04242025 BUSINESS

THURSDAY, APRIL 24, 2025

Bahamian investors in $20m power plant ownership offering

By NEIL HARTNELL Tribune Business Editor

BAHAMIAN retail investors will be given an opportunity as early as end-May to collectively acquire a $20m ownership interest in the renewable energy provider developing new power plants for Abaco and Eleuthera.

Anthony Ferguson, president of CFAL, the financial advisor and placement agent for EA Energy, told Tribune Business that approval from the Securities Commission is now awaited for an offering that will give small and individual Bahamian investors the opportunity to acquire a stake in the Government’s energy reforms for as little as $1,000.

Speaking after EA Energy completed the private placement aspect of its $132.5m capital raising, he revealed that - while the $100m bond component was fully subscribed for by investors - around $21m of the $32.5m equity was taken up. This now leaves the remainder and more available for retail investors, with Mr Ferguson confirming that Abaco and Eleuthera residents will be given the chance to buy-in.

“We always intended to have about $20m for the public, so we’re going to be doing that at the end of May,” the CFAL chief told this newspaper. “We’re going to do similar to what we did with Arawak Port Development Company (APD) and the Nassau Cruise Port. Everything is in with the Commission, and we’re just waiting for them to give us approval.”

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Government last night asserted that its warnings of short-term “price pressures” and “inflated costs” do “not mean electricity prices are rising across the board” over the next three years.

Latrae Rahming, the Prime Minister’s communications director, told Tribune Business that the Davis administration was simply explaining The Bahamas is “still exposed to short-term fluctuations” in fuel prices beyond its control after it appeared to warn households and businesses they may have to endure short-term pain - in the form of higher energy bills - to secure long-term gain through greater cost savings.

The alert was issued on page 28 of the ‘Securing The Bahamas’ energy future’ document that was tabled by the Prime Minister in the House

of Assembly yesterday. In a section titled ‘Short-term trends: Transition costs and near-term pressures’, the Government said the cost associated with up to $1.2bn of planned energy infrastructure investments will impose duress on energy bill prices until the projected savings kick-in.

“During the 2024 to 2027 transition period, consumers will experience short-term price pressures as capital investments are deployed and old systems phased out,” the report tabled by the Prime Minister stated. “Through these PPPs (public-private partnerships) and power purchase agreements, $1.182bn has been committed to generation, transmission, storage and smart metering infrastructure across the archipelago.

“While these investments will unlock long-term savings, they will temporarily

BPL’s ‘crushing debt dig out’ with $87m savings

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Prime Minister yesterday asserted the Government’s energy reforms will generate $87m in annual savings for Bahamas Power & Light (BPL) so it can “dig out from the crushing weight” of $500m in debt.

Philip Davis KC, addressing the House of Assembly on the much-touted industry overhaul, said outsourcing generation and New Providence’s electricity grid to private sector partners will

help restore a state-owned utility that was “drowning” in half-a-billion dollars of debt plus $100m in unfunded employee pension liabilities to “fiscal health”.

Although no timeline was given for when these savings will be fully realised, the Prime Minister said almost half this sum - some $43m - would be recovered from

‘Sign

ending the temporary rental generation contracts providing around 113 mega watts (MW) of power on New Providence alone. He pledged that these savings “will accumulate until BPL’s entire $500m debt is erased”.

However, Michael Pintard, the Opposition’s leader, told Tribune Business that the Prime Minister’s address to Parliament was more notable for what it did not mention as opposed to what was said. He added that, while yesterday’s proceedings were the Government’s response

of desperation’ to celebrate IMF revision

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Opposition’s finance spokesman yesterday asserted that “it’s almost a sign of desperation” for the Prime Minister to celebrate a 0.1 percentage point improvement in the IMF’s growth forecast for The Bahamas.

Kwasi Thompson, the east Grand Bahama MP, hit out after Philip Davis KC hailed the International Monetary Fund’s (IMF) upward revision from 1.7 percent to 1.8 percent economic growth for 2025

- as well as The Bahamas’ first credit rating outlook upgrade to ‘positive’ in 17 years - as evidence of the outside world’s “confidence” and “faith” in the country’s ability to improve its prospects. Noting that The Bahamas has bucked a trend that saw the IMF downgrade 2025 growth forecasts for the US, UK and all other major economies as a result of the Trump-induced tariff turmoil, the Prime Minister said: “It is with a sense of resolve and encouragement that I share with this House

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

the benefits from its energy reforms are realised, it was asserted yesterday.

Prime Minister Philip Davis KC tabled the ‘Securing The Bahamas’ energy future’ report, detailing the anticipated economic and social benefits from the industry’s overhaul, in Parliament as his administration sought to make the case for “farreaching” changes to a sector that has been “in crisis”.

“These reforms are already delivering results. By 2025, the switch to liquefied natural gas (LNG) is projected to generate $90m in savings. When all projects are in place, the total annual savings across the system are expected to exceed $130m. Financial projections indicate that Bahamas Power & Light could reach cash flow

ANTHONY FERGUSON

PHILIP DAVIS KC

MICHAEL PINTARD

BAHAMAS POWER & LIGHT (BPL) HEADQUARTERS

SMART ‘WEARABLES’ COULD UNLOCK BAHAMAS BOOST

It is hard to ignore the buzz around smart wearables these days. From smart watches that track our heart rates to augmented reality glasses that guide technicians through complex repairs, wearable technology is no longer just a fitness fad for it is quickly becoming a game changer in the modern workplace.

Beyond the novelty and convenience, smart wearables are quietly reshaping how we work, and in locations such as The Bahamas, they could be key to unlocking a more efficient, connected and even healthier economy.

Let us start with what we mean by “smart wearables”. These are technology devices designed to be worn on the body - think watches, rings, glasses or even clothing - that connect to the Internet or other devices to collect and share data in real time. In a work setting, they can monitor everything from stress levels and

ROYE II KEITH

posture to location and task progress. In industries such as healthcare, logistics, hospitality and construction - major sectors in the Bahamian economy - wearables can streamline operations and improve safety. For example, a smart badge worn by a hotel staff member might alert supervisors when a guest room has been serviced, or when

a staff member enters a high risk area. In construction, smart helmets and vests can monitor environmental conditions and alert workers of potential hazards, reducing on-the-job accidents.

The real magic happens when wearables are integrated into a broader digital workflow. They provide real time data that managers can use to make better decisions, shift resources and prevent bottlenecks before they happen. Employees, on the other hand, get timely reminders, feedback and tools to stay focused and efficient. It is not about micromanagement; it is about intelligent support.

Studies globally are already showing that smart wearables can increase productivity by up to 8.5 percent in certain roles. Now, imagine that gain scaled across the Bahamian workforce. In a nation where tourism and services account for a significant slice of gross domestic

product (GDP), that kind of efficiency uplift could translate into millions in added value.

Here is where things get interesting. As The Bahamas looks to diversify and modernise its economy, technology adoption becomes not just beneficial but essential. Smart wearables represent a relatively low cost, high impact innovation that could improve both public and private sector efficiency.

In tourism, for example, faster, more responsive service means happier guests and potentially more repeat business. In government services, wearable technology could help field workers improve their response times, reduce paperwork and minimise human error. Even in education, wearables are being piloted in other countries to help monitor student

engagement and support teachers in real time.

Plus, there is the health angle. With many Bahamians managing chronic illnesses such as diabetes and hypertension, smart health wearables could support employee wellbeing, reduce absenteeism and ease pressure on the national healthcare system.

