This submission is made in relation to the annual Performance-Based Rate-Making (PBRM) tariff adjustment filing for 2016, in accordance with the Electricity Licence 2016 (the Licence), Schedule 3, Paragraph 43, which states:
“The Licensee shall make annual filings to the Office at least sixty (60) days prior to the Adjustment Date. These filings shall include the support for the performance indices, the inflation and the proposed Non-Fuel Base Rates for electricity, and other information as may be necessary to support such filings….”
In accordance with the Licence, the OUR’s January 7, 2014 Determination Notice and Determination Notice Addendum 1 and the OUR’s 2015 Annual Tariff Adjustment Determination Notice, the 2016 annual non-fuel tariff adjustment will incorporate changes in relation to the annual inflation adjustment, the resetting of the new foreign exchange rate but will not include any adjustments for either the Q factor or the Z factor.
The 2016 Annual Adjustment filing is set against the background of a new Electricity Licence that was established in January 2016 following negotiations between JPS, the Ministry of Science, Energy and Technology, and the Energy Sector Enterprise Team. Several new parameters were introduced in the Licence. In the absence of a consensus between the OUR and JPS on the values of these parameters, the JPS is proposing its position on the setting of these parameters.
JPS’ position is informed by its interpretation of the new Licence, by due consideration to past precedence that has been set by Determinations of the OUR, as well as consideration to the impact on our customers and the energy sector at large.