Investment Planning and Tariff Study
FortisTCI was negotiating its regulatory framework with the Turks and Caicos Islands Government (TCIG) while the Government was also considering developing a multisector regulatory agency. FortisTCI hired K&M to assist them in writing a response to Kairi Consultants, a consulting firm hired by TCIG to assess the existing regulatory frameworks for public utilities. K&M prepared a Report on Reform of the Regulatory Framework Applicable to FortisTCI. This report described FortisTCI and its applicable regulatory framework, benchmarked regulatory frameworks in other Caribbean jurisdictions, and provided recommendations for the relevant framework for regulating FortisTCI.
FortisTCI Limited (FortisTCI)—the electricity utility in Turks and Caicos with an aggregate generation capacity of 90.7MW and over 15,000 customers—has retained K&M Advisors to conduct a vigorous cost of service study. FortisTCI has seven service areas with multiple customer categories. Working closely with the FortisTCI team, K&M will develop a dynamic financial model that will calculate the cost of service and establish cost reflective rates by customer category for each service area. The model will calculate the cost of service on a historical basis and on a forward-looking basis using projections for 2021 to 2025. K&M will present the cost of service and proposed rates by customer category to the executive team at FortisTCI and provide recommendations resulting from the work undertaken.
K&M was engaged by FortisTCI Limited to provide an in-depth review of proposed new rates and charges related to the proposed renewable energy (RE) legislation. After a comprehensive review, the K&M team proposed rates for electric vehicle charging, a model for rates for PPAs, RE feed-in-tariffs, retail rates and energy charge. K&M also validated the initial set of rates and charges for the Demand Charge Scheme (Demand Rate, Energy Rate) and identified language in the draft RE legislation necessary to support the implementation of proposed new rates and charges. K&M provided overall recommendations on rate designs, supporting policy, financial impact to the utility, fairness of incentive mechanisms, potential risks and proposed mitigations.
FortisTCI (FTCI), the electricity utility in the Turks and Caicos Islands, contracted K&M to review and advise on draft legislation for renewable energy (RE). This included reviewing and marking up the draft amendment to the Electricity Ordinance to ensure proposed mechanisms for introducing RE were complete and internally coherent. The proposed mechanisms included licenses for independent power producers, integrated resource plans, interconnection requirements and standards, feed-in-tariffs, and a new tariff structure for distributed generation. K&M also submitted a report identifying potential risks and making recommendations to improve the consistency, adequacy, and reasonableness of the provisions in the draft bill.