Of course, there are caveats. Data privacy is a big one as employees need to know their information is being used responsibly. Then there is the cost of devices, especially for smaller businesses, and the need for digital infrastructure and technology training to ensure the tools are used effectively.

But, with thoughtful policy, strategic public-private partnerships (PPPs) and a focus on upskilling, The Bahamas could leapfrog into a more

technology-enabled, productive future. Smart wearables might be small, but their impact is anything but. As Bahamian businesses seek ways to stay competitive in a global economy, investing in wearable technology could provide just the edge they need. It is not just about gadgets. It is about smarter work, healthier employees and an economy that is ready for the future one wearable at a time.

GOV’T UNVEILS ITS REVISED NATIONAL ENERGY POLICY

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

A CABINET minister yes-

terday said the transition from diesel and heavy fuel oil to cheaper, cleaner liquefied natural gas (LNG) is at the core of the Government’s energy reform strategy.

JoBeth Coleby-Davis, minister of energy and transport, told the House of Assembly that LNG will be rolled out on islands with the highest energy consumption - New Providence, Eleuthera and Exuma - allowing them to generate energy more efficiently with predictable costs.

“In The Bahamas, we are ushering in a new energy era - one rooted in long-term planning, smarter investments and bold choices that prioritise both economic stability and environmental responsibility. At the core of this transformation is our transition from heavy fuel oil and diesel to liquefied natural gas (LNG), beginning with our highest consumption islands: New Providence, Abaco, Eleuthera and Exuma,” said Mrs Coleby-Davis.

“This shift is not just about cleaner energy; it’s about energy we can count on. LNG gives us a stable, cleaner-burning fuel source that helps us manage and predict costs with far more control than we’ve had in the past. We are also converting two of the largest BPL-owned generation engines to LNG, making use of the assets we already have while positioning them to serve us more efficiently in the future”

Mrs Coleby-Davis said that each agreement the Davis administration has entered during the energy reform has be aimed at reducing the cost of electricity for the entire Bahamas, and all residents will benefit from a lower national average energy rate.

“Alongside this, we are developing utility-scale solar projects, starting with New Providence and extending to the Family Islands. While our solar potential is limited to about 1,500 full production hours per year, these projects still play an important

role in fuel diversification and reducing long-term cost exposure,” said Mrs Coleby-Davis.

“Each power purchase agreement (PPA) we sign, whether for solar, LNG or hybrid systems, is island-specific, but every PPA contributes to a national goal: To drive down the average cost of electricity for all customers. This means that even if one island sees the immediate benefit of a new LNG plant or solar array, every Bahamian benefits as that more affordable generation contributes to the national average rate.”

Mrs Coleby-Davis said Bahamian households are already seeing the benefits of the equity rate adjustment (ERA) tariff structure with more than 64,000 households receiving electricity bills under $126 for March.

The ministry has also rolled out the new National Energy Policy, which includes new developments with LNG as well as revised short, medium and long-term energy priorities. It is now out for consultation.

“Our energy policy should preserve an appropriate balance between energy demand and supply. It should pronounce itself on short, medium and long-term priorities. It should also balance the use of energy resources with environmental considerations,” said Mrs Coleby-Davis.

“The previous energy policy was written in 2013 more than ten years ago. A lot has changed since that time, and that why this update is so important. There have been new developments. For example, we know more today about LNG than we did back then, and new technologies in the renewable energy space have emerged.

“In addition to the advancements, there was limited stakeholder engagement in the original drafting process and insufficient policy alignment of our climate resilience goals and grid modernisation needs. The amendment addresses these gaps while aligning with our international commitments and national development goals.”

Trade Commission chair calls for stronger African linkages

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE Bahamas Trade Commission’s chairman is calling for more trade between Africa and the Caribbean to help counter increased global uncertainty sparked by Donald Trump’s tariff policies.

Speaking at the Africa-Caribbean Trade and Investment Conference in Accra, Ghana, Senator Barry Griffin said Africa can be a “stable and affordable” source of products, building supplies and raw materials for The Bahamas and wider region, allowing it to diversify its trading partners and opening a new market for African goods.

“Two years ago, we launched our National Trade Diversification Strategy to identify new trade partners and unlock new avenues for sustainable economic development. We recognised that relying on a narrow base of imports and exports makes us vulnerable to global uncertainty. In this era of shifting trade blocs and geopolitical instability, the need to diversify has become not just strategic but urgent. That is why we are turning to Africa,” said Mr Griffin.

“African nations can be a stable and affordable source of fresh produce, building supplies, raw materials and value-added products for the Caribbean. In return, the Caribbean can be a vibrant,

loyal and lucrative market for African goods. We are not asking for aid. We are offering partnership based on reciprocity, mutual respect and opportunity.”

Mr Griffin said the Caribbean is not a small island market, but a global platform as it is home to more than 15m residents and accommodates millions more as tourists from across the world annually.

“Many underestimate the Caribbean. But let me paint a different picture. We are a market of over 15 million people, and that is just our residents. Each year we welcome tens of millions of tourists from all over the globe. The Bahamas alone is expected to see

over 12 million tourists this year,” said Mr Griffin.

“These visitors bring with them purchasing power, demand and access to international consumer markets. We are an entry point to the Americas - strategically positioned, culturally diverse and globally connected. This is not a small island market. This is a global platform waiting to be activated by partners like you.”

Mr Griffin added that Grand Bahama has one of the largest deep-sea ports in the Caribbean, and is also set to house the $50m Afro-Caribbean Marketplace, providing more opportunities for African-Caribbean trade.

“Grand Bahama is home to one of the largest deep-sea ports in the Western Hemisphere. It is a sleeping giant ideally located for the transshipment of African goods to the Caribbean, North America and Latin America,” said Mr Griffin.

“This is our time. We are not bound by the limitations of the past, but lifted by the legacy of our ancestors. We are not mere remnants of colonial history; we are architects of global economic progress. So let us leave this conference not with another list of ideas, but with a unified commitment to act. Let us sign deals. Let us open markets. Let us trade goods, services and technologies. But, above all, let us trade in dignity, in trust and in unity.”

SENATOR BARRY GRIFFIN

Bahamian investors in $20m power plant ownership offering

Mr Ferguson confirmed the retail investor offering will likely be structured along similar lines to the Nassau Cruise Port, where persons bought shares in an investment fund that, in turn, holds their collective stake in the Prince George Wharf operator.

“It’s cheaper from an operational cost standpoint and folks get the full dividend yield as opposed to having any costs associated with it,” he explained. “It’s going to go out at $20m to retail investors.”

CFAL yesterday said persons will be able to participate in the EA Energy offering with a minimum $1,000 investment, and it is also giving “the option for salary deductions for employees of the Government of The Bahamas and other public corporations as done in previous offerings”.

Mr Ferguson yesterday suggested that debt financing may be provided to enable persons to buy-in with this sum to be paid back in ten months.

“I’m not aware of any other energy PPP (privatepublic partnership) out there offering shares to the public,” he added. “We thought it important that the Bahamian public participate similar to APD and the cruise port; Nassau Cruise Port.”

CFAL yesterday said the first-round private placement financing, which lasted for 16 days before closing pre-Easter on April 16, had raised “a significant portion off the $140m EA Energy aims to use for its dual projects”.

Mr Ferguson confirmed to this newspaper that the $100m bond component was fully subscribed, adding that “there’s a lot of appetite for fixed income” securities especially with the 8 percent interest coupon on offer, while EA Energy also received “$21m thereabouts” of the $32.5m in equity capital on offer.

