The MSA includes a comprehensive, financial-grade business plan which outlines significant cost-reduction and reliability targets along with renewable energy and customer service initiatives for New Providence and the Family Islands.

“Today is an exciting new day in The Bahamas as we progress into a formal relationship with PowerSecure to implement a robust business plan that will substantially reduce customer electricity costs and will provide increased reliability,” said Nathaniel Beneby, Chairman of the Board for BPL.

Recently passed energy reform legislation has provided for the incorporation of BPL, as a wholly-owned subsidiary of Bahamas Electricity Corporation (BEC), to provide safe and secure electrical services for The Bahamas in a modernized and cost-effective manner. The new legislation also calls for the issuance of a rate reduction bond, which will be utilized to refinance BEC’s existing legacy debt and to fund infrastructure and efficiency investments for BPL which will result in a net reduction to customer electricity bills.

PowerSecure is a public company traded on the New York Stock Exchange (NYSE: POWR) and headquartered in Wake Forest, North Carolina. The company has trailing twelve month revenues of $375 million (to September 31, 2015), a contracted revenue backlog of $447 million (to October 20, 2015) and a market capitalisation of $241 million (to February 4, 2016). It has grown considerably over the last several years posting on average over a 25% compound annual growth rate.

PowerSecure’s 33-year energy veteran and Founder, Mr. Sidney Hinton, serves as its President and CEO. Under his leadership, close to 1,000 employees across the United States operate and maintain approximately 1 GW of Distributed Generation capacity. It reported 98.4 percent reliability for these systems in 2014, which is one of the best in the industry. It has four operating segments: Utility Services (engineering and infrastructure solutions), Distributed Generation (distributed energy for backup power and peak shaving), Energy Efficiency (including production of its own LED lighting systems), and Solar Energy (EPC solar development). The company serves many of the largest utilities in the United States.

“It is an honour and a blessing to be selected to serve the Bahamian people. PowerSecure team members have spent hundreds of hours on the ground in New Providence and across all of the Family Islands rigorously assessing the current condition of existing assets, meeting with BEC employees and developing improved approaches to save customers and BPL money, and to improve the efficiency and reliability of electricity for The Bahamas for years to come,” Hinton said.

Under the terms of the MSA, after receiving a baseline annual management fee, BPL must achieve pre-defined key performance indicators (KPIs) related to cost-reductions, reliability improvements and customer-service enhancements in order for PowerSecure to receive any additional compensation.

The government has appointed a new Board of Directors (BOD) for BPL. This BPL Board of Directors consists of:

o Nathaniel Beneby, Chairman of the Board

o Donna Smith, Deputy Chairperson

o Deepak Bhatnagar, Executive Director

o Daphne Simmons

o Patricia Hermanns

o Andrew Rogers

Additionally, the BOD has appointed Jeff Wallace as the new CEO of BPL, effective immediately. Mr Wallace has more than 35 years of utility experience and has spent the past 10 years as the Vice President of Fuel Procurement for Southern Company, where he has been responsible for managing $7 billion in fuel procurement, planning and delivery programs for 85 power plants.

“I look forward to meeting the team at BPL and working towards creating a world-class utility delivering highly-reliable, low-cost power to the Bahamian people and fostering a culture of excellence at BPL that allows our employees to grow professionally and contribute to a thriving workplace,” Wallace said.

Mr. Kevin Basden, General Manager of BEC, has assumed his new role as the Consultant/ Advisor to the Board of Director and with his wealth of knowledge will guide the board and Executive Management team.

“We wish to thank Mr. Basden for his years of service to the Bahamas Electricity Corporation and are assured that he will be instrumental in helping to achieve BPL’s objectives,” said Mr. Beneby.

Mr. Deepak Bhatnagar, who has been leading the process of energy sector reform, will serve as Executive Director and will oversee the activities of BPL to ensure that PowerSecure delivers in accordance with the business plan.

With the MSA now in place, PowerSecure assumes management responsibility of BPL; however BPL- a subsidiary of BEC-consequently remains a 100% Bahamian-owned utility. Today is an exciting day for BPL and The Bahamas as the country takes an important step in continuing to improve its economy and building a foundation for long-term prosperity for the Bahamian people.

Remarks by The Rt. Hon. Perry G. Christie, Prime Minister of The Bahamas on the Occasion of the Signing of the Management Services Agreement with PowerSecure at the Office of the Prime Minister, on Monday, 8th February 2016:

Thank you Mr. Deputy Prime Minister, Mr. Chairman, Board members, and PowerSecure.

