ASPA budget increases funded mainly by grants

Pago Pago, AMERICAN SAMOA — The new fiscal year for the American Samoa Power Authority (ASPA) has seen an increase in its budget, rising to $113 million from the previous $107 million. 

ASPA CEO Wallon Young informed the Senators on Monday that this increase is primarily due to approximately $34 million in grants from the American Rescue Plan Act (ARPA) and the U.S. Environmental Protection Agency (EPA).

He explained that the profit and loss statement for Fiscal Year 2025, ending on July 1, shows a minimal surplus, with a gross of about $174,000. “In previous years, we have included audited profit and loss statements from 2019 to 2024 for comparison purposes. 

“As you can see, there are some years where we report a surplus exceeding a million dollars. This occurs because the Electric Division does not receive grants like the Water and Wastewater divisions do.

“Consequently, for project funding, we sometimes need to save for an entire year to ensure that funds can be utilized in the following year. This practice is why some years show a surplus exceeding a million dollars,” Young explained. 

He provided an example: if ASPA wants to purchase electrical equipment, such as switchgear or generators, in 2027, it starts saving in 2026. 

“Essentially, profit and loss (P&L) is calculated as revenue minus expenses. So, how do we save? We can achieve this by cutting back on expenses, leading to savings or a surplus for that year,” he said. 

According to the ASPA budget, the Fiscal Year 2026 budget totals $113 million, with allocations as follows: $17.2 million for personnel services, $46.9 million for materials and supplies, and $34,072,500 for contractual services. Additionally, $409,500 is designated for travel, and $2.2 million is allocated for equipment. The "All Others" category amounts to $12.2 million.

Young also highlighted an exciting development: ASPA is in the process of hiring 10 new apprentices who will begin their college studies in January. These apprentices will upon completing their coursework, return to ASPA with fresh knowledge and skills to contribute to the organization’s mission.

Moreover, Young revealed a positive trend in staffing levels, noting that the total number of employees at ASPA has increased from 439 to 444.

Among the current workforce, only 19 individuals are employed as contract workers, reflecting ASPA's commitment to hiring local talent and fostering a stable workforce mainly composed of permanent employees from the community. 

Regarding streetlights, Young mentioned that funds have been budgeted for this purpose, and ASPA expects to receive 1,000 new streetlights early next month. 

“There was a delay due to tariffs. Initially, no lights were being sourced from the U.S., but we discovered that they are coming from other countries. Our U.S. suppliers were unaware of the tariff implications, which caused prices to increase. Consequently, we had to cancel those orders and seek alternatives to avoid the tariff impact,” Young explained. 

He added that safety remains a priority for ASPA, and they will continue to install street lights. Young also apologized for the delays in some local projects. 

“I apologize for the delays in our locally funded projects; the main reason is related to our collections.

“We currently have about $11 million in outstanding accounts receivable. Payments have been slow, which has affected our local projects.

“While we haven't halted progress, it has certainly been slowed down. Hopefully, as revenue collection improves, we will be able to expedite those orders sooner rather than later,” he said.