Freeport, The Bahamas – (Statement) As part of the Regulatory Framework
established with the Grand Bahama Port Authority (GBPA) in 2012, the Grand
Bahama Power Company (GBPC) has provided a submission for GBPA’s review.
The Framework, the first of its kind in the Bahamas,
set out electricity rates for 2013 to 2015 which resulted in no increase to
customers’ all-in costs for the period.
It is clear to us that the GBPA has been building
their regulatory knowledge over the past several years through the use of
industry experts, resulting in requirements for a greater level of detailed information
to ensure decisions are made in the best interests of all electricity customers.
The material submitted included:
- An Integrated Resource Plan which assesses how much generation the
island will need into the future. This ensures that the improved
reliability Grand Bahamians have experienced continues, and that growth can be
accommodated.
- A Cost of Service Study which assesses how much it actually costs to
produce electricity for each customer class. This is the first time this
type of analysis has been done.
- A Depreciation Study which analyzes the remaining useful lives of the
company’s plant and equipment.This is a key issue for utilities who are
inherently asset-heavy businesses.
- Full financial details on
operating, maintenance and general costs.
The GBPA and their consultant have been reviewing the
submitted material and have laid out their expectations for the final rate
submission.GBPC President Sarah MacDonald said, “The Port Authority has
been very clear on what they expect rates to look like for the next few
years. They have told us to sharpen our pencils and keep prices stable,
which aligns with our long-term goal of stabilizing, and eventually lowering,
the cost of electricity to customers.”
Further, the GBPA has asked GBPC to consider
low-income customer needs, ways to encourage economic development and the use
of alternative energy opportunities. Paul Miller, Managing Director at GBPC
stated, “We have really been focused on stabilizing rates for our customers and
improving reliability over the last few years; now we’re turning our attention
to introducing renewables on the grid. We expect to be using bio-fuel
from waste oil, in our trucks and generation equipment by the end of the year,
and next year we’ll be installing solar. It’s just a start to reducing
our reliance on foreign oil.”
Once the GBPA is satisfied with the material provided,
GBPC will meet with various stakeholders and customers to explain the details
of the filing and seek feedback. Ms. MacDonald noted, “We are committed
to transparency in the regulatory process. We’ll share what we have submitted
with a wide group of customers and welcome their questions and concerns, which
we will take into consideration in our final rate submission.”