“We have the balance for the public,” he added. “Obviously we want to involve people in Eleuthera and Abaco to make sure they have an opportunity to invest. It’s their projects and they’re the ones who are going to be utilising the assets.”

The Eleuthera and Abaco power plants will be constructed on land adjacent to BPL’s existing Hatchet Bay and Wilson City locations. Mr Ferguson voiced hope that major vertical construction work could begin as quickly as six to eight weeks time, once all necessary permits are obtained, with the solar and liquefied natural gas (LNG) facilities finished by early 2026 and June next year respectively. “We’ve already invested money in it in terms of

putting down deposits on the generators and stuff,” he added, “and all the civil works. We’ve been investing money for a bit. We’ve put deposits on generators. Getting those things, they can take 24 to 36 months, and we were able through our international contacts to get it within that timeframe. They are like $7m-plus.

“We’re waiting for one or two permits. Once we get those, we’ve hired the team and are ready to go flat-out round the clock. Engineering is already approved. We just need some final environmental approvals, and are working with Keith Bishop and his team.

“I would say within six to eight weeks we’ll be trenched for solar and stuff like that. We’d like to be aggressive and to have solar finished by December or January 2026 and then the LNG by June next year.”

The two power plant projects will be de-risked via the signing of a 25-year power purchase agreement with Bahamas Power & Light (BPL).

The latter will be required to purchase a minimal amount from EA Energy and compensate it at “the contract price” if it misses this threshold. And EA Energy, in its offering documents, said it has also been given effective exclusivity to supply power on both islands if it performs,

meaning a public monopoly in BPL has been swapped for a private one.

“The ‘limit on third-party purchases of energy’ provision ensures that BPL will exclusively source energy from the project as long as the facility meets 100 percent of the demand requirements for its customers in Eleuthera and Abaco, and remains capable of delivering at least the agreed minimum purchase obligation,” EA Energy said.

EA Energy is estimating that its Eleuthera and Abaco power plants will supply energy at 25.47 cents and 25.79 cents per kilowatt hour (KWh), respectively, when they begin generating electricity in the 2026 third quarter. Site clearance work was already shown to have begun.

Given that BPL was charging a combined all-in 35 cents per kilowatt hour over 800 KWh in February 2025’s billing, the tariffs proposed by EA Energy would appear to represent between a 26.3 percent and 27.2 percent or just under 10 cent per KWh decrease compared to existing billings.

However, energy industry sources have queried these prices. One contact, speaking on condition of anonymity, said the prices shown by EA Energy appear to be wholesale

‘SIGN OF DESPERATION’ TO CELEBRATE IMF REVISION

the recent revisions issued by the International Monetary Fund in its April 2025 World Economic Outlook.

“Despite a global context defined by economic uncertainty, trade disruptions and inflationary pressures, the IMF has upgraded The Bahamas’ growth projections for 2025 from 1.7 percent to 1.8 percent, and for 2026 from 1.6 percent to 1.7 percent.

“In a world where many nations have seen their forecasts downgraded, The Bahamas stands apart. We are among the few countries that have earned an upward revision. This is a marker not only of international recognition — but of the clear-eyed, hard-nosed, deliberate economic management we’ve insisted upon,” Mr Davis added.

“Some doubted this would be possible. Some said the hole was too deep, the institutions too weak, the political courage too rare. They scoffed at the ambition of our fiscal reforms, questioned the viability of our energy agenda and ridiculed our insistence on national development

that is both inclusive and modern.

“But, Madam Speaker, here we are. The data is clear. The message from global institutions is loud. And the faith being shown in The Bahamas is real.”

Mr Davis used the IMF upgrade, and recentlyimproved credit outlook from Moody’s, to hit back at the Opposition and other critics while asserting that his administration has revived and rescued the economy from the state it inherited from its Minnis predecessor.

However, an unconvinced Mr Thompson argued that the 0.1 percentage point improvement is relatively “minuscule” in economic terms given that it represents just a $14m$15m increase in economic output or GDP in a near$15bn economy. He also pointed out that the 1.8 percent growth forecast for 2025 represents a 0.8 percentage point decrease on the 2.6 percent that The Bahamas achieved as recently as 2023.

“I don’t think they have a lot to celebrate,” Mr Thompson argued. “The IMF report, if you put that

in context, I don’t believe anybody would see that as a time to celebrate. Our growth had dropped from 2.3 percent to the original 1.7 percent forecast for this year, and this increase was from 1.7 percent to 1.8 percent.

“I don’t believe anybody would celebrate economic growth of 1.8 percent when we need far more to deal with unemployment, we need far more to deal with students coming into the workforce, we need far more to address the cost of living crisis. Now is not the time for us to celebrate. It’s time to focus on policies that create sustainable economic growth.”

Mr Thompson said such action would have far more meaning for Bahamians and their families than a modest upward revision to the IMF’s growth projections, and challenged why the Prime Minister was hailing a forecast as opposed to actual economic growth. He also asserted that inflation and the cost of living represent an ever-present concern, while stopover visitors that are “the engine of tourism” remain flat.

prices meaning the cost it will sell energy to BPL for. Besides being higher than BPL’s 23.5 cents per KWh all-in electricity tariff when the Minnis administration’s fuel hedge was in effect, the source said BPL would likely need to add a markup equal to 12-12.5 cents per KWh to cover its own costs plus grid maintenance. As a result, they suggested the price charged to Abaco and Eleuthera consumers will not see a major decrease based on these figures. EA Energy’s equity private placement document showed that, together, the two power plants will create some 38 full-time jobs - 16 in Eleuthera, and 22 in Abaco - with a combined annual payroll of $2.762m. Their combined revenue is forecast to grow from $50.1m during their first full year in operation in 2027 to $131.9m in 2050 - the last year before the 25-year PPA ends.

The renewable energy provider is a joint venture between Consus, a Turkish energy company, and Verdant, a Bahamian entity for whom few details were disclosed. Following the private placement equity raise, both partners will retain a 37.5 percent ownership interest with the remaining 25 percent held by Bahamian investors. Each will thus be selling off

“I don’t believe the Bahamian public is focused on 1.7 percent versus 1.8 percent growth and what that means,” he added. “The Bahamian public is focused more on policies that decrease the cost of living for them. They are interested in policies that reduce unemployment and produce real, positive growth, and which produce sustainable economic growth and put dollars in their pockets. That’s what the Bahamian public is interested in.”

The Government’s energy reforms could be just the sort of policies Mr Thompson is referring to. However, he added: “This business of patting yourself on the back for 0.1 percentage points. This is not evidence that the economy is doing better. This is not about real growth. This is a forecast.

“If you have to celebrate a forecast, but have not achieved actual growth in the economy, that is almost a sign of desperation if you have to celebrate a forecast. One of the issues we have raised is about the decrease in economic growth, not just the forecast. We need to put what the IMF said in

context and not celebrate it. It is a wake-up call for us to put in place policies that will provide real and true economic growth.”

Mr Davis, though, argued: “We returned our country to primary surplus. We laid out and followed through on a fiscal plan that curbed waste, stabilised our borrowing, and re-established discipline in public expenditure. The world took notice.

“Moody’s, an agency not known for flattery, recently upgraded The Bahamas’ outlook from stable to positive for the first time in nearly 20 years. Their statement recognised that our debt is now falling. That our deficit is under control. That our reforms are yielding results....

12.5 percent of its existing 50 percent equity stake.

