The Electricity Regulatory Authority of the Cayman Islands approves new Consumer Owned Renewable Energy Tariff



    
    Caribbean Utilities Company, Ltd. is listed for trading in United States
    dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".
    

    GRAND CAYMAN, Cayman Islands, Jan. 14 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC") and the Cayman Islands Electricity Regulatory Authority
("ERA") announced today that a program has been approved which will allow
customers in Grand Cayman to connect renewable energy systems to CUC's
distribution system and to reduce their monthly energy bills by generating
their own power from renewable energy while remaining connected to CUC's grid.
The program will also provide for customers to be credited for self generated,
renewable energy, whether consumed by the customer or used by CUC for other
customers, through the existing transmission and distribution system. This new
opportunity comes as the result of approval being given by the ERA to the
terms and rates associated with this renewable energy option to consumers in
Grand Cayman.
    Consumer Owned Renewable Energy ("CORE") is energy generated from a
technology such as small scale solar systems or wind turbines. Such renewable
energy options will have a positive impact on the island's environment and
also help to reduce its dependence on fuel oil, diversify its power supply,
lower sensitivity to fuel price fluctuations and to help limit further
increases in air pollutants including greenhouse gases. Customers wishing to
obtain further details or wishing to participate in the program may sign up
immediately by contacting CUC's Customer Service Department at 949-4300. CUC
expects by mid to late March to be able to connect customers generating power
from renewables, and customers can begin to reduce their monthly bills through
sales to CUC at that time.
    Chairman of the ERA, Mr. Kendal Ryan noted that, "the ERA is pleased to
approve the CORE programme, in furtherance of the recently passed ERA Law
(2008 Revision), and CUC's new licences issued in April 2008, in which there
is a requirement to encourage clean renewable sources of power. We encourage
consumers in a position to install renewables to assess their options for
doing so."
    President and Chief Executive Officer of CUC, Mr. Richard Hew, stated
that, "We are pleased to facilitate this important step in establishing
renewable energy in Grand Cayman. Customer-generated renewable energy will
have a positive impact on the environment. This plan offers consumers who
generate energy through renewable means that may not be continuous, the
opportunity to interconnect with and benefit from the reliability of CUC's
electricity distribution system."
    CORE participants will receive a credit (the "CORE Credit") for energy
generated through renewable means. The CORE Credit equates to costs which CUC
avoids by purchasing CORE generation, such as fuel and lubricants plus an
allowance towards other avoided variable costs. The CORE customer will be
billed monthly at the normal retail rate for their total energy consumption
and credited at the CORE rate for the output of their generation. This billing
arrangement will ensure that infrastructure costs required to operate the
transmission and distribution system for CORE participants will not be
subsidized by non-CORE consumers.
    If the net energy for the month is negative (CORE generation exceeds
consumption), then the surplus energy will be banked for that consumer to use
against net positive consumption in the future.
    A CORE Credit agreement between the consumer and CUC will set out the
terms under which services, connectivity, metering and billing credits will be
governed. There will be a limit of 10 kW of capacity or the peak load of
customer's premises if less than 10 kW, for each residential CORE installation
to avoid over-sizing of the CORE installation, and the CORE program will be in
place for a trial period ending December 2010 after which time a review of its
operations will be undertaken.
    The CORE program provides an excellent opportunity for both CUC and its
customers to participate in protecting the environment. By utilizing renewable
energy instead of fossil fuels to generate electricity, CUC and its customers
will be able to reduce exhaust gas emissions, reduce the use of natural
resources and contribute to the overall protection of the environment both in
Grand Cayman and globally.

    CUC provides electricity to Grand Cayman, Cayman Islands, under a
non-exclusive Electricity Generation Licence expiring in 2029 and an exclusive
Electricity Transmission and Distribution Licence expiring in 2028. Further
information is available at www.cuc-cayman.com, or the Electricity Regulatory
Authority site www.caymanera.com.

    Caribbean Utilities Company, Ltd. ("CUC" or "the Company"), on occasion,
includes forward-looking statements in its media releases, Canadian securities
regulatory authorities filings, shareholder reports and other communications.
Forward-looking statements include statements that are predictive in nature,
depend upon future events or conditions, or include words such as "expects",
"anticipates", "plan", "believes", "estimates", "intends", "targets",
"projects", "forecasts", "schedule", or negative versions thereof and other
similar expressions, or future or conditional verbs such as "may", "will",
"should", "would" and "could". Forward-looking statements are based on
underlying assumptions and management's beliefs, estimates and opinions, and
are subject to certain risks and uncertainties surrounding future expectations
generally that may cause actual results to vary from plans, targets and
estimates. Such risks and uncertainties include but are not limited to general
economic, market and business conditions, regulatory developments and weather
conditions. CUC cautions readers that actual results may vary significantly
from those expected should certain risks or uncertainties materialize or
should underlying assumptions prove incorrect. Forward-looking statements are
provided for the purpose of providing information about management's current
expectations and plans relating to the future. Readers are cautioned that such
information may not be appropriate for other purposes. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise
except as required by law.

    %SEDAR: 00002251E




For further information:

For further information: Caribbean Utilities Company, Ltd., Doug Murray,
Corporate Secretary, Phone: (345) 949-5200, Fax: (345) 949-4621, E-Mail:
investor@cuc.ky; Cayman Islands Government, Philip Thomas, Managing Director,
Phone: (345) 949-8372, Fax: (345) 947-9598, E-Mail: pthomas_era@candw.ky


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