B.E.L. says reduction will set back company by $5 Million

Sean Fuller

According to B.E.L.’s Senior Manager of Information and Communication Systems, Sean Fuller, the company supports the decision of the PUC, but it will impact operating margins.  That proposed rate reduction will save consumers almost fifteen million dollars in the upcoming year, but will set back the electricity company by five million dollars.

Sean Fuller, Sr. Mgr., Information & Communication Systems, B.E.L.

“Annually, in December, B.E.L. looks at the actual cost of power that we pay to independent power producers to determine whether or not there should be an adjustment in the rates to consumers.  2013 resulted in a very good year as far as the cost of power is concerned where it did not cost as much as was anticipated to buy power from these independent power producers to sell to consumers.  So obviously we had to make an application to the PUC as per the law to make an adjustment to the cost of power component of the mean electricity rate which in turn turned out to be a reduction in the cost of electricity to our consumers. The numbers we released in our press release was based on a twelve month, based on twelve month numbers.  B.E.L. manages our operations based on a twelve-month calendar period.  Our business plan and our budgets are based on twelve months so we simply reported on the effect of the additional one cents based on the twelve month period rather than a six months period, whereas the PUC’s decision is going to be between January and July of this year which is six months. The decision by B.E.L. in our response to the initial decision of the PUC and this interview is in no way to influence the independent decision of the PUC.  Whatever decision the PUC makes B.E.L. fully supports and will implement, especially if it means customers will see a reduction in their electricity bills.”

The proposed amendment will take effect on April first, 2014.