The Regulatory Framework established between GBPC and GBPA was created with residents in mind; this framework brings improved transparency to the rate regulation process. As the independent regulator of the power sector, GBPA has responsibility to approve the rate structure of GBPC and to ensure operational standards are in line with international prudent utility practice.
GBPC seeks approval for:
- Adjustments to the rates & charges, as described in the application
- A new tariff classification called Large Industrial, as described in the Application
- Development of a Renewable Energy Rider, on a pilot basis
- A revenue requirement including base revenue of $71.2 million
- A decreased base revenue requirement of $600,000 from 2014. A reduction on Return on Rate Base from 10% to 8.8%
- A Hurricane Self Insurance Fund, which will be $0.003 per kWh that would go into effect January 2017 and collect about $1 million per year
GBPA along with a regulatory expert consultant have been reviewing GBPC’s rate filing. As in other regulated businesses, GBPC has had to submit a number of studies and statistics in order to justify any change in rates. These included a Cost of Service Study (which determines the actual cost to serve various classes of customers), a Depreciation Review, Customer Service Level information and detailed financial information laying out the operating costs and the justification for them.
In their application, GBPC has outlined a detailed plan to execute a number of initiatives which GBPC claims will ensure that the future cost of electricity is stabilized and investment in future fossil fuel based generation can be deferred.
After their submission in August 2015, GBPC completed a series of stakeholder meetings to share the details of their rate submission and garner feedback. The GBPA also provided customer feedback to GBPC and specific direction from our regulatory consultant, both of which have been included in a revised submittal by GBPC.
The last change in electricity rates was granted in 2012; however, this was a rebalancing of the base rate, where the “All-In” rate (inclusive of base rate and fuel charge) was designed to remain the same or lower.
The table below shows the proposed tariffs for the 2016 to 2018 period, with a comparison to the 2015 tariff.
GBPC claims the following:
- The current application introduces a 4.5% base rate reduction for the first 350kWh of energy that is used by all residential customers.
- Sixty percent (60%) of residential customers will see no increase to the base tariff and 85% of residential customers will see a decrease to the “all-in” price of electricity (which includes fuel and base rate) when compared to the average “all-in” price for electricity in 2015.
- Commercial and General Service Large customers should expect a slight increase in the base tariff at approximately 3.6%; however, these customers actually see an average decrease of 1% or less to their “all-in” price of electricity (including fuel and base rate) when compared to the average “all-in” price for electricity in 2015.
- There is no increase to the “All-in” price of electricity for 90% of all customers, regardless of customer category, until 2019.
- The figures below show the impact on total costs for the residential and commercial class of customers with various consumption levels. As shown, there are savings for all customer classes and consumption levels on Fuel charge.
In accordance with the Regulatory framework, residents can view a summary of GBPC’s application at www.gbpa.com, the full application is available for viewing at GBPA’s headquarters during normal business hours by appointment only. Appointments can be made via email to regulator@gbpa.com.
Additionally, we invite the public to provide any and all comments, questions or concerns with respect to the proposed rate plan to the Regulatory Committee via email at regulator@gbpa.com by the 4th December, 2015.