The participants in EA Energy, and the renewable provider itself, were both described as having existing strong Bahamian links. EA Energy was said to have the Nassau Cruise Port as a “sister company”, although the link was not fully explained, while Verdant is a “shareholder in Island Power Producers (IPP)..... the 60 mega watt (MW) LNG-fuelled shore power project development in New Providence”. That will supply clean energy to ships docked at Nassau Cruise Port. Erold Farquharson, a contractor, who is Island Power Producers’ managing director, is also named as EA Energy’s chief executive, and EA Energy’s Board includes as directors Mr Ferguson and Antoine Bastian, the Genesis Fund Services’ principal. Island Power Producers’ address, No.3 Bayside Executive Park in western New Providence, is the home of Levant Advisors, whose principals are listed on the company’s website as Mr Ferguson and Mr Bastian. The duo are heavily involved with the Government’s efforts to monetise The Bahamas’ seagrass meadows, mangroves and other so-called ‘carbon sinks’ via the creation of ‘blue carbon credits’.

“Growing confidence is not limited to the corridors of the IMF or the credit rating halls of Moody’s. It is echoed in the investment decisions being made by businesses, both domestic and international. It is reflected in the fact that our capital markets are expanding, that tourism remains strong, and that construction across the archipelago is surging.”

And, in a nod to the threat posed by Trump tariff confusion, Mr Davis said: “The IMF’s recent report makes one thing clear: Global uncertainty is likely to persist. From US tariffs to fragile financial markets, the road ahead is not without risk. But for the first time in a generation, The Bahamas enters such uncertainty from a position of growing strength.

“We are no longer pleading our case; we are proving it. We are no longer waiting for help; we are building systems that empower Bahamians to help themselves. This is the essence of confidence. Not arrogance. But confidence forged in discipline, data and delivery.”

KWASI THOMPSON

BPL’s ‘crushing debt dig out’ with $87m savings

FROM PAGE B1

to his challenge to discuss BPL and the energy sector, it had avoided any real discussion by holding a debate under the guise of ministerial statements.

“I think one of the things with his communication today is that it showed the glaring omissions, the things he did not say,” Mr Pintard argued. “He did not talk about them failing on competitive bidding in a number of key areas in this particular [energy reform] process. And he did not comment on why individual Bahamians were not given an opportunity at price points they can afford to invest in these companies.”

The FNM leader said he was not attacking or criticising the Bahamian-owned companies participating in the energy reforms as independent power producers (IPPs), swiftly clarifying that the Opposition “doesn’t have a problem” with the involvement of any of them.

However, he reiterated concerns over whether the Government has obtained the best energy reform prices, structure and terms possible given that neither New Providence’s baseload generation, awarded to Bahamas Utility Company, a subsidiary of BISX-listed FOCOL Holdings, nor the grid overhaul - handed to Bahamas Grid Company,

Island Grid, Pike Electrical and private investors - was subjected to competitive bidding.

“We have a problem with single sourcing it to a particular group of people rather than competitive bidding,” Mr Pintard said. “And they did not make any provision for ordinary Bahamians to buy shares in various aspects of what’s being provided. The one instance where there was an opportunity to buy in, you had to have assets or funds worth $45,000.”

The Opposition leader also argued that any dividends and other profits earned by BPL from its 40 percent equity ownership of Bahamas Grid Company should be directed to the National Investment Fund, or some form of sovereign wealth fund, and “earmarked not just for infrastructure upgrades, retraining the workforce, addressing the pension liability etc.

“We should earmark a portion of those funds to go into a sovereign wealth fund,” Mr Pintard added. The Prime Minister, in breaking down BPL’s projected $87m per annum savings, said $4m of this would come from dividends paid out by Bahamas Grid Company as returns on its 40 percent stake. Given that Bahamas Grid Company is 60 percent

majority-owned by private investors, who invested a combined $30m in equity, the figures released by Mr Davis imply that they will enjoy an average annual dividend return of $6m.

Since Bahamas Grid Company will have a 25-year contract to fix and maintain New Providence’s energy grid, that $6m annual dividend - if achieved and paid out - translates into a $150m payout over the deal’s lifetime. That represents a five-fold return on these investors’ initial investment, which could increase by a further $60m to $210m - a seven-fold return - if the option for a ten-year extension is executed.

Mr Pintard yesterday urged the Government to release how many investors acquired that $30m in equity, and whether they are Bahamian or foreign.

So far only one has been revealed - BISX-listed Arawak Port Development Company (APD) - which disclosed it has a $1m stake in Bahamas Grid Company after acquiring 50,000 common or equity shares on July 17, 2024.

However, the Prime Minister yesterday told the House of Assembly that the Government has “included Bahamian participation to the greatest extent possible” with its energy reforms. “The reforms will also help

BPL return to fiscal health,”

Mr Davis asserted. “In fact, our integrated strategy will generate $87m in annual savings for BPL.

“Forty-three million dollars will be generated from eliminating costly rental generators; $13m will be generated from structured legacy debt payments; $15m will be due to operational streamlining; $12m will be attributed to increased reliability in New Providence and the Family Islands; and $4m will come in from dividends related to the Bahamas Grid Company.

“These savings will accumulate until BPL’s entire $500m debt is erased. And all of the measures we’ve discussed will help BPL explore avenues to address their pension obligations,” he added.

“It’s part of a virtuous cycle. As we help BPL dig out from under the crushing weight of debt, we are freeing up resources to continually invest in better service, more modern equipment and further cost reductions that benefit every electricity consumer.”

The Government has yet to release any of the economic models or assumptions underpinning the multiple numbers and projected energy cost savings for consumers that the Prime Minister unveiled yesterday. And key details, such as the price at which

BPL targeting ‘cash flow neutral’ by 2032

neutrality by 2032,” the report said. It made no mention of the fuel hedging mishap, or the estimated $110m reclamation of ‘underrecovered’ fuel costs that sent customer bills skyrocketing in summer 2023 through up to 163 percent fuel charge increases, instead focusing on the present and future alongside the draft National Energy Policy 2025-2030, which was also unveiled yesterday for public consultation.

The Policy, which has yet to be finalised, calls for the creation of a Department of Energy. And it sets out targets, such as cutting energy losses from BPL’s grid, known as the transmission and distribution (T&D) system, from the present 15 percent to 10 percent by 2030, while also seeking to “decrease annual system outages due to failures” in the grid by 30 percent come the same year.

Energy efficiency and conservation is also a key focus. “The Government has been making consistent and sustained efforts to meet its international obligations regarding climate change and energy efficiency, evidenced in part by the identification and execution of energy-saving measures within Government-occupied buildings,”

the draft National Energy Policy said.

“In 2023, energy audits were conducted on more than 70 such buildings, assessing their energy use and identifying opportunities for savings. The audit results show the potential for an annual savings exceeding $1m, with some government buildings currently realising such benefits.”

“To date, 25 percent of government buildings’ energy consumption have been audited, and it is a goal of the Government to aggressively audit all government-occupied buildings by 2026. The Government, through the Ministry of Energy and Transport, is also committed to promoting energy efficiency in Bahamian homes to mitigate cost of living and enhance climate change resilience.”

The National Energy Policy said the Bahamas’ Customs headquarters building on Thompson Boulevard had reported energy savings worth $65,000 in 2023 compared to the prior year as a result of implementing energy efficiency measures.

The draft Policy also reveals that the Cabinet on November 19, 2024, approved the creation of a Department of Energy to give “focused attention” to all issues regarding the industry given its

importance to The Bahamas and the country’s economic competitiveness.

“Recognising the very significant role of the energy sector to national growth and development, the Government has established the Department of Energy to bring focused attention to matters concerning the energy sector in The Bahamas,” it confirmed.

