Energy Matters

Powering Up the Turks and Caicos Islands for a Sustainable Energy Future

Informing You of the Energy Matters Impacting You

As your trusted electricity provider and community partner, FortisTCI is committed to keeping you informed about the current regulatory energy matters that will impact your electricity service and costs. Over the last few months, we have conducted a series of Energy Matters community meetings with you, our valued customers, to share and explain important regulatory initiatives that will affect you in the future. Your understanding and participation in these matters is critical because reliable electricity powers our daily lives and fuels our dynamic, vibrant economy.

Keep Current On Energy Matters

As one of the Caribbean’s most reliable electricity providers committed to serving our customers with excellence, we are dedicated to powering a cleaner, more sustainable energy future throughout the Turks and Caicos Islands.

Proposal for Revised Electric Rates

Understanding Fuel Supply Chain Impacts on Electricity Costs

Understanding Your Electricity Bill

About the Renewable Energy and Resource Planning Bill (RERP Bill)

Multisector Public Utility Regulatory Agency

Staying Informed Together

A Message from Ruth Forbes

Thank you for trusting us to power your lives. As our nation continues to grow and evolve, we remain committed to keeping you, our valued customers, informed every step of the way. We’re all in this together, and ensuring you have reliable, safe, resilient, and sustainable least-cost electricity is our top priority. If you have questions or concerns, please reach out to us. Because energy matters to all of us.

-Ruth Forbes, President and CEO, FortisTCI

Proposal for Revised Electric Rates

To expand and maintain reliable electricity to power our growing nation, FortisTCI submitted a proposal for revised electric rates in February 2024. There’s been one general rate increase in 20 years for the majority of residential customers. The proposed 6% increase could mean an additional $2 to $15 per month on electricity bills.

FAQs on the Proposal

Q: Why does FortisTCI need an increase to electric rates?

A: Over the past few years, the TCI economy has experienced robust growth. The rising demand requires expansion of the electricity system to ensure continued reliable service to customers. This, together with high inflation and rising interest costs, are the primary reasons for the electricity rates review.

Q: How would the proposed 6% in electric rates affect my bill?

A: The revised electric rates propose a 6% increase across all service territories. Electric rates are outlined in the electricity regulations and vary across customer classes and your island of residence. For example, residential customer rates are different from commercial customers and medium or large hotels. With the proposed increase, residential customers who use up to 900 kWh per month would see a difference of between $2 to $15 per month on their electricity bill.

Q: Does FortisTCI receive a guaranteed rate of return of 17.5%?

A: While a 17.5% return on rate base is allowable by contract, the average return on rate base for the past five years was 3.9%, with the highest being 5.1% during this period. Still, we have only sought one general rate increase in the past 20 years. The Company has also invested heavily to modernize and maintain the electricity system, and provide reliable service to customers.

Q: What is FortisTCI doing to help reduce the cost?

A: We are reducing our dependence on traditional fuel by diversifying the energy mix through rooftop solar energy systems and utility-scale microgrids with battery energy storage to achieve a well-balanced energy mix. This will ensure our energy supply can sustain the country’s growing energy demand. Several other factors influence the cost of electricity. Due to our geographical location, we operate four independent electricity systems across multiple islands as opposed to a single electricity system.

Q: Has the Governor approved an Independent Inquirer to review FortisTCI’s request for Revised Electric Rates?

A: Her Excellency the Governor has approved the appointment of an independent inquirer to examine the reasonableness of our submission for revised electric rates.

We requested the appointment of the inquirer, following the Governor’s denial of our proposal for revised electric rates, which was submitted on February 14, 2024.

The appointment of an inquirer forms part of the rate review process outlined in the Electricity Ordinance. Interested persons can make representation during the inquiry. Once completed, the inquirer provides a report to FortisTCI as the public supplier and to Her Excellency the Governor with its recommendations.

