So I took a good jog from my residence on my way to Tennis De Mesa practice and decided to stop by Ardenne High School for the OUR Public Forum on the JPS 2014 – 2019 Rate Case Submission.
Donning my replica Calabar High School Jersey, shorts and red soccer socks, I was not exactly dressed like all the others present.
Upon arrival I ran into the former President of the Jamaica Solar Energy Association Roger Chang and had a small chat while the event was just appearing to begin and introduce the first speaker.
The first speaker was that of JPS CEO Kelly Tomblin. While sitting there and trying to understand what was her explanation or reasoning behind the subject of the forum.
I could not help but comment that she was basically rambling and nothing short of total babble. Nothing she said or shortly after that the second speaker said, shed any light on the subject at hand.
What appeared to be half way through the second speaker’s speech I decided to split the scene and head to my sporting practice session instead.
SHOULD THEY GET A INCREASE?
For starters one should check out and read the Office of Utilities Regulation JPS 2014 – 2019 Rate Case Submission Summary Report.
I for one am not concerned about the token small percentage of clients who will see a rate reduction, or for that matter a small section of the public that may not be affected. As there are several section regarding the topic at hand.
EXCERPTS FROM THE JPS 2014 – 2019 RATE CASE SUBMISSION
I. Residential (Rate 10)
JPS is proposing to increase the residential tariff, on average, by 21%.
The first tier (customers with monthly consumption < 100 kWh) that includes mainly
low-income families will receive an average tariff increase of 17%. The number of
residential customers affected by this increase is about 220,000 customers, representing
41% of the residential class.1
II. General Service (Rate 20)
JPS is proposing an increase of 15% on average for customers with consumption below
7,500 kWh per month. This impacts approximately 98% of the Rate 20 customers who
comprise 70% of the total energy sales for that rate class.
In line with the results of the cost of service study and taking into consideration the Best
Alternative Option (BAO) for customers with monthly consumption > 7,500, JPS is
recommending an amendment to the tariffs that results in a 6% decrease on average.
This impacts 2% of the R20 customers who comprise 30% of the total energy sales for
that rate class.
III. Commercial and Industrial (Rate 40 and Rate 50)
JPS is proposing to reduce the overall cost to this customer class by on the average
WHAT DOES IT REALLY MEAN?
Well from my perspective of course, this means exactly what is stated above will be the outcome. But looking deeper I truly think JPS does not deserve any rate increase as they are incompetent in running an efficient power and light company.
My street lights are not working for years and are poorly lit. My computer was damaged years ago after a series of transformer exploded every time there was light rain or wind. And of course there was no compensation for the latter, nor are there any attempts by JPS to reverse the KSAC new system of making residents pay to fix broken street lights.
However from a business perspective, for anyone in solar power a rate increase would make not only JPS super expensive solar wind product more affordable. But it will also make all other solar players in the market products extremely attractive when the new rates are applied for those who it will affect in a negative manner.
So to the O.U.R feel free to give the JPS as much rate increase as they demand, as this will only force more clients to switch to solar energy. Funny the CEO of JPS stated not in her own words; that the more people come off the grid the more it will cost the remainder of the users on the grid.
This is going to happen without a doubt, so how will the EWI and JPS along with the GOJ be able to operate at a profit after the implementation of the new 381 MW LNG power plant(s) that is alleged to cost USD700 million while client base shrinks as they shift to solar?