For that reason, today, this blog is reproducing a news story from Yahoo News about the signing of an agreement between the Bahamian government and the U.S. power company, PowerSecure, to manage Bahamas Power and Light - a special purpose vehicle set up earlier this year to enable private-sector participation in the generation and distribution of electricity in the Bahamas.
It is a wholly-owned subsidiary of the Bahamas Electricity Corporation (BEC).
The agreement between the BEC and PowerSecure International, is just the sort of win-win management services agreement that the government of Ghana ought to secure for the ECG.
Civil society organisations such as #OccupyGhana, must study the BEC/PowerSecure International deal in detail if possible - so that if need be they can go to court: if the government enters into an inimical management services agreement for the ECG that does not benefit electricity consumers in Ghana.
To start with, civil society organisations must ask our leaders precisely why they are proposing to lock the ECG into a long-spanning management services contract that will last for 25 years - when PowerSecure was quite happy to accept a 5-year agreement to manage the BEC.
It is also worth pointing out that a key objective for the Bahamian government is tariff reduction for electricity consumers. We should demand same in any management services agreement for the ECG.
Only an agreement that aims to make the ECG - which after all has electricity meters in premises across the nation - a global leader in the provision of rooftop solar systems with storage and off-grid community solar systems with storage, will make affordable electricity possible in Ghana. That is why the eventual winner of the bid to manage the ECG should be strong in renewables.
The culled Yahoo News story is entitled: "PowerSecure and Government of Bahamas sign Management Services Agreement For Bahamas Power and Light".
The second culled piece that this blog is posting today, is from the online newspaper, Bahamas Press. It is a statement issued by the Hon. Philip Davis, the Bahamian deputy prime minister, on the selection of PowerSecure International to manage the new BEC subsidiary, Bahamas Power and Light.
Please read on:
"PowerSecure and Government of Bahamas Sign Management Services Agreement For Bahamas Power and Light.
-- Milestone in reform of Bahamas energy sector --
-- Agreement targets customer cost reductions and reliability improvements --
-- Improved customer service and renewable energy key components of plan --
-- Rate reduction bond will replace legacy debt and enable new investment in infrastructure to reduce costs --
-- 35-year utility veteran Jeff Wallace appointed CEO of BPL --
PowerSecure International, Inc.
February 9, 2016 6:15 AM
WAKE FOREST, N.C., Feb. 9, 2016 /PRNewswire/ -- PowerSecure (POWR)
announced today that the company has signed a Management Services
Agreement (MSA) with the government of The Bahamas under
which PowerSecure will provide its management services to Bahamas Power
and Light (BPL) for the next five years.
The MSA includes a business plan which outlines
cost-reduction and reliability targets along with renewable energy and
customer service initiatives for New Providence and the Family Islands.
"It
is an honor and a blessing to be selected to serve the Bahamian people.
PowerSecure team members, especially our chief utility officer, Ronnie
Brannen, and our chief sales officer, Mark Martyak, have spent hundreds
of hours on the ground in New Providence and across all of the Family
Islands rigorously assessing the current condition of existing assets
and developing renewable energy and other exciting approaches aimed at
improving the efficiency and reliability of electricity for The Bahamas
for years to come," said Sidney Hinton, chief executive officer of
PowerSecure.
Under the terms of the MSA, in addition to PowerSecure receiving a baseline annual management fee of $2 million, BPL must achieve pre-defined key performance indicators (KPIs) related to cost reductions, reliability improvements and customer service enhancements in order for PowerSecure to receive potential additional performance-based compensation of up to 150 percent of the management fee per year.
"Today
is an exciting new day in The Bahamas as we progress into a formal
relationship with PowerSecure to implement a robust business plan with
the goal to reduce customer electricity costs and provide increased
reliability," said Nathaniel Beneby, chairman of the board for BPL.
Recently
passed energy reform legislation by The Bahamas provided for the
incorporation of BPL, as a wholly-owned subsidiary of Bahamas
Electricity Corporation (BEC), to provide safe and secure electrical
services for The Bahamas in a modernized and cost-effective manner. The
new legislation also calls for the issuance of a rate reduction bond,
which BPL intends to be utilized to refinance BEC's existing legacy debt
and to fund infrastructure and efficiency investments for BPL
which would result in a net reduction to customer electricity bills.
Under the terms of the MSA, in addition to PowerSecure receiving a baseline annual management fee of $2 million, BPL must achieve pre-defined key performance indicators (KPIs) related to cost reductions, reliability improvements and customer service enhancements in order for PowerSecure to receive potential additional performance-based compensation of up to 150 percent of the management fee per year.
-
The best-run public companies in the Research Triangle area
American City Business Journals q 5 days ago
-
POWERSECURE INTERNATIONAL, INC. Files SEC form 8-K, Termination of a Material Definitive Agreement
EDGAR Online 22 days ago
"I look forward to meeting the team at BPL and working towards creating a world-class utility delivering highly-reliable, low-cost power to the Bahamian people and fostering a culture of excellence at BPL that allows our employees to grow professionally and contribute to a thriving workplace," Wallace said.
