The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE Grand Bahama Power Company has completed for the first time a “cost of service study” to assess the actual costs to produce electricity for each customer class.

The study was submitted, along with an integrated resource plan, depreciation study and full financial details on operating, maintenance and general costs, to the Grand Bahama Port Authority, the regulators of utility rates on Grand Bahama.

In a press statement issued on Monday, the company noted that as part of the Regulatory Framework established with the GBPA in 2012, it has provided a submission for 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,” said the company.

“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.”

In keeping with the framework, GBPC has completed an integrated resource plan assessing how much generation the island will need in the future to ensure that the improved reliability Grand Bahamians have experienced continues, and that growth can be accommodated.

The company has also submitted a cost of service study.

“This is the first time this type of analysis has been done,” the company said.

A depreciation study analysing the remaining useful lives of the company’s plant and equipment and full financial details on operating, maintenance and general costs were also completed and submitted.

“The GBPA and their consultant have been reviewing the submitted material and have laid out their expectations for the final rate submission,” the statement said.

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.”

The company said that the GBPA has asked it to consider low-income customer needs, ways to encourage economic development, and the use of alternative energy opportunities.

Paul Miller, managing director at GBPC, has indicated that the company is turning its attention to introducing renewables on the grid.

“We have really been focused on stabilising rates for our customers and improving reliability over the last few years. 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,” he said.

The company said that once the GBPA is satisfied with the material provided, it will meet with various stakeholders and customers to explain the details of the filing and seek feedback.

There are some 60,000 residential and commercial consumers in Grand Bahama. The company maintains that it has one of lowest electricity rates in the Caribbean.