“While the Government also recognises and acknowledges URCA’s role, jurisdiction and statutory mandate to regulate the energy sector in The Bahamas, the Department of Energy has been given the clear mandate to lead, oversee and superintend certain key energy sector initiatives.

“The Government expects that the Department of Energy will work closely with the Ministry of Energy and Transport and other energy sector agencies, including URCA, to implement the Government’s National Energy Policy.”

The draft National Energy Policy also conceded that the use of renewable energy by businesses and households has been painfully slow to expand since the first Electricity Act was passed in 2015. “While renewable energy sources like solar power are gradually increasing in The Bahamas, their impact on the fuel

the independent power producers will sell energy to BPL, and the latter’s likely prices to consumers, have also yet to be disclosed making it difficult to judge the reforms.

However, Mr Davis continued: “The LNG conversion alone will deliver enormous benefits. By 2026, 177 Mega Watts (MW) of combined cycle LNG generation will replace 107 MW of expensive rental units and provide 63 MW of additional capacity. Between embracing LNG and improving efficiency, BPL and consumers will save approximately $125.6m annually...

“The grid modernisation will also deliver savings as we build the storm-resistant, efficient and intelligent grid of tomorrow. These grid enhancements will save $10m to $30m annually. That money will flow back to consumers in the form of lower rates and better service.

“These revolutionary transformations represent the largest co-ordinated energy investment in our nation’s history, including $820m for New Providence projects and $324m for Family Island projects. This is a $1bn investment in our economy and in our future – an investment that will not just deliver financial returns, but will also improve quality of life,

country’s dependence on imported fossil fuels.”

landscape remains limited,” it conceded.

“Since the passing of the Electricity Act in 2015, the installation of [solar] photovoltaic (PV) panels has grown steadily. However, they currently account for only about 2.5 percent of the total installed generation capacity. Consequently, conventional fuels continue to dominate the energy mix, although the Government remains committed to promoting cleaner, renewable alternatives to reduce the

It added: “The most recent assessments show that approximately 12,000 kW (kilowatts) of privately installed photovoltaic capacity exists within The Bahamas. Of this capacity, approximately 80 percent is installed in commercial settings, while the remaining 20 percent is residential.

“However, approximately 75 percent of the total number of systems installed are residential. Furthermore, approximately 90 percent of all such systems are situated on the island of New Providence. In addition to privately

expand economic opportunity and enhance our resilience.”

Continuing with this theme, and pledging that some 1,000 construction jobs will be created by the energy reforms’ roll-out, he added: “By 2030, we will have 65 MW of solar in New Providence and 34 MW of new solar generation across our Family Islands, along with the existing 28 MW in Grand Bahama, Ragged Island and Chub Cay.

“That adds up to 128 MW, which means 32 percent of our energy needs will be met by solar power. This exceeds the global target of 30 percent renewable energy by 2030.” Promising that progress is already happening, Mr Davis said the $130m upgrade to New Providence’s energy grid has begun and will be completed in 12 months, while LNG will fuel the island’s base load generation within 18 months.

“And all of the solar, LNG and mixed fuel systems being set up in collaboration with our Bahamian partners throughout our islands are scheduled to be initiated this year, and will be fully operational by the second half of 2026, delivering lower prices within 18 months and locking in those low prices for years to come,” Mr Davis added.

installed systems, there is approximately 14,000 kW of utility-scale photovoltaic renewable energy capacity deployed within The Bahamas.

“Battery Energy Storage Systems (BESS) have also been deployed within The Bahamas, primarily by electricity sector licensees as part of their power generation assets. To date, approximately 47,300 kWh (kilowatt hours) of BESS capacity has been installed by these licensees. This capacity plays a critical role in diversifying the energy mix and reducing the country’s dependence on traditional fossil fuels.”

Gov’t: BPL ‘price pressure doesn’t mean higher bills’

inflate costs.” The report sought to attribute the “short-term pressures” to potential volatility in global prices for liquefied natural gas (LNG), the fuel that the Government’s energy reforms are heavily reliant on as a cheaper and cleaner source of generation.

“For instance, LNG pricing benefits are dependent on maintaining natural gas spot prices below $5 per MMBtu (one million British thermal units). As of the 2025 first quarter, Henry Hub prices average $4.12 per MMBtu, suggesting a manageable but still present risk to early-stage savings,” the Government’s document added. Henry Hub refers to the LNG distribution hub in Louisiana that is used to calculate global prices.

Emphasising that any Bahamas Power & Light (BPL) bill pain will be restricted to the short-term, the report added: “Family Island savings of $18.9m annually are projected to begin in financial year 2027. In the interim, the LNG roll-out is already producing benefits. The first phase yielded $40m in fuel savings in 2024, with $90m projected in 2025 and $125.6m expected annually by 2026.”

It is unclear what is meant by “LNG roll-out” as the contract to develop and construct the Clifton Pierbased LNG regasification terminal has only just been signed and, with the facility yet to be constructed, the fuel has yet to be used to generate electricity anywhere in The Bahamas.

It is more likely that the Government is referring to savings produced by an improved fuel mix at BPL, with more reliance on cheaper heavy fuel oil (HFO) to power its

generators as opposed to the more expensive heavy fuel oil (HFO). Mr Rahming, in a written response to Tribune Business inquiries, while acknowledging the mentioned “pricing pressures” asserted this did not necessarily translate into higher BPL bills for all.

He said: “‘Price pressures’ refer to the reality that, during this transition period, we continue to operate in a fuel price-volatile environment. Until the full suite of power purchase agreements (PPAs) and infrastructure upgrades are brought online, we remain partially reliant on legacy systems and global oil markets, which do not guarantee stable or predictable pricing.

“This does not mean that electricity prices are rising across the board; it means that we are still exposed to short-term fluctuations beyond our control. However, through the efforts of the ‘New Energy Era’, we are actively limiting our long-term exposure and risk. The $1.182bn in committed investmentsdelivered through PPPs and strategic financing arrangements - represent more than capital deployment; they are risk mitigation tools.

“By shifting our generation mix toward cleaner, more efficient technologies such as LNG, solar and battery storage, we are replacing the volatility of diesel and heavy fuel oil with the predictability of diversified supply and long-term energy contracts. These investments are already delivering results.”

Mr Rahming referred to the $40m in fuel savings enjoyed by BPL and its customers in 2024, adding: “We expect that figure to more than double in 2025 and reach over $125m in annual savings by 2026.” He also explained that the near$19m Family Island savings will arrive “once microgrid deployment and generation upgrades are complete”.

“The reforms underway are not just about infrastructure - they are about transforming how we manage risk, stabilise costs and secure energy sovereignty for future generations. This transition is carefully staged to protect consumers now while unlocking long-term affordability, reliability and economic opportunity across The Bahamas,” Mr Rahming concluded.

A near-term increase in energy bills as a temporary consequence of far-reaching reforms is not unusual. A similar outcome was projected for the overhaul planned by the Minnis administration, as electricity costs were forecast to rise in the first two-three years due to the additional charge that was to be added to bills to repay investors who bought into the now-abandoned $535m rate reduction bond (RRB) refinancing.

That increased charge was to be ultimately offset by the savings produced from switching to lower costs fuels such as LNG, and efficiency gains in both generation and transmission and distribution (T&D), resulting in lower costs for consumers and decreased energy bills - just as the Davis administration is forecasting Several observers, speaking on condition of anonymity, yesterday

suggested the Government was trying to “obscure” the possibility that energy bills for both Bahamian businesses and households will likely increase between now and 2027 until the savings associated with switching to cheaper generation fuels, and more efficient generation and electrical grid systems, offset the costs associated with the upgrades.

