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Last Updated: Feb 13, 2017 - 1:45:37 AM |
GBPA: GBPC Improvements Evident in 2016-2018 Rate Submission Proposal would reduce or hold rates flat for customers
By Grand Bahama Port Authority, Group of Companies
Oct 9, 2015 - 8:43:47 AM
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In 2012, The Grand Bahama Port Authority (GBPA) established an Operating Protocol and Regulatory Framework which documents how electricity rates will be set for the Grand Bahama Power Company (GBPC). The Framework, the first of its kind in the Bahamas, set out electricity rates for 2013 – 2015 and required the Power Company to submit a number of studies and statistics to justify any request for changes in rates. It also requires GBPC to submit a rate case filing to the regulator every three years and accordingly GBPC submitted a rate filing for GBPA’s review during the first week of August, 2015.
If approved, the new rate structure would mean a reduction in the “all-in” price of electricity for 85% of residential customers. This is a very important step in beginning to assist Grand Bahama’s low income based residents. The cost of electricity will remain relatively flat for commercial customers when compared to the average “all-in” price for 2015. The proposed all-in rates (inclusive of fuel and base rate) are returning to almost 2008 levels, delivering significant price stability to customers.
GBPC’s rate submission, notes that for the period 2013 – 2015, the utility has progressed steadily towards achieving its three–point plan established in early 2011: stabilize rates for customers, improve the reliability of service, and lessen the dependence on fossil fuels.
Specific progress includes:
Reduction in operating costs due to improved generation heat rates and reductions in waste oil, internal efficiency improvements and system losses.
Implementation of a fuel hedging program to better control fuel costs and provide long term stability and predictability to customers
A decrease to the fuel charge by 25% compared to 2014.
Upgrades to both Generation and Transmission & Distribution (T&D) infrastructure, to enable more efficient generation and more reliable power delivery for customers.
Improvements of more than 55% in system reliability for the supply of electricity (less outages, shorter duration).
Improvements of more than 25% for generating plant efficiency which reduces the amount of fuel burned, thereby reducing the fuel charge.
Continued improvements in customer service.
New Vegetation Management Program.
To proactively save for system damage from Hurricanes, a Hurricane Recovery Fund is proposed to be established, similar to most utility companies in the region.
Other innovative GBPC initiatives expected to provide significant customer benefits include deferral of capital investment in fossil fuel generation assets, switching out all night-lighting to LED technology; implementation of a solar/battery solution on Water Cay and the introduction and evaluation of storage and solar P.V technology. The utility is also looking to introduce biofuel for its diesel vehicles and generating engines by the end of 2015, and the development of a Renewable Energy Rider rate which will allow customers to utilize renewable energy sources and sell surplus energy back to the electrical grid.
GBPA believes that GBPC’s overall submission demonstrates a commitment to resolving issues that GBPA identified and challenged the utility to address.
While GBPA is satisfied with GBPC’s progress in the identified priority areas, it’s important that we receive your feedback on this rate submission. The Grand Bahama Port Authority looks forward to receiving comments from customers, which can be sent to info@gbpa.com.
© Copyright 2015 by thebahamasweekly.com
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