GBPA claims proposed adjustment would decrease bills for 42% of GBPC customers
NASSAU, BAHAMAS — Grand Bahama Port Authority (GBPA) President Ian Rolle yesterday stressed that the regulator has made no determination regarding the Grand Bahama Power Company’s (GBPC) rate increase application, noting that the issue is a “balancing act”.
Rolle, who was addressing a virtual town hall as part of a 45-day consultation process on GBPC’s rate case, stated: “We have not approved any rate increase at this particular time.
“There is a regulatory agreement in place and the power company is required to submit a rate application, which they have done, and we are currently reviewing it as well as meeting with various stakeholders to discuss.”
Rolle further noted: “We are reviewing the application before us. There is a legal framework that governs how we manage the utility company here in Grand Bahama.
“We are considering what the government has stated because they are a key stakeholder. We want to hear from everyone, actually, with regards to their opinion regarding the rate application.
“This is a balancing act because you do want to have a healthy, viable power company because it affects the lives of everyone in Grand Bahama.”
The government has established a committee to review and address the proposed increase.
GBPC’s application proposes a 3.2 percent rate reduction for residential customers who consume up to 200 kilowatt-hours per month, representing about 18 percent of customers.
According to company executives, there will be no change in base rates proposed for residential customers consuming between 201 and 350 kilowatt-hours per month, representing 24 percent of customers.
When you look at the amortization of the regulatory assets, they are now proposing to resume that because we had discontinued that between 2016 and 2018 and that is $2.3 million.
– GBPA Senior Legal Counsel Karla McIntosh
This pricing structure will result in 42 percent of residential customers having a decrease or no change to the base tariff.
Karla McIntosh, GBPA senior legal counsel, noted: “The framework is based on a cost analysis model.
“When we look at the revenue requirement of GBPC in 2018, it was $61.7 million. When we look at the proposed revenue requirement for this filing, it is $66.5 million, which is [an] increase of $4.8 million.
“This increase is in respect to the insurance expense, which in 2018 moved from $2 million to $44.3 million.
“When you look at the amortization of the regulatory assets, they are now proposing to resume that because we had discontinued that between 2016 and 2018 and that is $2.3 million.
“Those are the two factors making up the increase of $4.8 million.
“Their cost [has] increased and this has resulted in the propped increase to the customer bills.”
