GRAND CAYMAN, Cayman Islands, Feb. 7 /CNW/ - On Saturday, February 5,
Caribbean Utilities Company, Ltd. ("CUC" or the "Company") experienced
a major mechanical failure of a Mirrlees 7.59 megawatt ("MW")
generator. There were no personnel injuries and damage was contained
to the single diesel engine. This engine was installed in 1991, and
was scheduled for retirement in 2012.
The failure follows an incident on the plant site on Friday, January 28,
2011, in which equipment associated with an MAK 9 MW generator was
damaged due to an explosion during a start process. That incident
resulted in injuries to two employees, one of whom remains in critical
condition. Damage to the unit was contained to peripheral equipment.
The investigation is ongoing.
While the Company believes that losses excluding deductibles from both
incidents, including the cost of temporary generation and business
interruption are covered by the Company's comprehensive insurance
policies, delays in realizing insurance payouts could result in
significant receivables to the Company. The Company also continues to
pursue an insurance claim in respect of the failure of a 16 MW
generation unit in September of 2010 which will remain out of service
until April 2011 due to the extensive scope of repairs.
The generation units in question had all equipment had been serviced
within established maintenance intervals. Investigations are ongoing
and involve manufacturers' representatives and independent
investigators appointed by the insurers.
In addition to the damaged equipment noted above, the Company is working
to expedite maintenance work in order to restore 14 MW of generation
capacity currently down for routine service. The Company is also in
the process of securing temporary generation to be brought on island to
restore the required generating capacity reserves. Until this temporary
capacity is in place and the out-of-service capacity is restored,
further unplanned maintenance outages may lead to rotating customer
outages of up to an hour each in duration due to short term capacity
CUC provides electricity to Grand Cayman, Cayman Islands, under an
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.
Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".
Caribbean Utilities Company, Ltd., 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 by their very nature and are subject to certain
risks and uncertainties 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. 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.
SOURCE Caribbean Utilities Company, Ltd.
For further information:
Douglas H. Murray, Corporate Secretary
Phone: (345) 949 5200, Fax: (345) 949 4621