Freeport, Grand Bahama – September 18, 2024 – Grand Bahama Port Authority’s (GBPA) Regulatory Committee has concluded its initial review of the rate proposal submitted by the Grand Bahama Power Company (GBPC) and has commenced a 45-day period of public consultation.
GBPC’s application, received on August 1, 2024, proposes a rate plan for 2025 to 2027. Key elements of the proposed plan include:
- Base Rate Adjustment: A proposed 6.32% increase in base rates across all customer classes.
- Fuel Charge Reduction and Stabilization: Reduction of fuel charges in year one and stabilization in years two and three, with average forecasted fuel rates of $0.1244 per kWh in 2025, $0.1383 per kWh in 2026, and $0.1439 per kWh in 2027.
- Storm Recovery and Stabilization Charge Adjustment: The Storm Recovery and Stabilization Charge, which was put in place to help recover costs associated with rebuilding following Hurricane Dorian, will revert to zero effective Summer 2026.
In its filing, Grand Bahama Power proposed investments of $8.4 million over the next three years focused on enhancing system reliability and efficiency. These include the significant upgrades to transmission and distribution infrastructure slated at a cost of $3.0 million to support growth in a critical area; as well as battery storage investments of $4.5 million to aid in the capture and efficient use of energy generated from solar systems. Further, in outlining the all-in rate impact on various customer classes, GBPC’s filing states that Residential, General Service Large, and Large Industrial customers’ all-in costs will remain relatively unchanged in the first year, with less than a 1% change from current all-in costs. While there will be varying adjustments each year, the all-in cost is projected to reach its maximum increase of 4% in 2026, before leveling off with a 2.5% change in 2027 from current rates.
To facilitate public understanding of the rate review and its potential impact, and ensure transparency of the rate review process, GBPA’s Regulatory Committee has prepared a summary overview of the key details and proposals outlined in GBPC’s application. The summary is now available to the public through GBPA’s website at www.gbpa.com. The public is invited to review the document and provide comments and feedback through the website. As we commence a 45-day community and stakeholder consultation period, our review will include conversation and information-sharing with stakeholders to gather diverse perspectives.
Following the consultation period which ends November 4, 2024, GBPA’s regulatory team and its regulatory consultant will thoroughly review the proposed application. This review will fully consider all information and feedback presented to determine what is reasonable for customers at this time before issuing a final decision on the rate application on December 2, 2024.
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