LISTED FOR TRADING IN UNITED STATES FUNDS ON THE TORONTO STOCK
EXCHANGE/TRADING SYMBOL: CUP.U
GRAND CAYMAN, Cayman Islands, July 24 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or "the Company") today announced that it will formally request expressions of interest from qualified wind generation developers for wind generation project of up to 10 megaWatt ("MW") on the island of Grand Cayman, Cayman Islands. A formal Request for Expressions of Interest will be posted on the CUC website which can be found at www.cuc.ky. Expressions of interest should be directed to Andrew Small, Vice President of Transmission and Distribution.
CUC will consider each alternative on its own merits and may select more than one party with whom to pursue further discussion. Depending on the outcome of those discussions, CUC will enter one or more Power Purchase Agreements ("PPA") with Independent Power Producers ("IPP") to purchase all available generation from each such party. The Electricity Regulatory Authority ("ERA") has endorsed this initiative and any PPA or generation licence arising from the initiative will be subject to ERA approval.
An interested party will be required to undertake further wind studies to supplement CUC's existing data, complete an environmental impact study, provide detailed site, civil, electrical and mechanical designs, and undertake other work to procure, install, commission and confirm reliability of the generation capacity. The IPP will also operate the facility.
In 2003, CUC completed a 12 month, two-site wind study with the support of an independent consultant. At that time, wind generation was not considered viable based on the measured wind intensity and duration and the lower cost of the prevailing diesel generation. CUC believes that this source of energy may now prove viable with reasonable assumptions regarding future fuel prices, capital costs and operating costs. The wind measurement data arising from the 2003 study will be made available to qualified interested parties.
CUC currently relies upon diesel generation to produce electricity for Grand Cayman. CUC's power system is comprised of 17 generating units (15 diesel and two gas turbines) with a combined capacity of 136.6 megaWatts. Generation expansion planning by the Company is based mainly on historical growth trends and planned major commercial developments. In addition, limits prescribed by CUC's Licence with the Cayman Islands Government dictate the minimum and maximum reserve generating capacity that the Company must maintain to ensure a reliable supply of electricity after allowance for breakdown and scheduled maintenance.
The Company's transmission and distribution (T&D) system is comprised of seven major transformer substations, approximately 277 miles of overhead high-voltage (69 kilovolts and 13 kilovolts) T&D lines and 14 miles of high-voltage submarine cable in Grand Cayman. The T&D lines and substations are designed for high winds and flooding that might result from a hurricane.
In April of 2008, CUC signed a 20 year Electricity Transmission and Distribution Licence which provides for the purchase of non-firm renewable generation from sources such as wind.
Richard Hew, President and Chief Executive Officer of CUC stated, "We are pleased under our new licence to be able to undertake this step towards offsetting the island's dependence on fossil fuels for the generation of power." He added, "While we do not foresee a significant consumer rate reduction from early wind projects, we do expect to prove the technical viability of this energy source and establish a basis on which we can stabilize power costs through expansion of renewable capacity."
CUC is actively investigating other alternate energy means including ocean thermal energy conversion ("OTEC") and photovoltaics and has recently proposed a rate structure for consumer owned renewable energy to the Cayman Islands Electricity Regulatory Authority.
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 by their very nature and are subject to certain risks and uncertainties that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to 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. 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.
%SEDAR: 00002251E