Page 36 - CARILEC Electricity Tariff - December 2014
P. 36
Fuel Price
Hedging Fuel Supply Logistics And Fuel Alternatives
Name of Utility Impacts Of Fuel Price Volatility
Initiative(s) Challenges And Prospects
Adopted
capacity and reserve
quantities result in approx.
four shipments per year.
8. Single ocean berth subject to
weather delays (winter
storms/hurricanes).
9. Nine mile long single 6” un-
insulated/unheated pipeline
between terminal and utility
storage tanks used to transfer
HFO and diesel limiting
HFO viscosity.
Fuel accounts for more than 50% of
customer’s bills through the Fuel
-
BLPC Clause Adjustment. Volatility in the No -
price of fuel therefore influence the
demand for energy.
Customers’ bills fluctuate
accordingly, and as a direct result,
sales revenue increase when fuel - Propane gas
BVIEC No Wind & Solar
prices increase and likewise
decrease when fuel prices decrease.
Fuel arrives by ship. Suppliers are
Rapid Fuel Price increases and next to the seaport, where it is
subsequent electricity rate increases offloaded. Fuel is then piped via
CUC can cause unplanned hardships on a Yes underground pipeline to company Natural Gas
number of commercial and storage tanks. Associated
residential customers. challenges include rough weather
and occasional pipeline dig ins.
Fuel is delivered via tank trucks
Makes cash flow management more to our facility; one of 2 diesel
challenging; it also affect customers plants is located some 30 miles Geothermal
DOMLEC No
and result in increased high bill from the supplier’s facility with Solar by 2018
complaints. limited storage, therefore frequent
deliveries are required.
Exploring natural gas
There’s no deep water port in
as a potential
Providenciales resulting in
Impact on fuel cost recovery which alternative to diesel
multiple smaller ship
can be received negatively or but the costs and
FORTIS No deliveries which impacts the
positively by customers depending logistics do not make
base price components and
on the direction of the fuel price. it a good prospect at
efficiency of delivery. this time.
Negative due to the uncertainty it Financial Fuel is received via pipeline, very
Solar & CNG
GBPC causes, especially with industrial hedges on few challenges
customers. future
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