PUC Releases 33-Page Report Addressing BEL’s Concerns Over Tariff Review

A 33-page report has been released by the Public Utilities Commission (PUC) regarding the objections Belize Electricity Limited (BEL) had made regarding a tariff review.  In June, the PUC issued its initial decision but BEL had concerns leading which led to the hiring of an independent consultant, Dr. Rajendra Addepallis.  The report covered five areas including cost of power, operating expenses, rate of return, performance penalties and regulatory balancing account.  As it relates to the Cost of Power, the expert recommends that BEL take advantage of PUC’s willingness to accept further analysis on the matter.  Additionally, the expert recommends that both parties come to a mutual understanding for a methodology that would be applied for any future cost of power forecast.  The report carried on in the four areas with each set of recommendations calling for a closer working relationship between the commission and BEL.  When it comes to the operating expenses (OPEX), the report concluded that ‘there should be an understanding with the PUC as to the level of detail the PUC considers necessary to justify an increase.’  In conclusion, the report indicated, quote, “It appears to me that there continue to be major differences between the two parties on the path forward for what the resource mix (generation and transmission) should be, and deployment schedule for those resources should be for the country. This has led to some of the disputes at hand. It would behove both parties to have a robust dialogue at the highest levels to resolve the differences where possible.” End of quote.  The full document is now available on the PUC website.  The commission is welcoming feedback on the document up until September 26.