ICD Utilities

The principal business activity of ICD Utilities Limited (“ICDU”) is to act as a holding company for the purpose of ownership of a 50 percent interest in Grand Bahama Power Company Limited (“GBPC”).

In September 2008, Emera Incorporated (“Emera”) purchased a 50 percent interest in ICDU and in December 2010, through one of its subsidiaries, Emera Caribbean Holdings Limited, purchased the remaining 50 percent interest in GBPC and an additional 10.7 percent interest in ICDU.

GBPC is a vertically-integrated utility and sole provider of electricity on Grand Bahama Island. It was incorporated on April 18, 2001 under
the laws of the Commonwealth of The Bahamas. Prior to this, the Company operated as Freeport Power Company Limited. GBPC owns
approximately 98 megawatts (“MW”) of oil-fired generation, 138 kilometres of transmission facilities and 860 kilometres of distribution
facilities, and has a workforce of approximately 169 people. As of December 31, 2015, the Company serviced approximately 19,000
customers, of whom approximately 80 percent were residential customers.

GBPC is regulated by the Grand Bahama Port Authority Limited (the “GBPA” or “Port Authority”), which has granted
it a licensed, regulated and exclusive franchise to generate, transmit and distribute electricity on the island until 2054. GBPC’s approved
regulated return on rate base for 2014 and 2015 was 10.0 percent and is 8.8 percent for 2016 through 2018. GBPC has a fuel pass through
mechanism which recovers the cost of fuel.

In 2013, GBPC and the GBPA finalized an Operating Protocol and Regulatory Framework Agreement.

The regulatory rate structure consists of two components:

  • a base rate intended to recover GBPC’s operating expenses, depreciation and return on capital investment; and
  • a fuel charge intended to recover all of GBPC’s fuel costs.

As a component of its regulatory agreement with the GBPA, GBPC has an earnings share mechanism to allow for earnings above or below
its approved return on rate base to be deferred to a regulatory asset or liability at the rate of 50 percent of amounts below a return on rate
base, and 50 percent of amounts above return on rate base respectively at the rate of 50 percent of amounts below one percent below
return on rate base, and 50 percent of amounts above one percent above return on rate base respectively.

In previous years, ICDU has mailed a copy of the annual report to its shareholders. The ICDU Annual Report is now available online and replaces the mailing of physical copies of the annual report to all shareholders. A PDF version of the annual report is available for download by clicking on the link below. Should you require a printed copy of the annual report, you may obtain one free of charge by contacting our registrar and transfer agent, Bahamas Central Securities Depository, or by visiting the office of GBPC.

Click here to see our 2016 Annual Report (PDF)