Cayman Islands Electricity Regulatory Authority ("ERA") Announces Cancellation of 36 MegaWatt Capacity Expansion Solicitation
Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC"or "the Company") is listed for trading in United States dollars on the Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, July 15, 2013 /CNW/ - The Cayman Islands Electricity Regulatory Authority (ERA) announced today that, in its view, as a result of unavoidable and unforeseen delays, the timetable and various milestones provided for in the previously initiated 36 MegaWatt ("MW") capacity expansion solicitation cannot now be achieved and it has taken the decision to cancel the solicitation process.
The solicitation had sought 18 MW of additional capacity in 2014 driven primarily by the upcoming retirements of some of the Company's generating units and a further 18 MW for as late as 2017, with the timing dependent on growth in demand for electricity based on a Certificate of Need submitted by CUC in November 2011.
CUC President and Chief Executive Officer, Richard Hew stated that, "CUC remains committed to providing a reliable electricity service to Grand Cayman. The need for additional firm generating capacity remains and in light of the ERA's decision to cancel the solicitation, we will explore all cost effective options with the ERA, including temporary generation solutions, to meet reserve margin requirements for the summer of 2014 and until those firm capacity needs can be met."
CUC provides electricity to Grand Cayman, Cayman Islands, under a non-exclusive Electricity Generation Licence expiring in 2029 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. Further information is available at www.cuc-cayman.com.
Caribbean Utilities Company, Ltd. ("CUC" or "the Company"), on occasion, includes forward-looking statements in its media releases, Canadian securities regulatory authorities filings, shareholder reports and other communications. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward-looking statements are based on underlying assumptions and management's beliefs, estimates and opinions, and are subject to certain risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather conditions. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
SOURCE Caribbean Utilities Company, Ltd.