Abstract
The Electricity Disaster Fund Rules of Procedure became effective on August 1, 2008. Among the features in the rules is a provision for a deductible on claims against the Fund equivalent to 0.5% of Net Book Value (NBV) of its transmission
and distribution (T&D) assets.
Following the publication of the Rules JPS registered an objection to the level and application of the deductible. As such the Office of Utilities (OUR) undertook a review of this provision.
In addition, in the processing of recent claims two other issues have emerged with respect to the Fund:
- the treatment of opportunity costs when there are delays in the processing of the Claim;
- the need for provision to address the engagement of Loss Adjusters and the payment for their services from the Fund.
After a thorough review of the issues the Office made its determination keeping in focus the principles of efficiency, fairness and prudence.
The decisions and the rationale that guided them are set out in this Determination.