Understanding Fuel Supply Chain Impacts on Electricity Costs

Learn about the intricate fuel supply chain that powers electricity generation on our Islands and understand the key factors at each step that impact your energy costs. For an overview of how these factors affect your electricity bills, please view our fact sheet.

Fuel Supply Chain FAQs: What You Need to Know

Q: Why is it important to understand the fuel supply chain in TCI?

A: Understanding the fuel supply chain helps you see how various factors contribute to the final cost of electricity. It provides transparency on the fuel factor on your electricity bill, and explains why it changes from month to month based on the global fuel market.

Q: Where does FortisTCI get its fuel from?

A: FortisTCI purchases fuel to generate electricity from a local supplier selected through a periodic competitive bidding process.

Q: How does the fuel get to the Turks and Caicos Islands?

A: The fuel journey begins in Texas, USA, where it is refined and then shipped to the Bahamas. From there, it is transported to the Turks and Caicos Islands.

Q: Why can't fuel be shipped directly from Texas to the Turks and Caicos Islands?

A: Due to the absence of a deep-water harbor in Providenciales that can accommodate large ships, the fuel must first go to the Bahamas before being transported to TCI on smaller barges that can navigate shallow-water ports.

Q: What costs are involved in the fuel supply chain?

A: The cost of fuel includes refinery fees, shipping, trucking costs, storage, insurance, wharfage, and government taxes and fees. Each part of the journey incurs additional costs.

Q: How does the fuel supply chain affect my electricity bill?

A: FortisTCI needs to purchase fuel in advance to maintain a stable supply of electricity for customers. There is a two to three-month delay before global fuel prices are reflected in the fuel factor on customer electricity bills. The combined costs of the entire fuel supply chain impact the fuel factor rate on your electricity bill. Understanding these components helps explain the fluctuations in energy costs.

Understanding Your Electricity Bill

At FortisTCI, we believe in keeping our customers informed about how their electricity bills are calculated. Your bill consists of two components: a fixed electric rate and a variable fuel factor rate.

The electric rate has remained stable over the past 20 years, with only one general rate adjustment in 2020. The fuel factor represents the cost of fuel purchased in a month for generating electricity. The fuel factor fluctuates based on global fuel market prices. For a detailed breakdown of your bill, including an explanation of the fuel factor and other key details, please refer to our fact sheet.

FAQs on Your Electricity Bill and Charges

Q: How is my bill calculated?

A: Your bill is calculated based on several factors:

Fuel Factor: The cost of fuel used to generate electricity.
Electric Rate: The rate set by law for electricity consumption.
Energy Usage: Your monthly consumption in kilowatt hours.
Example Calculation:
- Your monthly consumption (kWh) × Electric rate
- Your monthly consumption (kWh) × Fuel Factor rate
- Your monthly bill is the total of both lines above.

Learn more

Q: What is the Fuel Factor?

A: The fuel factor, or power cost adjustment, is a charge that reflects the cost of fuel used to produce your electricity. The fuel cost fluctuates based on the global fuel market, which is beyond FortisTCI’s control.

Q: How do fuel costs impact my bill?

A: Fuel prices change based on global market conditions. There is typically a two to three- month delay before these changes affect your bill.

Q: How can I manage my electricity costs?

A: Your electricity cost depends on how much energy you use. To lower your bill, use electricity efficiently by adopting energy-saving habits such as turning off lights and unplugging devices when not in use, and using energy-efficient lighting and appliances.

For more energy-saving tips, visit FortisTCI Energy Conservation or, check out our social media.

About the Renewable Energy and Resource Planning Bill (RERP Bill)

What it means to you

FortisTCI is committed to keeping you informed about the pending Renewable Energy and Resource Planning Bill (RERP Bill). This important legislation holds the promise of a cleaner, more sustainable energy future for our Islands within a supportive regulatory framework. It can help increase renewable energy resources, lower our electricity costs over time, reduce dependence on fossil fuels, lower carbon emissions, and protect our environment for generations to come. To learn more about the RERP Bill, please see our RERP Bill fact sheet.

