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Is Emera Destroying Grand Bahama?

EmeraOf importance is that Emera is not only sucking the blood out of GB, but also others in their Caribbean portfolio, St. Lucia & Barbados.

* Operating Power & Water utilities are a Big Responsibility for a society, a life or death matter.

* For this reason Governments give operators incentives and extended term monopolies for a given geographical area such as GBI, however these operators are not supposed to lie, steal and cheat the good people of Grand Bahama. Emera has played a major part in ruining lives, destroyed businesses and put a stop to any further investments or expansions by existing companies here on Grand Bahama.

* Governments also establish Utilities Boards or Agencies representing the end-user and overseeing the proper managing of such vital services. Who is responsible for that in GB? The FNM Government failed to address Emera’s abuses. PM Perry Christie and the newly elected PLP Government now have an opportunity to do right by Grand Bahama (as promised) and get rid of Emera.

The Government of the Bahamas has an obligation to its people. While Nationalization of a Company is a big NO NO I think the International community would completely understand and support the removal of such an abusive corporation. Grand Bahama cannot and will not survive much less flourish as long as Emera controls the Power Company.

As The Bahamas has always had a good relationship with Canada I am not sure why the Canadian Government allows Emera to do such damage in The Bahamas.

* All utilities have knowledge of the historical power demands of their servicing community. It is their market and business strategy. Before Emera our cost of power, rate and usage, was half of what it is now. The cost of oil has been high for several years, that excuse is old. The fact that Emera purchased a Power Company with a 50-year-old generator and had to lease several turbine generators is not our problem.

The cost of these turbine generators should not have been passed on to the community but should have been amortized over several years as is normal with any capital project.

Just like when the hurricane destroyed over a thousand poles, GBPC had no insurance and no reserves to replace them. Despite the fact that the poles where over 40 years old and rotten, the Power Co, with the permission of the GBPA, added a surcharge to our bill to pay for the new poles. Ridiculous.

Any decent lawyer here on Grand Bahama will tell you that under the Hawksbill Creek Agreement the GBPA was licensed and agreed to provide power not to sell the power company to a private company.

The GBPA was obligated to provide power for the development of the Island at a reasonable cost, not to profiteer and restrict the business community from developing.

Another fallacy is their claim to exclusive rights to electricity making the use of a generator illegal. BS, who gave them that right?

* All utility companies have to upgrade their generating equipment and maintain their power grids, it is part of their business operation model. The fact that Emera purchased a 50 year old generator and 40-year-old poles, and paid too much for it, again, is not our problem.

* All utility companies must deal with weather effects, be it snow and ice or hurricanes, it is part of their business operation model. Reserves and depreciation is normal for the industry.

* Most utility companies have built-in programs such as equipment replacement accounts or insurance for weather issues. GBPC has no such program as millions and millions of dollars were paid out as dividends to shareholders. Sir Jack and Lady Henrietta can both attest to this.

* All utilities have a Fuel Surcharge, based on a combination of:

* what type (bulk oil, diesel, jet fuel),

* when bought (market barrel price),

* quantities (amount committed to or purchased),

* from whom (local or international sources),

* transport and storage.

* Emera has made some very bad and expensive business decisions in there fuel purchase, but as long as we pay for it they don’t care

* The difference is how you manage these.

* Barbados has a Public Utilities Commissions (PUC) oversight agency with an elaborate formula to establish the Power Rate, thus it is less than GB.

* GB Power Rate is higher than BEC in Nassau and other family islands.

* The arbitrarily determined Fuel Surcharge is the nails closing the lid of our coffin. This rate is manipulated in order to continue their huge profits for shareholders back in Canada.

* Who oversees the operation, management and Power Rate of Our GB Utilities? Is it the GBPA or is it Government ?

* How can a society advance and pursue investors and jobs, when it cannot provide adequate economically viable power? I will bet that the Canadian share- holders in Nova Scotia and the Over paid board of directors are happy with Emera on GBI.

* Sustainable Energy Sources are a small bandage for lessening the burden somewhat, but not the answer, not yet.

All require large amount of time and investments.

Solar panels on roofs, tied into the existing grids are another quick bandage for the wound. But require:

– The utility to agree to concept of Grid Tie-In and Proportional Pay-Back, while overseeing the hook-up to their grid.

– The government to provide duty free incentives for all associated Solar equipment. (cables, panels, supporting structure, controllers)

– The price of Solar Panels has come down, but that of controllers have not. A $3,000-8,000 investment.

– Like solar hot water heaters, Solar Panels are another item mounted on your roof, capable of hurricane damage.

EMERA has a very poor reputation in all of its markets, Nova Scotia, Barbados, St. Lucia and especially Grand Bahama for poor Power Rate, poor Customer Services, maybe we should be the first to put a stop there abuse.

Pick up a phone and call anyone in its respective markets.

Just prior to the arrival of Ms. McDonald and the management change I met twice with the management to discuss how we the business community might encourage Government to help GBPC cut cost.

At that time Emera’s biggest complaint was the cost of labour due to an abusive labour Union, both of them. Their second complaint was general and employee theft. Not sure how these two issues drove up the cost of electric, but no matter what we say or complain about, Emera has an answer, or excuse.

By:  Jeff Butler

Posted in Opinions

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