“It was a 15 percent surcharge that was going to be added on to the base rate to cover the RRB element,” one source said of the Minnis administration’s plans. “Bills would have been higher in the interim until the long-term savings kick-in. I suspect something similar is going on here, but the Government needs to explain that.

“If their models tell them about the cost savings nine years from now, they will also have quantified any temporary increase. There’s no good reason they can predict savings nine years from now, but cannot quantify a short-term increase.”

The “nine years from now” refers to a subsequent section in the Government’s report that forecasts BPL consumers will enjoy “retail price reductions of up to 5.8 cents per kilowatt hour” by 2034 compared to what is described as the “diesel baseline”. The latter is not defined, but likely means fuel charges consumers will

face without any reform and BPL relying mainly on the more expensive ADO fuel.

Another contact, with energy industry experience, said it was impossible to verify the Government’s multitude of figures and energy cost savings projections without it releasing all the PPA and other agreements it has entered into with independent power producers and Bahamas Grid Company, plus its economic modelling of the reforms.

“If these guys are serious they will make their arrangements public and the financial models public that lay out how they arrived at these savings,” the source added. Mr Davis has previously signalled he plans to do just that, and table all PPA agreements and other energy reformrelated documents in the House of Assembly, once all documents are signed.

“Over the medium term, pricing reforms and energy diversification are expected to reduce end-user prices across all customer categories,” the report tabled yesterday said. “By financial year 2031, fuel savings from LNG and solar deployment are projected to reach $112m annually. Of this, up to $62m per year will be used to retire debt by financial year 2034.”

That debt is likely the $500m said to be owed by BPL, and the report added: “Retail price reductions of up to 5.8 cents per kilowatt hour are projected by financial year 2034. By eliminating expensive rental generation and reducing fuel import exposure, the utility will shed approximately $43m annually in avoidable operating expenses.

“Smart grid investments will drive technical losses below 8 percent by financial year 2028, further reducing the unit cost of electricity. This structural shift is expected to increase economic competitiveness. Tourism, logistics and

manufacturing sectors will benefit from lower energy overhead, enabling reinvestment, job creation and better price predictability for local and export markets.”

The Davis administration also pledged to introduce a $240 energy credit for low income households numbering over 12,000. “The affordability agenda also includes safeguards for vulnerable consumers. A targeted energy credit programme of $240 per year is being rolled out for low income households,” the report added.

“An appliance efficiency programme is being developed to replace outdated refrigerators, air conditioning units and lighting, with anticipated energy savings of 12 to 18 percent per household. A new national database of over 12,000 vulnerable households is being created to coordinate outreach, financial support and demand-side education.

“Equity Rate Adjustment (ERA) protections will remain in place through at least financial year 2030 and be adjusted annually based on inflation and wage indexation.... In the short-term, targeted rate adjustments and fuel optimisation are shielding consumers from global price volatility,” the document continued.

“In the medium term, LNG, solar and operational efficiencies will drive prices lower. By financial year 2034, customers could see reductions of up to 5.8 cents per kilowatt hour compared to the diesel-based baseline. Affordability will no longer rest on subsidies alone. It will be embedded in system efficiency, smarter tariff structures and longterm resilience. Energy will no longer be a burden, but a platform for economic security, competitiveness and inclusive growth.”

LATRAE RAHMING

Jen Psaki stepping up for MSNBC as Rachel Maddow returns to once-a-week schedule

By DAVID BAUDER AP Media Writer

JEN Psaki is stepping up — not to a podium, but to MSNBC's flagship time slot.

Former President Joe Biden's first White House press secretary, who began hosting her Sunday show "Inside" in 2023 for the network, will move regularly to prime-time starting on May 6.

She'll take over Rachel Maddow's 9 p.m. Eastern weekday hour on Tuesday through Friday when Maddow resumes her onenight-a-week schedule on Mondays. Maddow has been hosting five nights a week for the beginning of the second Trump administration.

Psaki replaces Alex Wagner, who had the daunting task of trying to hold onto as many viewers of MSNBC's most popular personality as she could.

Psaki's selection was one of the early moves for new MSNBC president Rebecca Kutler, who is also navigating MSNBC's corporate divorce from NBC News.

With the new schedule comes a new name for Psaki's program, "The Briefing." Her Sunday show will end.

Psaki talked with The Associated Press about her new role, and a little about her past in the White House, at an admittedly hard time for MSNBC's predominantly liberal viewers. "Part of my job," she said, "is to tell stories of hope."

ASSOCIATED PRESS:

For people who have followed your work at MSNBC, should they expect much different from the new show?

PSAKI: We're changing the name, so there's that difference ... There are things that we will continue to do — like big newsmakers and conversations about policy, what it means for people sitting at home, hopefully some surprising guests sometimes, the future of the Democratic Party ... One of the reasons we wanted to change the name, or I wanted to change the name, is that it feels like a moment postelection and the months since we're all reflecting on the notion that people on the inside or insiders have all the answers is incorrect. I didn't want to send the message to viewers that that was our assumption. The second is I think right now in this moment, as the federal government is being dismantled and the rule of law is being threatened, people's rights are being threatened, there's a huge appetite for information and understanding of what the heck is happening.

AP: Does going into a time slot identified with Rachel for so many years affect how you put together your show? Do you have to be cognizant of her audience?

PSAKI: There's only one Rachel Maddow. She's built, obviously, an incredible connection with the people who have watched for 17 years. Even if I trained at the Rachel Maddow anchor school — which doesn't exist, that I'm aware of — for five years, I could never do what she does how she does it. What I'm taking with me and what I'm trying to apply are a lot of the lessons I've learned from her over the past couple of years, one of them being that she works her tail off. She never rests

on the laurels of the success she's had over the course of time. She's pretty fearless about saying what she thinks, and she tells stories that not everybody does. Those things kind of stick with me. We have very different backgrounds. I spent two decades working for two presidents and a secretary of state and have been on more campaign buses that I could ever recall or list for you. Obviously our show is based in Washington, D.C., which is a difference, too. Every day I'm going to lean into that experience and background to help provide clarity for people who are watching.

AP: You've had time to see Karoline Leavitt in your old role (White House press secretary). How do you think she's doing?

PSAKI: If the job were just about being able to command a room and speak on behalf of the president you're working for, then she would have higher marks in my view than many of her predecessors. I think the challenge, though, is that that's not the totality of your job. The job is also about sharing up-to-date, accurate information and taking tough questions. And when you're selecting who's in the briefing room, who is in the Oval Office, kicking out, frankly, wire reporters who are there to tell the story of exactly what is happening, and when you're echoing at times what I would consider to be Kremlin talking points, I'm not sure you're doing justice to what the job is intended to be and what many of her predecessors — Democrats and Republicans — have done.

AP: She makes the point that there needs to be change in how the press

room is constituted and operates. Do you think it's inappropriate that she's trying to determine who is in position to question the president, or is that part of her job?

PSAKI: You always have to modernize what that job is doing and that's important, and I think any of her predecessors including me would agree with that. Sean Spicer, you can criticize him all you want, but he did bring in a video screen and include regional reporters in the (briefing) room at times. I think there are interesting things that can be done and I'm a full supporter of that, including the different outlets that have access to the briefing room and the president. But there's a difference between doing that and kicking out people who have institutional knowledge, who have a historic, decades-long record of telling accurate, up-to-date stories to the public for good or bad about about the president, whoever the president may be, kicking them out and replacing them with people who are clearly biased to the person you're working for. And you can tell by the kind of questions that are being asked.