I am happy to be here with you this morning to witness what, to say the least, is a very historic event. Historic, not only for BEC and the new path it has taken; but historic because it is a transformative moment in terms of innovation and modernisation of the utility sector. It ushers in a new way of doing business and I am happy that it has happened during my administration. We came into office on a pledge to modernise The Bahamas and this is but one further step in fulfilling that pledge.

As you have just heard from the Deputy Prime Minister, today is a bright day in the Bahamas as we sign a Management Services Agreement with our friends at PowerSecure that will dramatically reduce the price of electricity for the consumer and increase the reliability of electricity supply across The Bahamas. These fundamental changes in our approach to energy will have long-term benefits for our economy and the prosperity of our country.

When we campaigned for office in the lead-up to the 2012 elections, the Progressive Liberal Party, under our Charter for Governance, recognised that the cost of utilities was much too high. It was an incessant burden on the average consumer, especially the small man and it was a retardant to business and commercial growth. Thousands of consumers lived in fear each month that they would lose their power connection and it became a financial burden which resulted in deal making credit arrangements with BEC just to keep afloat. I am personally aware of many small businesses that had to close, simply because they could not keep up with the spiraling cost of electricity.

We came to power in 2012 fully aware that a new and bold approach needed to be taken with the end result being the decrease in the cost of electricity. Further, we were committed to reducing the country’s reliance on fossil fuels and to addressing the high cost of electricity.  With the signing of this Management Services Agreement today, we will have achieved a major milestone with a specific plan of action to reach our goals and enhance our economy.

Let me say, here and now, that the choice of Power Secure Light (PSL) was open and transparent. No one can fault the bidding and selection process and at the end of the day, we are confident that we have selected the right company that matches the long term energy policy of the Government and BEC. Here is why this is a proper fit.

Firstly, it will decrease the cost of electricity. Secondly, we have not sold off BEC and the country will maintain ownership of this national asset. Thirdly, a company such as PSL with its extensive range of research and innovation will facilitate alternative sources of energy which, in my view, is vital if we are to reduce our reliance on fossil fuel and the traditional sources of producing electricity. From the point of view of the national economy and the Government’s own fiscal policies, this move will remove BEC debt from the Government of The Bahamas books and allow BEC to stand on its own and become a strong and productive entity.  The Rate Reduction Bond will provide BPL with the resources to advance the transformation, BEC desperately requires. Finally, and this is so important, we will be able to do this without losing jobs in BEC.

In terms of macro level planning and development we have always recognised and maintained that energy reform is absolutely critical to the economic development and wealth of our country.  We have taken very deliberate steps in this regard.  We have adopted the National Energy Policy, amended the Bahamas Electricity Act, Realized Renewable Energy & Grid-tie connection, created Bahamas Power and Light and today we sign a Management Services Agreement with PowerSecure to manage BPL.

Under direction from PowerSecure, and with the leadership of the new BPL Board of Directors, Bahamians will see reduced power bills, increased reliability and an investment in the infrastructure and employees of BPL that will build a foundation for long term prosperity, while delivering on our promises of environmental responsibility and energy security.

The benefits to our economy of cleaner, lower-cost, more-reliable power cannot be overstated. As our government meets with business leaders and potential investors from companies we are trying to attract to The Bahamas, the cost and reliability of energy are frequently a concern. We want these businesses to bring their jobs to The Bahamas and with the significant progress we are announcing today, business leaders around the world can see our commitment to clean, low-cost, reliable power.

The high cost of electricity combined with disruptions in power the people of The Bahamas have endured are unacceptable and the actions this government has taken will improve the daily quality of life for Bahamians, and create the reliable electricity infrastructure that modern businesses require in the global economy.

Finally, and this cannot be overstated, the actions of my Government, today, positively impacts every Bahamian and every person within our borders. For homeowners, electricity is cheaper with further reductions to come. For those with an entrepreneurial spirit this move today can move your business from a break-even point to one of profitability. We see in this move the opportunity to drastically reduce the cost of living and increase competition which will benefit the economy as a whole.

Thank you to everyone in the Ministry of Works and Urban Development, BEC and PowerSecure that have done the hard work to get us to this point of progress.  I am confident that we are moving into a new day and a new era.

Now, I would like to invite Mr Hinton from PowerSecure to join me in signing the MSA.

Thank you.