Power consumption and development fuels CUC

(CNS Business): CUC’s profits fell in the third quarter of this year by half a million dollars compared to last year due to higher depreciation and finance charges the company expected to sustain after completing its new generator project in June. The loses were partially offset by higher electricity sales revenue, the firm stated in the recently released report on results. Net earnings for the three months ended 30 September 2016 were $7.4 million, compared to net earnings of $7.9 million in 2015.

CUC grew its customer base, with 463 more clients connected to the grid, a 2% growth on September 2015. Alongside the increase in consumption, the firm said it benefitted from larger commercial development and enjoyed much lower fuel costs, paying an average price per imperial gallon of $2.31, compared to $2.93 for the Third Quarter 2015.

But fuel costs were also helped by the increased efficiency of the new generator, resulting in the best fuel “ever achieved in the company’s history” and $1.1 million lower fuel costs to customers.

President and CEO of CUC, Richard Hew, said electricity sales and earnings remained strong and the increase in costs were down to investment.

“This reflects the financing and depreciation charges related to the significant investment in the new Generation Plant,” Hew stated. “The company completed and successfully integrated the new plant in time to serve a record system demand of 103.4 MW experienced in July. As well as providing reliable power, the new plant also delivered on the promise of higher fuel efficiency, reducing fuel costs to our customers. CUC remains committed to providing least cost, safe, and reliable electricity service to our customers,” he added.

Meanwhile, the 5 MW Solar Project at Bodden Town is behind schedule. CUC said it has substantially completed the interconnection facilities for the project including a new 13 Kilovolts line but the developer has put back completion to the Second Quarter 2017.

CUC has also begun an integrated resource plan study to find a portfolio of energy resources for the future local market.

“The company’s goal is to ensure that all energy options are explored before decisions are made on what the grid can accommodate in a safe, reliable and efficient manner,” officials stated in the quarterly report. The firm also revealed that the Advanced Metering Infrastructure (AMI) project is now 95% completed with the full roll-out expected by the end of the year.

With government plans to introduced the utilities commission and a new regime regarding regulation for power, water and communications, CUC said it would not materially affect its licences or business.

Tags: CUC

Category: Local Business, Utilities