AP: There's a feeling among some people that President Biden's people hid the effects of his age from the public. Do you think that's fair and what would you say to people who suggest you played a role in doing that, too?

PSAKI: I left three years ago, in May of 2022. I never saw publicly, obviously, or privately the person that people saw on the debate stage that night in June less than a year ago. I've only seen him once since then. In my time working for him

he was, yes, a man who was over 80 years old. It wasn't a secret. His age was not a secret, including to the millions of people who voted for him. But also a person who, when I worked for him, who could move quickly from engaging in a conversation about a political race to calling a European leader to having a three-hour meeting about COVID and the COVID response. So that was my experience working for him. Aging can happen quickly. I'm not a doctor or an expert on that, but all I can speak to is what my interactions were with him.

WHITE House press secretary Jen Psaki speaks during a press briefing at the White House, Jan. 28, 2021, in Washington. Photo:Evan Vucci/AP

THE WORLD’S BIGGEST COMPANIES HAVE CAUSED $28

TRILLION IN CLIMATE DAMAGE, A NEW STUDY ESTIMATES

By SETH BORENSTEIN AP Science Writer

THE world's biggest corporations have caused $28 trillion in climate damage, a new study estimates as part of an effort to make it easier for people and governments to hold companies financially accountable, like the tobacco giants have been.

A Dartmouth College research team came up with the estimated pollution caused by 111 companies, with more than half of the total dollar figure coming from 10 fossil fuel providers: Saudi Aramco, Gazprom, Chevron, ExxonMobil, BP, Shell, National Iranian Oil Co., Pemex, Coal India and the British Coal Corporation.

For comparison, $28 trillion is a shade less than the sum of all goods and services produced in the United States last year.

At the top of the list, Saudi Aramco and Gazprom have each caused a bit more than $2 trillion in heat damage over the decades, the team calculated in a study published in Wednesday's journal Nature. The researchers

figured that every 1% of greenhouse gas put into the atmosphere since 1990 has caused $502 billion in damage from heat alone, which doesn't include the costs incurred by other extreme weather such as hurricanes, droughts and floods.

People talk about making polluters pay, and sometimes even take them to court or pass laws meant to rein them in.

The study is an attempt to determine "the causal linkages that underlie many of these theories of accountability," said its lead author, Christopher Callahan, who did the work at Dartmouth but is now an Earth systems scientist at Stanford University. The research firm Zero Carbon Analytics counts 68 lawsuits

filed globally about climate change damage, with more than half of them in the United States.

"Everybody's asking the same question: What can we actually claim about who has caused this?" said Dartmouth climate scientist Justin Mankin, co-author of the study. "And that really comes down to a thermodynamic question of can we trace climate hazards and/ or their damages back to particular emitters?"

The answer is yes, Callahan and Mankin said.

The researchers started with known final emissions of the products — such as gasoline or electricity from coal-fired power plants — produced by the 111 biggest carbon-oriented companies going as far back as 137 years, because that's as far

“It would be good in my view if this approach would be taken up more by different groups. As with event attribution, the more groups do it, the better the science gets and the better we know what makes a difference and what does not.”

Friederike Otto

back as any of the companies' emissions data go and carbon dioxide stays in the air for much longer than that. They used 1,000 different computer simulations to translate those emissions into changes for Earth's global average surface temperature by comparing it to a world without that company's emissions. Using this approach, they determined that pollution from Chevron, for example, has raised the Earth's temperature by .045 degrees Fahrenheit (.025 degrees Celsius).

The researchers also calculated how much each company's pollution contributed to the five hottest days of the year using 80 more computer simulations and then applying a formula that connects extreme heat intensity to changes in economic output.

This system is modeled on the established techniques scientists have been using for more than a decade to attribute extreme weather events, such as the 2021 Pacific Northwest heat wave, to climate change.

Mankin said that in the past, there was an argument of, "Who's to say that it's my molecule of CO2 that's contributed to these damages versus any other one?" He said his study "really laid clear how the veil of plausible deniability doesn't exist anymore scientifically. We can actually trace harms back to major emitters."

Shell declined to comment. Aramco, Gazprom, Chevron, Exxon Mobil and BP did not respond to requests for comment.

"All methods they use are quite robust," said Imperial College London climate scientist Friederike Otto, who heads World Weather Attribution, a collection of scientists who try rapid attribution studies to see if specific extreme weather events are worsened by climate change and, if so, by how much. She didn't take part in the study.

"It would be good in my view if this approach would be taken up more by different groups. As with event attribution, the more groups do it, the better the science gets and the better we know what makes a

difference and what does not," Otto said. So far, no climate liability lawsuit against a major carbon emitter has been successful, but maybe showing "how overwhelmingly strong the scientific evidence" is can change that, she said.

In the past, damage caused by individual companies were lost in the noise of data, so it couldn't be calculated, Callahan said.

"We have now reached a point in the climate crisis where the total damages are so immense that the contributions of a single company's product can amount to tens of billions of dollars a year," said Chris Field, a Stanford University climate scientist who didn't take part in the research.

This is a good exercise and proof of concept, but there are so many other climate variables that the numbers that Callahan and Mankin came up with are probably a vast underestimate of the damage the companies have really caused, said Michael Mann, a University of Pennsylvania climate scientist who wasn't involved in the study.

THE CHEVRON Richmond Refinery in this view from Point Richmond, Calif., Tuesday, Oct. 24, 2023.

Photo:Eric Risberg/AP

Ex-OpenAI workers ask California and Delaware AGs to block for-profit conversion of ChatGPT maker

By MATT O'BRIEN AP Technology Writer

FORMER employees of OpenAI are asking the top law enforcement officers in California and Delaware to stop the company from shifting control of its artificial intelligence technology from a nonprofit charity to a for-profit business.

They're concerned about what happens if the ChatGPT maker fulfills its ambition to build AI that outperforms humans, but is no longer accountable to its public mission to safeguard that technology from causing grievous harms.

"Ultimately, I'm worried about who owns and controls this technology once it's created," said Page Hedley, a former policy and ethics adviser at OpenAI, in an interview with The Associated Press.

Backed by three Nobel Prize winners and other advocates and experts, Hedley and nine other exOpenAI workers sent a letter this week to the two state attorneys general.

The coalition is asking California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings, both Democrats, to use their authority to protect OpenAI's charitable purpose and block its planned restructuring. OpenAI is incorporated in Delaware and operates out of San Francisco.

OpenAI said in response that "any changes to our existing structure would be in service of ensuring the broader public can benefit from AI." It said its for-profit will be a public benefit corporation, similar to other AI labs like Anthropic and tech billionaire Elon Musk's xAI, except that OpenAI will still preserve a nonprofit arm.

"This structure will continue to ensure that as the for-profit succeeds and grows, so too does the nonprofit, enabling us

to achieve the mission," the company said in a statement.

The letter is the second petition to state officials this month. The last came from a group of labor leaders and nonprofits focused on protecting OpenAI's billions of dollars of charitable assets. Jennings said last fall she would "review any such transaction to ensure that the public's interests are adequately protected."

Bonta's office sought more information from OpenAI late last year but has said it can't comment, even to confirm or deny if it is investigating.

OpenAI's co-founders, including current CEO Sam Altman and Musk, originally started it as a nonprofit research laboratory on a mission to safely build what's known as artificial general intelligence, or AGI, for humanity's benefit. Nearly a decade later, OpenAI has reported its market value as $300 billion and counts 400 million weekly users of ChatGPT, its flagship product.

