NASSAU, BAHAMAS – Bahamas Power & Light (BPL) has reached a settlement with its insurer over the blaze that destroyed two of its engines at the Clifton Pier power plant, according to its chairman Dr. Donovan Moxey.
Moxey said the company is now seeking to finalize the agreement.
While all of the company’s assets were full insured, the BPL chairman said coverage does not extend to the transmission and distribution network.
Moxey said it will cost $50 million plus to replace the transmission and distribution network on Abaco in the aftermath of Hurricane Dorian.
He spoke at the Bahamas Institute of Chartered Accountants (BICA) Accountants Month conference at the Meliá Nassau beach Resort.
“Station C which had the fire was fully insured,” Moxey said.
“The assets that were there in terms of the two generators 11 and 12 and then the buildings were all fully insured. We finally got to a point with the insurance company where we reached a settlement.
“I’m not able to announce that publicly but we are waiting to finalize that,” he continued.
“We also had business interruption insurance as well which we claimed on and successfully got paid for the business interruption portion that we actually suffered, so we are fully covered insurance wise.”
The fire occurred on September 7 last year and caused damage to station C, which housed two of the company’s largest generators. That incident prompted BPL to begin massive load shedding throughout New Providence.
Moxey said: “We also had a second fire in Bimini which didn’t go to well for us and as a result of that, obviously if a customer has a lot of these events you raise their rates, so we are facing that as well as a company.
“All of our assets are fully insured. The only thing that is not insured which insurance companies don’t do is the transmission and distribution network.”