FREEPORT, Grand Bahama, January 17 2022 — The Grand Bahama Port Authority (GBPA), in its regulatory capacity with responsibility for the power sector in Grand Bahama and oversight of Grand Bahama Power Company (GBPC), has completed its review of the GBPC rate case application 2022-2024.
In a press release today, the GBPA noted that it “received the tariff application on September 23, 2021, as per the Regulatory Framework Agreement and commenced its initial review.”
“As part of its due diligence, GBPA conducted a 45-day consultation exercise, which included publishing the GBPC rate case application, engaging the Government of the Bahamas, key stakeholders, and the hosting of a virtual town hall meeting.”
The GBPA release added: “At the end of the consultation period, the GBPA Regulatory Committee advised that as a result of its due diligence, public engagement and ongoing discussions with GBPC, additional matters and revisions had been tabled, which necessitated further deliberation and extended the review process for an additional 14 days ending January 14, 2022.
“GBPC’s originally filed rate case application requested an average base rate increase of 6.3%. Based on GBPC’s filing, the main factors contributing to this increase are hurricane insurance expense, and amortization of regulatory assets deferred due to hurricanes Matthew and Dorian.
“The GBPA Regulatory Committee reviewed the application, taking into consideration the concerns expressed by residents and stakeholders during the consultation process, and have actively adjusted the original filing following intensive discussions with GBPC. “GBPA worked diligently with its utility expert consultant and GBPC, which resulted in a revision of the original application. We are pleased to say the final filing has resulted in notably decreased numbers, with a reduction to 53% of the original filing.”
Continuing, the release stated: “On January 14, GBPA communicated its approval to GBPC of the revised application and reduced base rate increase to 3.3%. Furthermore, the implementation of any increase has been deferred to April 1, 2022, to ease the rollout impact for customers. GBPC, in their projected 5-year plan has committed to 15% of its generation from renewable sources by 2026 and proposes to invest over $80M in capital improvements, which include a 5MW solar plant, and battery storage, as well as other improvements in generation and transmission and distribution.”
The press release noted that the Regulatory Committee “also advised that they will be working with GBPC to utilize feedback from its consultation process to ensure continuous improvement in customer service metrics that will further protect the interests of customers and hold the utility to additional stringent levels of accountability,” adding that these “metrics will be published on the regulatory website and reported on quarterly.”
“GBPA takes seriously its regulatory obligation to act in the best interest of customers while understanding the need to balance having a healthy utility able to provide reliable, cost effective and efficient power to meet the island’s needs and future growth,” the release concluded..
