More than 85% of GBUC customers would see an average monthly increase of less than $15
under the proposed rate adjustment.
FREEPORT, GRAND BAHAMA, September 15, 2026 – In keeping with the regulatory framework and following the conclusion of the previous approved rate period (2023), Grand Bahama Utility Company (GBUC) has submitted a rate review application to its regulator, the Grand Bahama Port Authority (GBPA).
For GBUC, the application is focused on three priorities: maintaining reliable potable water service, replacing and modernizing aging infrastructure, and building the financial and operational capacity needed to sustain the system and prepare it for Grand Bahama’s future. Since Hurricane Dorian and the last rate review, GBUC has continued to invest in necessary infrastructure to improve potable water production, water quality, reliability, and system performance.
GBUC currently serves approximately 11,500 customers, and the proposed adjustment has been structured so that the impact varies according to water consumption.
Customers using 2,000 gallons or less per month, representing approximately 4424 (38.4%) of GBUC customers, would see an average increase of approximately $2.57 per month. More than 85% of GBUC customers would see an average monthly increase of less than $15 under the proposed rate adjustment.
Customers using more than 2,000 gallons which account for 7087(61.6%) of GBUC customers would see increases based on their level of water consumption, as summarized below:
Tier | Monthly Water Consumption | Approx. Customers | Avg. Monthly Increase
Tier 1 | 2,000 gallons (flat rate) | 7,087 | $3.73
Tier 2 | 2,001 to 10,000 gallons | 5,628 | $7.85
Tier 3 | 10,001 to 20,000 gallons | 864 | $23.26
Tier 4 | More than 20,000 gallons | 595 | $278.60
“We have structured the proposed adjustment to limit the impact on lower-usage customers while providing the revenue required to maintain and improve the water system,” Leon Cooper, GBUC General Manager said. “We recognize that affordability matters to our customers, and that has been an important consideration in how this proposal was developed.”
Since the last rate increase GBUC has made a significant investment in a $5 million Reverse Osmosis (RO) facility capable of producing up to 2 million gallons of potable water per day. The facility has strengthened GBUC’s water production capacity and provides additional flexibility as the utility manages the long-term effects of saltwater intrusion on Grand Bahama’s natural freshwater resources.
Operating and maintaining this additional infrastructure has also increased the utility’s operating costs, particularly its energy requirements. GBUC has sought to manage these and other financial pressures through cost-control measures, improvements in operating efficiency and initiatives aimed at improving energy efficiency. The financial and operational pressures that remain form the basis of the rate review application now before the regulator.
If approved, the application would support GBUC’s continued programme of infrastructure and operational improvements over the coming years. These include, among other initiatives, replacing and rehabilitating sections of the water distribution network, repairing water storage tanks, upgrading wellfields, expanding remote monitoring and automation, modernizing water treatment and disinfection systems, and investing in equipment required to maintain and respond to issues across the network.
The objective is to progressively create a water system that is more responsive and agile, allowing GBUC to better monitor conditions, respond to problems, manage its resources and deploy assets where they are most needed. The rate review is also intended to support longer-term planning for Grand Bahama.
“As Grand Bahama grows, the infrastructure that supports that growth must also be ready,” noted Cooper. “Our goal is a robust water system that provides our existing customers with the quality and reliability they require, while also having the capacity to support new homes, businesses, tourism developments and industrial investment.”
In the rate application, GBUC is seeking approval for its plan to equip the system with greater reserve capacity and operational flexibility, helping the utility better manage demand changes and respond to significant disruptions.
“Historically, the island’s freshwater aquifer provided both a primary source of water and significant natural reserve capacity. The experience of Hurricane Dorian demonstrated the importance of complementing those natural resources with additional production and above-ground reserve storage.” Cooper further noted.
As Grand Bahama’s natural water environment continues to change, GBUC must adapt how it produces, stores and distributes potable water. The rate application seeks to support the investment needed to build a more resilient and flexible water system that can reliably serve customers today and meet the island’s future needs.