Emera’s second quarter management discussion and analysis reveals a double whammy to Grand Bahama Power Company (GBPC), as the adverse effects of COVID-19 entered the picture soon after the destruction to the company’s infrastructure by Hurricane Dorian almost one year ago.
According to Emera, those impacts on GBPC, as well as the COVID-19 impact on Barbados Light and Power Company Limited (BLPC), led to a lower earnings contribution from Caribbean utilities in both the first and second quarters.
Emera added that its operating revenues decreased $209 million in the second quarter of 2020, compared to the same quarter in 2019.
“Absent increased mark-to-market losses of $48 million, operating revenues decreased $161 million due to a $27 million decrease in the ‘other electric utilities’ segment, mainly due to lower fuel revenue as a result of lower fuel prices, the impact of the COVID-19 pandemic at GBPC and BLPC and the impact of Hurricane Dorian at GBPC,” the document states.
The impact of the COVID-19 pandemic and Dorian at GBPC contributed to a decrease in Emera’s operating revenues compared to 2019. The impacts of the pandemic and hurricane on GBPC also contributed to a decrease in the company’s operating revenues by $72 million to $69 million in the second quarter of 2020, compared to $141 million during the same period last year.
“The impact of COVID-19 on GBPC is expected to be partially offset by recovery of load following Hurricane Dorian,” Emera states.
“On September 1, 2019, Hurricane Dorian struck Grand Bahama, causing significant damage across the island. In January 2020, the GBPA approved the recovery of approximately US$15 million of restoration costs related to GBPC’s self-insured assets.
“As of June 30, 2020, US$14 million of these costs were incurred and recorded as a regulatory asset. Recovery of the regulatory asset, due to start on April 1, 2020, has been temporarily suspended as a result of the economic impacts of COVID-19 on Grand Bahama. This recovery is now expected to start on October 1, 2020.”