oil. In 2010, the USVI established a goal to reduce fossil fuel-based energy use by 60% by 2025. As a result, VIWAPA has actively sought to improve energy efficiency and diversify its energy resources, particularly through the use of propane, solar, and wind power.
Initial disaster recovery efforts focused on restoring power. On September 13, 2017, the Federal Emergency Management Agency authorized the U.S. Department of Energy's Western Area Power Administration (DOE-WAPA) to assist with emergency power restoration efforts on the USVI. DOE-WAPA completed their electric power system restoration activities and left the USVI by November 29.
Hurricanes and extreme weather will continue to threaten the Caribbean, which may prompt Congress to consider infrastructure hardening and improvements to make the systems more resilient. Building a modernized, flexible electric grid, capable of incorporating more renewable sources of electricity, underpinned by more efficient fossil fuel power plants and energy storage, may help the USVI accomplish these goals.
Policymakers are currently considering possible policy options for rebuilding the electricity grid with greater resiliency. This report explores several alternative electric power system structures for meeting the electricity services and needs of the USVI. The cost of rebuilding and modernizing the entire USVI electric grid likely far exceeds the fiscal capacity of the territory in the current budget environment. Incorporating resiliency could also be expensive. Congress may consider the role of comprehensive energy planning and whether the efforts to restore electric power in the USVI should include support for a resilient and modernized electric power system. Additional support for a modernized electrical grid may require new investment by the federal government, investment incentives to form public-private partnerships, or debt adjustments, among other strategies.