Your FAQs Answered: Understanding the RERP Bill

Q: What is the RERP Bill?

A: The RERP Bill was tabled by the Turks and Caicos Islands Government in the House of Assembly in 2023 to support the development of renewable energy, grid integration, and energy storage solutions, enabling a transition to a cleaner, more sustainable energy future. The draft bill is available on TCI Government’s website.

Q: Why is the RERP Bill important to FortisTCI customers?

A: The RERP Bill impacts future electricity costs, economic growth, and the environmental landscape of the Turks and Caicos Islands. It is important for customers to stay informed and participate in the public consultation process as this legislation progresses.

Q: How is FortisTCI involved in renewable energy development?

A: FortisTCI has been the largest investor and customer partner in renewable energy systems since 2015 and will continue to collaborate with the Government and its consultant to advance renewable energy in a way that ensures reliability, resiliency, safety, sustainability, and affordability.

Q: What are FortisTCI’s key positions regarding renewable energy?

A: FortisTCI believes in continuing to invest in renewable energy that provides least-cost electricity service, ensuring grid integrity while accommodating independent renewable energy systems within a supportive regulatory framework. We want to make sure renewable energy benefits all customers fairly. Customers who do not install renewable energy systems should not pay for the associated costs of those who do.

Q: How will the RERP Bill affect the future of energy in the Turks and Caicos Islands?

A: The RERP Bill will help guide the transition to a more diversified and sustainable energy future, involving investments in dual-fuel natural gas generation, solar plus battery energy storage microgrids, electrifying transportation, and enhancing the resilience of the electric grid.

Q: What are the expected benefits of FortisTCI’s renewable energy initiatives?

A: The initiatives are expected to help lower electricity costs over time, maintain high reliability and system resilience, ensure safety, reduce fuel use and carbon emissions, and meet the growing energy demands of the TCI economy.

Proposed Multisector Public Utility Regulatory Agency

Why it matters to you

FortisTCI wants to keep you informed about the Turks and Caicos Islands Multisector Public Utility Regulatory Agency (MS-PURA) Draft Policy introduced by the Government in March 2024. The proposed centralized agency will govern the future of essential public utilities including energy, telecommunications, water, sewerage and related services. It aims to create an independent regulatory commission, streamline processes, and establish a Disaster Recovery Trust Fund to strengthen utility infrastructure. For more information on how this may affect you, please check out our fact sheet.

FAQs: How the MS-PURA Affects You

Q: What is the purpose of the Multisector Public Utility Regulatory Agency?

A: The agency is designed to govern essential public utilities, simplify regulatory processes, and ensure transparency, public interest, affordability, and resilience of utility services.

Q: How will this policy impact me?

A: The policy aims to centralize regulatory governance of essential public utilities including energy, telecommunications, water, sewerage, and related services. Currently, public utilities are governed by an Energy and Utilities Commissioner appointed by the TCI Government. It also aims to establish a Disaster Recovery Trust Fund to restore essential public services in case of hurricanes and other potential service disruptions or weather events.

Q: What is FortisTCI’s position on this policy?

A: FortisTCI supports regulatory reform and believes that a well-balanced framework can benefit customers. We have engaged in consultations with the Government and submitted our recommendations to ensure customer, utility, and investor interests are balanced.

Q: What are the next steps for this policy?

A: The draft policy will guide further consultations, leading to new legislation aimed at regulatory accountability, good governance, and transparency. Stakeholder participation will be encouraged throughout the process.

Staying Informed Together

These are the current regulatory energy matters that we want you to be aware of over the coming months. We are committed to keeping you informed as new developments arise. Your trust and partnership are invaluable to us. Connecting and keeping you informed are essential to our service to you. We will continue to provide updates on any energy matters that impact you and our nation.

Energy Matters to All of Us

Please contact us with any questions related to current regulatory matters. We are here to keep you informed.