Concurrently with being embroiled in increasingly contentious public exchanges with union executives over contract negotiations that some considered complete, Bahamas Electricity Corporation (BEC) Executive Chairman Leslie Miller continues to insist that the principle way to save taxpayers money on electricity generated by BEC is a new plant at Clifton. Miller says it is simply a "must".
Miller told Guardian Business during an earlier interview that a new plant would cost around $200 million. He elaborated on the point late last week.
In 2013, Miller said, BEC spent $386 million on fuel. He has long asserted that Clifton Pier should be the government's focal point in terms of electricity generation: The "bunker C" fuel burned at Clifton is 33 percent cheaper than the diesel that powers Blue Hills.
"The machines at Clifton would use less fuel, in addition to the (cheaper fuel) cost. That would save us anywhere from $100 million to $125 million per annum, just on fuel," he said.
Miller also said that when the six machines failed a week ago, if the corporation had spinning reserves of at least 15 percent to 20 percent - that is, reserve power available to the electricity network through increasing the power output of generators already connected to the system - it is likely that a significant percentage of the power void could have been filled.
"In New Providence, we don't have any spinning reserves," he noted, however.
"Mind you, we have the capacity, because we are supposed to be able to generate in excess of 300 megawatts, and the demand in Nassau at its peak is about 230 - 240 mW during the summer," Miller said.
The chairman noted that the corporation employs some machines that have been in use for almost 40 years, and are almost obsolete.
"We must put up a new plant, because every day that we use Blue Hill at full capacity that costs us an extra $250,000 a day - every four days, you're spending a million dollars on fuel that you wouldn't be spending if Clifton was running (as best it could)," he said. "This mix should be 85% Clifton and 15% Blue Hills only when you've reached your maximum capacity at Clifton. That's the ideal situation. That's where BEC needs to get itself now, where we're generating 85% at Clifton, and 15% at Blue Hills when necessary."
Miller's comments about the need for a new plant have been echoed lately by BEC union executives, who suggest that rather than pay attention to relatively small expenses like employee bonuses for the corporation's nearly 1,200 employees - or what some might consider excessive overtime costs - the government's focus ought to be on construction of a new power plant.
The union executives say the old machines practically mandate overtime with the need to maintain and in some cases "just keep them going." So despite the apparent contention, Miller and the union agree on this most costly of solutions: a new plant for BEC, both say, is a must.
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