The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE Grand Bahama Port Authority (GBPA) says that the new rate structure being proposed by the Grand Bahama Power Company, if approved, would result in a reduction in the “all-in” price of electricity for 85 per cent for residential customers in Grand Bahama.

“This is a very important step in beginning to assist Grand Bahama’s low income based residents,” said the GBPA in a statement yesterday.

In terms of commercial customers, the GBPA said that the cost of electricity will remain relatively flat 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,” the company said.

In 2012, the GBPA established an Operating Protocol and Regulatory Framework which documents how electricity rates will be set for the Power Company.

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, the company submitted a rate filing for GBPA’s review during the first week of August.

According to the GBPA, the Power Company’s rate submission noted that for the period 2013-2015 it has progressed steadily towards achieving its three-point plan established in early 2011: stabilise rates for customers, improve the reliability of service and lessen the dependence on fossil fuels.

The GBPC has achieved reduction in operating costs due to improved generation heat rates and reductions in waste oil, internal efficiency improvements and system losses. The Power Company has also implemented a fuel hedging programme to better control fuel costs and provide long term stability and predictability to customers.

Additionally, the GBPC has decreased the fuel charge by 25 per cent compared to 2014; upgraded both Generation and Transmission and Distribution infrastructure to enable more efficient generation and more reliable power delivery for customers; improved more than 55 per cent in system reliability for the supply of electricity (less outages, shorter duration); improved more than 25 per cent for generating plant efficiency which reduces the amount of fuel burned, thereby reducing the fuel charge; continued improvements in customer service; and a new Vegetation Management Programme.

The Power Company has also proposed that a Hurricane Recovery Fund be established to proactively save for system damage from hurricanes.

Other innovative initiatives by the GBPC that are 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 photo-voltaic technology.

The power company is also looking to introduce bio-fuel 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 utilise renewable energy sources and sell surplus energy back to the electrical grid.

The 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, the company said its important that they receive feedback on the rate submission. Comments can be sent to info@gbpa.com.