About PowerSecure
The company is a pioneer in developing IDG® power systems with sophisticated smart grid capabilities, including the ability to 1) forecast electricity demand and electronically deploy the systems to deliver more efficient, and environmentally friendly, power at peak power times, 2) provide utilities with dedicated electric power generation capacity to utilize for demand response purposes and 3) provide customers with the most dependable standby power in the industry. Its proprietary distributed generation system designs utilize a range of technologies to deliver power, including renewables.
The company's energy efficiency products and services include energy efficient lighting solutions that utilize LED technologies to improve lighting quality, and the design, installation and maintenance of energy conservation measures which we offer, primarily as a subcontractor, to large energy service company providers, called ESCOs, for the benefit of commercial, industrial and institutional customers as end users and directly to retailers.
PowerSecure also provides electric utilities with transmission and distribution infrastructure maintenance and construction services, and engineering and regulatory consulting services. Additional information is available at www.powersecure.com.
Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of
and made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
all statements other than statements of historical facts, including but
not limited to the future performance of BPL, the future condition,
efficiency and reliability of the electricity industry in The Bahamas
and the achievement of the KPIs and incentive compensation under the
MSA; the outlook for the company's growth and profitability and its
future revenues, earnings, margins, cash resources and cash flow and
other financial and operating information and data; the company's future
business operations, strategies and prospects; and all other statements
concerning the plans, intentions, expectations, projections, hopes,
beliefs, objectives, goals and strategies of management, including
statements about other future financial and non-financial items,
performance or events and about present and future products, services,
technologies and businesses; and statements of assumptions underlying
the foregoing.
Forward-looking
statements are not guarantees of future performance or events and are
subject to a number of known and unknown risks, uncertainties and other
factors that are difficult to predict and could cause actual results to
differ materially from those expressed, projected or implied by such
forward-looking statements. Important risks, uncertainties and other
factors include, but are not limited to, the on-going uncertainty and
inconsistency in the economy, financial markets and business markets and
the effects thereof on the company's markets and customers, the demand
for its products and services, and the company's access to capital; the
economic and market uncertainties in The Bahamas generally and those
specific to the electricity markets; the ability of BPL to achieve the
anticipated KPIs and performance targets, including cost-reductions,
efficiencies, and reliability in the electricity market; the ability of
BPL to raise sufficient capital to refinance its existing debt and to
finance future initiatives; the ability of the Company to help BPL
achieve the targeted performance, operational, financial and other goals
under the MSA; changes in future legislation and regulations in The
Bahamas; the liability of the Company for damages under the MSA;
environmental risks in managing electricity and power generating
operations and businesses; the
effects of pending and future litigation, claims and disputes including
any future claims that might arise under the MSA or in connection with
the Company's actions or omissions in The Bahamas; and other risks,
uncertainties and other factors identified from time to time in its
reports filed with or furnished to the Securities and Exchange
Commission, including the company's most recent Annual Report on Form
10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K,
copies of which may be obtained by visiting the investor relations page
of the company's website at www.powersecure.com or the SEC's website at www.sec.gov.
Accordingly,
there is no assurance that the results expressed, projected or implied
by any forward-looking statements will be achieved, and readers are
cautioned not to place undue reliance on any forward-looking statements.
The forward-looking statements in this press release speak only as of
the date hereof and are based on the current plans, goals, objectives,
strategies, intentions, expectations and assumptions of, and the
information currently available to, management. The company assumes no
duty or obligation to update or revise any forward-looking statements
for any reason, whether as the result of changes in expectations, new
information, future events, conditions or circumstances or otherwise.
Contact:John Bluth
PowerSecure International, Inc.
(919) 453-2103.
PowerSecure International, Inc.
(919) 453-2103.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/powersecure-and-government-of-bahamas-sign-management-services-agreement-for-bahamas-power-and-light-300217101.html"
End of culled Yahoo News article.
"Breaking NEWS >>>> PowerSecure International Inc. is the new Management Company selected for BEC!
Finally Bahamians will get some relief!
Hon. Philip E. Davis, Q.C., M.P.
Deputy Prime Minister/Minister
30th April 201
MINISTRY OF WORKS AND URBAN DEVELOPMENT
Selection of Preferred Bidder for Management of The Bahamas Electricity Corporation
In the lead-up to the 2012 Elections, the Progressive Liberal Party, by its Charter for Governance, committed to reducing the country’s reliance on fossil fuels and to address the high cost of electricity to consumers. For many years now, consumers have to deal with extremely high electrical bills and far from satisfactory services from an inefficient and debt ridden Bahamas Electricity Corporation (BEC). The protracted and frequent blackouts of this week and last are constant reminders of the urgent need for reform of our electrical generation, transmission and distribution systems.It is common knowledge that the Government has been seeking a permanent solution to our challenged electrical systems and administration by way of a Request for Proposal (RFP) Process.
This solution proposes to create efficiencies, which will allow for
significant reductions in the cost of energy, increased energy security,
environmental responsibility, reliability, and increased
competitiveness as a country.
