As we told you last night, the Public Utilities Commission denied BEL's request for an increase in electricity rates and instead ordered a decrease
The new rates will take effect on January first and last for the Full Tariff Period of July 1, 2020, to June 30, 2024.
At a press conference today, the Pic Chairman explained that the decrease has to do with a lower cost of power principally from Mexico:
John Avery, Chairman - PUC
"Basically like I said, the changes are that we reduce the approved investments marginally compared to the initial decision. We've reduced the cost of power significantly and then we made some provisions where BEL can start to recover the $8 million that shortfall for the last year that finished. Those basically resulted in the reduction. I think the average rate we had approved in the initial decision was 42.42 cents thereabouts. Now we are 40.32 which is the average. The net effect is that starting January the rates should go down by just under 2.9% from the current rates."
In a statement issued today, BEL says it "accepts the PUC's Final Decision to reduce rates at this time as it is in line with our own assessment in light of the impacts of COVID-19 pandemic on global energy prices."
