Two weeks ago, the Public Utilities Commission told BEL it could not approve an average 13% increase. But that was just what’s called an initial decision and it will be months before the process of rate setting is complete. BEL has objected to that decision by the deadline which was yesterday.
The objection notes that the PUC has basically moved the goalposts. That’s because BEL argues that the rate setting method was changed during the review process. And more than that, BEL claims it was applied to pervious years, and had the effect of reversing previous decisions.
BEL’s objection also notes that the cost of power continues to soar and will likely surpass all projections. According to BEL this creates a cash flow crisis – so much so that the company is currently violating the terms of three of its loans – two of which are guaranteed by government. And, BEL also complains that the 8.5% rate of return on investment that the PUC has ok’d is far from satisfactory because it is lower than the prime lending rate.
So now that BEL has objected, the PUC has until the 22nd of this month to appoint an independent expert. A final decision is due at the end of June.
