The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Electricity Corporation’s (BEC) former executive chairman yesterday described the impending acquisition of its newly-appointed manager as “very interesting”, arguing that the deal with the Government could have boosted its sales value.

PowerSecure International signed the five-year management services agreement with the Government less than three weeks ago, and Leslie Miller expressed hope that its purchase by Southern Company could ultimately benefit BEC and the Bahamas.

“PowerSecure would have enhanced the position of their company by acquiring this contract with BEC,” Mr Miller said. “It helped them put their company back on track. I’m sure BEC played a vital role in the enhancement of their stock price. They should thank BEC for helping to enhance the value of their stock.”

Mr Miller, now the Water and Sewerage Corporation’ chairman, said PowerSecure’s sale

could bring tremendous value to BEC, and might be a benefit for the country in the long run.

“No doubt I think that PowerSecure’s alliance with BEC would have enhanced their profitability. Their shares were down 34 per cent this year,” he added.

“I think that contract with BEC could have played a positive role in their outlook to enable them to be acquired by Southern Company, which is a massive electricity company, one of the largest in the world. It’s a world-class entity, you can’t doubt that.

“Maybe there are some benefits to be derived from this arrangement. Hopefully they can transfer some of their knowledge and expertise. I feel good about this, that it could be a positive thing.”

PowerSecure  announced yesterday that the Atlanta-based utility giant will acquire it for $431 million. PowerSecure will become a wholly-owned subsidiary of Southern Company,and its stock rose 87.5 per cent on the heels of the announcement.

PowerSecure signed the five-year management services agreement with the Government to provide management services to BEC’s subsidiary, Bahamas Power and Light (BPL), on February.

Jeff Wallace, the newly-appointed BPL chief executive, spent the past 10 years as vice-president of fuel procurement for Southern Company, where he was said to be responsible for managing $7 billion in fuel procurement, planning and delivery programsme for 85 power plants.

Mr Miller told Tribune Business: “It is very interesting. I trust that they would have had the courtesy to inform the Government during their negotiations that that was something on the table.

“If not, there could be problems down the road. We don’t want any spin-off where the contract that is supposed to benefit the people of the Bahamas is being used in a game to enhance a company’s stock that could be to our detriment.

“It’s the bottom line of these big companies that concern them and nothing else. The sooner we learn that, the better off we will be. It is going to take Bahamians to get into the mindset that the things these companies are proposing to do, you have people here who can do the exact same thing.”