NASSAU, BAHAMAS — The Grand Bahama Utility Company (GBUC ) has proposed a rate change to its utility customers effective May 1, 2023, noting that it had deferred the increase for two years.
The company stated that while 40 percent of its customers will see no increase in their bills, the remaining GBUC customers will, on average, see an increase of approximately $8 on their bills.
The company also noted that to date it has spent over $15 million in Hurricane Dorian-related recovery costs, at a financial burden to the utility.
The company said that it has invested over $5 million in the new, mobile, customized RO system, which was necessary to provide 100 percent of Grand Bahama residents access to full water potability and ensure resilience and storm hardening of the company’s infrastructure.
It also pointed out that Hurricane Dorian flooded its infrastructure and did “unprecedented damage” to the freshwater aquifer located at Wellfield 6, which provided 60 percent of residents with a premium supply of drinking water before the storm.
According to the company, RO systems are extremely expensive to operate in comparison to well water plants, adding an additional $2.5 million to the utility’s annual operating costs from 2021 at a financial loss to the utility.
“This additional operating cost, to date, will not be recouped in rates retroactively. GBUC also experienced $3M in Hurricane Dorian-related infrastructure storm damage. In addition, there was approximately $2 million in uninsurable losses associated with Hurricane Dorian including over 1⁄2 million dollars in costs to operate the free water depots for residents and 25 percent discounts given to residents for water usage.
“These costs were at a financial loss to the utility and will not be recouped in rates. The 25 percent discount and free water depots were in place from 2019 to Dec 2022 at a financial cost to GBUC,” the company further noted.
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