—Agreement targets significant 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
—New Board of Directors and senior management team installed to lead BPL
NASSAU, Bahamas, – February 8, 2016 – The government of The Bahamas and PowerSecure today signed a Management Services Agreement (MSA) that assigns PowerSecure management of Bahamas Power and Light (BPL) for the next five years.
The MSA includes a comprehensive, financial-grade business plan which outlines significant cost-reduction and reliability targets along with renewable energy and customer service initiatives for New Providence and the Family Islands.“Today is an exciting new day in The Bahamas as we progress into a formal relationship with PowerSecure to implement a robust business plan that will substantially reduce customer electricity costs and will provide increased reliability,” said Nathaniel Beneby, Chairman of the Board for BPL.
Recently passed energy reform legislation has 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 will be utilized to refinance BEC’s existing legacy debt and to fund infrastructure and efficiency investments for BPL which will result in a net reduction to customer electricity bills.
PowerSecure is a public company traded on the New York Stock Exchange (NYSE: POWR) and headquartered in Wake Forest, North Carolina. The company has trailing twelve month revenues of $375 million (to September 31, 2015), a contracted revenue backlog of $447 million (to October 20, 2015) and a market capitalisation of $241 million (to February 4, 2016). It has grown considerably over the last several years posting on average over a 25% compound annual growth rate.
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 percent reliability for these systems in 2014, which is one of the best in the industry. It has four operating segments: Utility Services (engineering and infrastructure solutions), Distributed Generation (distributed energy for backup power and peak shaving), Energy Efficiency (including production of its own LED lighting systems), and Solar Energy (EPC solar development). The company serves many of the largest utilities in the United States.
“It is an honour and a blessing to be selected to serve the Bahamian people. PowerSecure team members 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, meeting with BEC employees and developing improved approaches to save customers and BPL money, and to improve the efficiency and reliability of electricity for The Bahamas for years to come,” Hinton said.
Under the terms of the MSA, after receiving a baseline annual management fee, 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 any additional compensation.
The government has appointed a new Board of Directors (BOD) for BPL. This BPL Board of Directors consists of:
o Nathaniel Beneby, Chairman of the Board
o Donna Smith, Deputy Chairperson
o Deepak Bhatnagar, Executive Director
o Daphne Simmons
o Patricia Hermanns
o Andrew Rogers
Additionally, the BOD has appointed Jeff Wallace as the new CEO of BPL, effective immediately. Mr Wallace has more than 35 years of utility experience and has spent the past 10 years as the Vice President of Fuel Procurement for Southern Company, where he has been responsible for managing $7 billion in fuel procurement, planning and delivery programs for 85 power plants.
“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.
Mr. Kevin Basden, General Manager of BEC, has assumed his new role as the Consultant/ Advisor to the Board of Director and with his wealth of knowledge will guide the board and Executive Management team.
“We wish to thank Mr. Basden for his years of service to the Bahamas Electricity Corporation and are assured that he will be instrumental in helping to achieve BPL’s objectives,” said Mr. Beneby.
Mr. Deepak Bhatnagar, who has been leading the process of energy sector reform, will serve as Executive Director and will oversee the activities of BPL to ensure that PowerSecure delivers in accordance with the business plan.
With the MSA now in place, PowerSecure assumes management responsibility of BPL; however BPL- a subsidiary of BEC-consequently remains a 100% Bahamian-owned utility. Today is an exciting day for BPL and The Bahamas as the country takes an important step in continuing to improve its economy and building a foundation for long-term prosperity for the Bahamian people.
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