FREEPORT, Grand Bahama, May 2, 2023 –The Grand Bahama Port Authority (GBPA), in its regulatory capacity with responsibility for the utility sector in Grand Bahama and oversight of Grand Bahama Utility Company (GBUC), has completed its review of the GBUC rate case application 2023, the GBPA announced in a statement released today
Noting that the application was based on the cost-of-service model in line with international best practices, the statement added: “As part of the process, GBPA has made public on its website (www.gbpa.com) the Regulatory Framework that GBUC is to be governed by. With the publishing of this innovative Framework Agreement, GBUC is the first and only water company in the country to be regulated by an agreement that documents how rates are to be set, operating and environmental protocols and establishes customer service standards with penalties to be paid to customers.
“The GBPA Regulatory Committee reviewed the application, taking into consideration the concerns expressed by residents and stakeholders to balance the customer needs with having a healthy utility that can provide quality and sustainable service. As part of the formal response to the utility, GBPA has sanctioned the following customer service standards that GBUC will be held accountable to its customers and regulators. If GBUC fails to meet any of the below service standards, customer water accounts will be credited with the amounts stipulated below:
“On May 1, GBPA communicated its approval to GBUC of the application, to be made effective in June bills. GBUC, in their application where 40% of customers will see no change in their bills, has been approved to commence with proposed capital investment plans that include the construction of a 1.5 million gallon a day mobile reverse osmosis plant to begin construction this year. This is in addition to the recently constructed 3 million gallon a day reverse osmosis plant that was commissioned in 2021.
“GBPA is cognizant of the catastrophic impact of Hurricane Dorian on the utility company and specifically that the utility lost 60% of its potable water supply because of Hurricane Dorian and the 20-foot surge of seawater that flooded their biggest water plant. The new Reverse Osmosis plant is critical to the ability of GBUC to resolve the lower pressure being experienced by customers because of the diminished freshwater lens. It is also necessary to ensure that Grand Bahamians will continue to have access to long lasting and sustainable supply of potable water, which is integral to the standard of life for the island.
“GBPA understands fully the importance of ensuring that this island has access to a consistent and quality supply of potable water that meets World Health Organization (WHO) guidelines. We are cognizant of the critical role of water in our everyday life and future development. We act in accordance with best practices and industry standards to balance the needs of customers, protect our natural resources, and ensure we have a sustainable and storm resilient utility.”
