The Tribune

By NEIL HARTNELL Tribune Business Editor GRAND BAHAMA Power Company yesterday said its new generation plant is "more than 60 per cent complete" after a $40 million investment to-date, as the BISX-listed company that holds 50 per cent of its equity unveiled a $1.081 million swing into the red during the 2011 third quarter. ICD Utilities saw its share of Grand Bahama Power Company's equity earnings revert from a $794,863 profit during the three months to end-September 2010 to a $320,185 loss for the same period in 2011, implying that the latter suffered a more than $640,000 loss for its ordinary shareholders. The remaining 50 per cent stake in Grand Bahama Power Company is owned by Canadian utility giant, Emera, which also holds a majority stake in ICD Utilities. Collectively, Emera controls just over 80 per cent of Grand Bahama Power Company's equity, with Bahamian shareholders owning the balance. An Emera spokesperson told Tribune Business yesterday that the more than $1 million reversal in both ICD Utilities' equity earnings and net income was "mainly due" to a year-over-year increase in Grand Bahama Power Company's depreciation expenses, due to an expansion of its asset base. Grand Bahama Power Company also incurred some $300,000 in costs due to Hurricane Irene-related repairs to its infrastructure on the island. Expressing confidence that the company "continues to make improvements to the benefit of its customers", with the ultimate goal being a return to consistent profitability, the Emera spokesperson said Grand Bahama Power Company aimed to bring half the generation units at its new plant online by June 2012. The remainder are scheduled to follow in August. "The new West Sunrise Plant is more than 60 per cent complete, with $40 million invested to date," the Emera spokesperson told Tribune Business. "The total cost of new generation will be approximately $80 million. The plant is on budget and on schedule for completion in 2012. We anticipate the first three units in the plant to be operational in June, and the remaining three units by August." Noting Grand Bahama Power Company's potential, the spokesperson added: " Emera purchased Grand Bahama Power Company because it believes in the future of Grand Bahama Island, the strength of the Grand Bahama Power Company employees and the potential for Grand Bahama Power Company to once again be an important element in supporting the growth of the economy in Grand Bahama." ICD Utilities fell to a $345,516 net loss for the three months to end-September 2011, compared to a $736,248 profit the year before. As for the first nine months, the poor 2011 third quarter performance wiped out a first half profit, turning the year-to-date into a $264,950 net loss. This compared to a $130,970 profit in 2010. For the first nine months, ICD Utilities' share of Grand Bahama Power Company's 2011 equity losses was $200,144, compared to a $243,163 gain in 2010.