JPS applies for rate review
THE Jamaica Public Service Company (JPSCo) has submitted its annual request for a rate adjustment along with an appeal for an extraordinary rate review to raise funds for several projects aimed at stabilising electricity supply in the Corporate Area.
In the proposal, the light and power company has asked the Office of Utilities Regulation (OUR) to set rates at a level that will allow it to earn revenues of $51.3 billion. That projected revenue is based on factors such as system losses performance, foreign exchange surcharge and Q-factor adjustment, which are normally taken into account in the annual review.
If the OUR accedes to the JPS request, it will result in the non-fuel rates on electricity bills going up by 6.6 per cent. That would require the non-fuel rate to average $16.73 next year, an increase of $1.03 cents.
However, the JPS said that since non-fuel rates account for one-third of bills, the impact will be much smaller for various customers. Assuming no change in the current fuel prices and IPP rates, the JPS said the total bill impact will be an increase of approximately 1.6 per cent for all customers.
In addition to that rate adjustment, the JPS has also asked for an extraordinary rate review.
Also, based on its Extraordinary Rate Review submission, JPS is requesting approximately $159.7 million (or US$1.03 million) in revenue to address the stability of the grid in the Corporate Area given the retirement of the Hunts Bay B6 (68.5MW) plant.
The combined effect of the annual adjustment and the extraordinary request would result in an average 1.7 per cent increase in customers’ bills.
The OUR is to make a determination on the application by August.