Full Tariff Review Proceeding Public Notice

Posted: 01 Oct 2009 in the Corporate News Category

PUBLIC NOTICE

BWSL FULL TARIFF REVIEW PROCEEDING SUBMISSION

BELIZE WATER SERVICES LIMITED (BWSL) HEREBY SERVES NOTICE this day, October 1, 2009 that, in accordance with the Water and Sewerage (Tariffs) Byelaws (Statutory Instrument 67 of 2002) as amended by Statutory Instrument 102 of 2004 and Statutory Instrument 89 of 2008, it has made its submission to the PUC for a Full Tariff Review Proceeding (FTRP) for the determination of Rates and Tariffs and a Business Plan(BWS Business Review Reprt 2010-2015) to be approved for the Full Tariff Period (FTP), which runs from April 1, 2010 through March 31, 2015.

Summary of Issues
The Business Plan submitted by BWSL provides for some $92.5 million in investments for the provision of water services over the Full Tariff Period (FTP) and for some $8.6 million in investments for the provision of sewer services in its authorized areas of supply, and some $14.9 million in other investments, for a total of $116.1 million. BWSL expects some $20.8 million of this total to be funded by Developers and some $44.3 million to be funded by debt.

The Business Plan also projects operational expenditures and other costs related to the provision of services ranging from $33.6 million for the first Annual Tariff Period (ATP) of the Full Tariff Period (FTP) to $38.3 million for the last Annual Tariff Period (ATP).

As a consequence of the proposed investments and expected expenditures and costs contained in the Business Plan, BWSL has proposed adjustments to the approved Rates and Tariffs that would result in an overall average increase of 25.0% in order for the company to generate enough revenues to support the proposed Business Plan.

The Process
a) The PUC will hold a meeting on Tuesday, October 13 at the Princess Hotel and Casino at 7 pm, at which the Licensee and all interested parties may participate.(Public Hearing Presentation of Belize Water Service)
b) Interested parties may submit written comments and information on the Licensee's proposals by November 2, 2009.
c) The PUC will deliver its Initial Decision no later than November 17, 2009.
d) The Licensee and interested parties who represent 10% of the annual amount of water supplied may submit written comments on the decision within fifteen days of the delivery of the Initial Decision.
e) Where there is no objection, the PUC will deliver a Final Decision adopting its Initial Decision.
f) Where there is objection by the Licensee or interested parties representing 10% of the annual amount of water supplied, the PUC will appoint an Independent Expert within 15 days of such objection, to review the Schedules and Tariffs approved in the Initial Decision.
g) Where the Licensee objects in writing to the Independent Expert proposed by the PUC, and if the PUC and the Licensee cannot agree on an
Independent Expert, the International Chamber of Commerce shall appoint one within 14 days of the receipt of the Licensee's objection.
h) The Independent Expert will issue a written report within 30 days of his appointment.
i) The Licensee and interested parties who represent 10% of the annual amount of water supplied have 20 days to submit comments on the report.
j) Where the comments challenge the conclusions of the report, the PUC shall within 15 days afford the licensee and other interested parties an opportunity to be heard.
k) The PUC will deliver a Final Decision no later than 50 days after the delivery of the Independent Expert's report.

Comments
a) Comments in writing may be sent to the Public Utilities Commission, P.O. Box 300, 41 Gabourel Lane, Belize City; or emailed to info@puc.bz.
b) Comments/information filed with the PUC on the Initial Decision shall be accompanied by a sworn affidavit on statements or information purported to be factual.
c) BWSL and interested parties may request confidential treatment for any commercially sensitve information submitted to the PUC in accordance with the Byelaws.

Delivery of Final Decision
The PUC is expected to deliver its Final Decision on November 17, 2009, if there are objections to the Initial Decision; on March 10, 2010, if there is agreement between BWSL and the PUC on the appointment of an Independent Expert if required; or on March 23, 2010 if an Independent Expert has to be appointed by the International Chamber of Commerce.

Notes
a) Throughout the FTRP, the PUC and BWSL shall maintain an updated Schedule of events which is to be made available to the public.
b) The Schedules and Tariffs approved by the PUC shall become effective on April 1, 2010, regardless of the date on which the PUC's Final Decision is issued.

Public Access to Information
Members of the public may obtain up-to-date information on the schedule of the FTRP at the offices of the PUC and BWSL.
The proposed Business Plan is available at BWSL's headquarters, 7 Central American Boulevard, Belize City and at branches countrywide, and may be viewed at the office of the Public Utilities Commission, 41 Gabourel Lane, Belize City.