Today, I am very pleased to announce that, with the unanimous recommendation of the Task Force appointed to review the proposals and its financial advisors, KPMG Advisory Services, and technical advisors, DNV GL, and as a result of an extensive, robust, and patient process, the Government of The Bahamas has selected PowerSecure International, Inc. as the preferred bidder to manage the New BEC, both generation and transmission/distribution, for a period of five (5) years. This appointment is subject to the negotiation and finalisation of the management contract, the major terms of which have been agreed.
PowerSecure is a public company traded on the New York Stock Exchange (NYSE: POWR) and headquartered in Wake Forest, North Carolina. It has total assets of $265 million, shareholders’ equity of $156 million, trailing twelve month revenues of $257 million (to December 31, 2014 ) and market capitalisation of $301 million (April 29, 2015). It has grown considerably over the last several years posting on average over a 25% Compound Annual Growth Rate (CAGR). In addition, based on its investor presentations, it holds a strong contract backlog of $368 million. Indeed, since January 2014, it has announced more than $400 million in new business.
Today, I am very pleased to announce that, with the unanimous recommendation of the Task Force appointed to review the proposals and its financial advisors, KPMG Advisory Services, and technical advisors, DNV GL, and as a result of an extensive, robust, and patient process, the Government of The Bahamas has selected PowerSecure International, Inc. as the preferred bidder to manage the New BEC, both generation and transmission/distribution, for a period of five (5) years. This appointment is subject to the negotiation and finalisation of the management contract, the major terms of which have been agreed.
PowerSecure is a public company traded on the New York Stock Exchange (NYSE: POWR) and headquartered in Wake Forest, North Carolina. It has total assets of $265 million, shareholders’ equity of $156 million, trailing twelve month revenues of $257 million (to December 31, 2014 ) and market capitalisation of $301 million (April 29, 2015). It has grown considerably over the last several years posting on average over a 25% Compound Annual Growth Rate (CAGR). In addition, based on its investor presentations, it holds a strong contract backlog of $368 million. Indeed, since January 2014, it has announced more than $400 million in new business.
The company’s largest shareholder is Wellington Management Company, an investment manager with $900 billion under management. Other notable shareholders include Dimensional Fund Advisors, SRB Management, Blackrock Fund Advisors, Vanguard Group, AWM Investment Company, Becker Drapkin Management and other major, primarily US-based institutions and funds.
PowerSecure’s 33-year energy veteran and Founder, Mr. Sidney Hinton, serves as its President and CEO. Under his leadership, close to 1,000 employees across the United States operate and maintain approximately 1 GW of Distributed Generation capacity. It reported 98.4% reliability for these systems in 2014, which is one of the best in the industry. Its three-prong operations take in Utility Services (engineering and infrastructure solutions), Power Generation (distributed energy and solar installation and management) and Energy Efficiency (including production of its own LED lighting systems). The company serves many of the largest utilities in the United States.
PowerSecure specialises in Utility Scale Solar Power through its subsidiary PowerSecure Solar; and has provided both solar and storm hardening services to multiple utility customers. Of particular note is its efficient mobilisation of resources for every named storm in the US in the last 5 years. As recently as January this year, it was mobilised utility support during the severe weather and snowstorms in the Northern United States.
With its credits, the Government of The Bahamas is satisfied that PowerSecure has the technical and financial capacity required to manage the New BEC. We are satisfied that value will be extracted from the existing New Providence and Family Island generation, transmission and distribution assets and that the company can provide the advanced asset management, efficiency retrofits, improved operating schemes, fuel selection and purchasing schemes that are required to set the New BEC on course to profitability. We are very pleased that the company has the ability to manage the building of new, major generation in New Providence; as well as the ability to procure and/or manage the building of renewable energy projects in New Providence and on the Family Islands. In sum, and more importantly, we are satisfied that residents and commercial clients of the New BEC will have the customer experience that we all deserve.
This Government has never questioned the qualification and capability of BEC’s management and staff. We are keenly aware of their material challenges. With this in view, we are confident that the PowerSecure team, in consultation with experienced engineers at BEC, will collaborate effectively to plan, design, procure, and construct generation, transmission, distribution, substation projects, and utility communication projects for the New BEC.
We have always recognised and maintained that energy reform is absolutely critical to the economic development and wealth of our country. We have taken very deliberate steps in this regard. We have adopted the National Energy Policy, amended the Bahamas Electricity Act, and today, we embark on entrusting BEC’s management – NOT ownership – upon a company of excellent repute. Saint Augustine once said that “Patience is the companion of wisdom.” We have been very careful in this decision-making process. We have gained valuable insight during this process that can be utilised for the advancement of our energy sector. We are now ready to put this to use.
We sincerely thank those bidders that were not selected for their broad engagement, contribution to the process, professionalism and patient tolerance of the process. We especially thank our technical and financial advisors, and the Government Task Force, who have all undertaken extensive due diligence on the existing financial and operational conditions at BEC and all of the options put forward by bidders.
With confidence, we now look forward to the establishment of the New BEC under the supervision of PowerSecure. As promised, we are well on the way to delivering to our constituents a 100% Bahamian owned, world class electrical utility, offering its customers affordable and reliable power, and a tremendously improved customer service.
-END-"
End of culled content from the Bahamas Press.
No comments:
Post a Comment