CUC sees 2 possible large customers

The Commonwealth Utilities Corp. has identified two large commercial customers that may potentially avail of its incentive rate program.

CUC executive director Alan Fletcher said these two large commercial customers are close to signing up and getting back into the CUC grid.

The Commonwealth Public Utilities Commission approved the incentive rate program on Sept. 26. Also known as the experimental tariff rider incentive rate, it is intended to lure large commercial customers to hook up to the CUC grid.

Fletcher said that CUC hopes to have the contract with these two customers done by this week or next week. He declined for now to name these potential customers.

Fletcher underscored the importance of bringing back all disconnected loads to CUC’s power grid, saying this will eventually lower the power cost for customers.

“Extra sales would have more revenue generation and would be much more beneficial, with the companies contributing to the community by hooking up to our grid,” he said.

In an earlier interview, Gov. Eloy S. Inos said he sees a possible increase in CUC’s revenue if large commercial customers return to CUC’s grid.

“That is the whole idea because we are trying to get them [back to the grid]. There is so much reserve that is available at CUC and we need to go out and sell the energy and generate income back into CUC so we can take care of its many needs,” Inos had said.

The incentive rate is available to large commercial customers locating, expanding, or returning their entire load to CUC’s grid and must remain as full CUC customers for a four-year term.

The contract is also open to new participants for a window of four months since the tariff’s approval in September.

Commercial customers are qualified for the new rate if they have a generation capacity of 400kW or greater and generating 90 percent or more of their annual electric needs; commercial customers that expand their existing facility that results in an increase in load of 200kW or greater or expand their hotel by 75 rooms or greater; or new commercial customers with electric generation capacity of 400kW or greater.

The four-year incentive rate will provide a reduction of 8.3 cents per kWh from CUC’s commercial electric base rate from the date the customer starts purchasing electricity.

The contract’s terms of agreement points out that it has to remain hooked to CUC for four years. One proviso added to the terms of agreement—in response to the comment from DFS—is that if CUC is unable to supply the entire load of the island’s applicants, applicants will have the right to terminate the contract.