OpenAI already has a for-profit subsidiary but faces a number of challenges in converting its core governance structure. One is a lawsuit from Musk, who accuses the company and Altman of betraying the founding principles that led the Tesla CEO to invest in the charity.

While some of the signatories of this week's letter support Musk's lawsuit, Hedley said others are "understandably cynical" because Musk also runs his own rival AI company. The signatories include two Nobel-winning economists, Oliver Hart and Joseph Stiglitz, as well as AI pioneers and computer scientists Geoffrey Hinton, who won last year's Nobel Prize in physics, and Stuart Russell.

"I like OpenAI's mission to 'ensure that artificial general intelligence benefits all

of humanity,' and I would like them to execute that mission instead of enriching their investors," Hinton said in a statement Wednesday. "I'm happy there is an effort to hold OpenAI to its mission that does not involve Elon Musk."

Conflicts over OpenAI's purpose have long simmered at the San Francisco institute, contributing to Musk quitting in 2018, Altman's short-lived ouster in 2023 and other high-profile departures.

Hedley, a lawyer by training, worked for OpenAI in 2017 and 2018, a time when the nonprofit was still navigating the best ways to steward the technology it wanted to build. As recently as 2023, Altman said advanced AI held promise but also warned of extraordinary risks, from drastic accidents to societal disruptions.

In recent years, however, Hedley said he watched with concern as OpenAI, buoyed by the success of ChatGPT, was increasingly cutting corners on safety testing and rushing out new products to get ahead of business competitors.

"The costs of those decisions will continue to go up as the technology becomes more powerful," he said. "I think that in the new structure that OpenAI wants, the incentives to rush to make those decisions will go up and there will no longer be anybody really who can tell them not to, tell them this is not OK."

Software engineer Anish Tondwalkar, a former member of OpenAI's

technical team until last year, said an important assurance in OpenAI's nonprofit charter is a "stopand-assist clause" that directs OpenAI to stand down and help if another organization is nearing the achievement of better-thanhuman AI.

"If OpenAI is allowed to become a for-profit, these safeguards, and OpenAI's duty to the public can vanish overnight," Tondwalkar said in a statement Wednesday.

Another former worker who signed the letter puts it more bluntly.

"OpenAI may one day build technology that could get us all killed," said Nisan Stiennon, an AI engineer who worked at OpenAI from 2018 to 2020. "It is to OpenAI's credit that it's controlled by a nonprofit with a duty to humanity. This duty precludes giving up that control."

By JOSH FUNK AP Business Writer

NORFOLK Southern's quarterly profits were again inflated by insurance payments related to its disastrous 2023 derailment in eastern Ohio, but even without that, the railroad's profits still grew.

The Atlanta-based railroad reported a major rebound in its results Wednesday with $750 million profit, or $3.31 per share, in the first quarter. Last year, the first quarter results of $53 million, or 23 cents per share, were held down by the $600 million class action settlement the railroad agreed to pay residents near the East Palestine derailment.

Since last year's second quarter, Norfolk Southern has been consistently collecting more in insurance payments than it was spending on the derailment cleanup and response, so its bottom line has received a boost each of the last several quarters. In the first quarter, the insurance payments boosted the railroad's net income by $141 million. Without that, it would have earned $609 million, or $2.69 per share, compared to $2.49 per share last year.

Wall Street analysts focus on ongoing operations, which strips out the insurance windfall, and by that measure the railroad beat the average estimate reported by FactSet Research by 3 cents per share. The railroad has received close to $1 billion in insurance payments to date to help cover

the roughly $2 billion it has spent since the East Palestine derailment. Chief Financial Officer Jason Zampi said he expects less than $100 million in remaining insurance payments to come in. The railroad's revenue was essentially flat at just under $3 billion, but it was able to continue cutting expenses as part of its larger effort to get more efficient even as it dealt with roughly $35 million of winter storm related costs.

Norfolk Southern CEO Mark George said the railroad overcame disruptive winter weather during the first three months of the year to improve service and efficiency. The railroad also delivered about 1% more shipments in the quarter because consistent service is helping it win new business. Norfolk Southern's main competitor in the East, CSX railroad, posted a 1% decline in volume during the quarter as two major construction projects and the storms disrupted its network, so it appears that some shipments shifted between the two railroads.

"Our service performance is increasing our customers' confidence in Norfolk Southern and allowing us to gain share," George said in a statement.

He still predicts that Norfolk Southern will generate another $150 million of productivity improvements this year while seeing revenue grow roughly 3% although the overall economy could derail that if it takes a downturn after President Donald Trump's tariffs all take effect.

Wall Street rises and markets rally worldwide as Trump softens his tough talk on tariffs and the Fed

By STAN CHOE AP Business Writer

U.S. stocks rose Wednesday as a worldwide rally came back around to Wall Street after President Donald Trump appeared to back off his criticism of the Federal Reserve and his tough talk in his trade war.

The S&P 500 climbed 1.7% and added to its big gain from Tuesday that more than made up for a steep loss on Monday. The Dow Jones Industrial Average rose 419 points, or 1.1%, and the Nasdaq composite gained 2.5%.

Wall Street's gains followed strong moves higher for stocks across much of Europe and Asia. They also continued a dizzying, upand-down run for financial markets as investors struggle with how to react to so much uncertainty about

NOTICE TO SHAREHOLDERS

The Board of Directors of Finance Corporation of Bahamas Limited hereby notifies its Shareholders that a dividend payment of fifteen cents ($0.15) per Ordinary share will be paid on 8th May 2025 to all Shareholders of record as at 1st May 2025.

what Trump will do with his economic policies.

The market's latest move was up in part because Trump said late Tuesday that he has "no intention" to fire the head of the Federal Reserve. Trump had been angry with Jerome Powell, whom Trump had called "a major loser," because of the Fed's hesitance to cut interest rates.

Trump's tough talk had frightened investors because the Fed is supposed to act independently, without pressure from politicians, so that it can make decisions that may be painful in the short term but are best for the long term.

While a cut to interest rates by the Fed could give the economy a boost, it could also put upward pressure on inflation. Economists say Trump's tariffs are likely both to slow the economy and to raise inflation, at least briefly.

Trump may have recognized the market's fear about a move against Powell. He may also be looking to keep someone around whom Trump could blame later if the economy does fall into a recession, according to Thierry Wizman, a strategist at Macquarie.

"Indeed, if the Fed cuts its policy interest rates aggressively, Trump would have little excuse for a recession apart from the pugnacity of his tariff policies," Wizman said.

Markets also rose after Trump said late Tuesday that U.S. tariffs on imports coming from China could come down "substantially" from the current 145%. "It won't be that high, not going to be that high," Trump said.

The hope along Wall Street has been that Trump would lower his tariffs after negotiating trade deals with other countries, and Trump said Tuesday he would be "very nice" to the world's second-largest economy

and not play hardball with Chinese President Xi Jinping.

"There is an opportunity for a big deal here," U.S. Treasury Secretary Scott Bessent said Wednesday. If Trump brings his tariffs down enough, investors believe a recession could be averted.

U.S. businesses say they're already feeling the effects of the trade war. A preliminary reading of U.S. business activity fell to a 16-month low, as the threat of tariffs helped push up prices charged for goods and services, according to S&P Global's latest survey released Wednesday. All the uncertainty means one of the few predictions many along Wall Street are willing to make is that sharp swings for financial markets will continue for a while.

The market will "more likely than not continue to be dictated by Trump's latest whims regarding tariffs and trade," said Tim Waterer, chief market analyst at KCM Trade.

The S&P 500 remains 12.5% below its record set earlier this year after briefly dropping roughly 20% below the mark. Its swings have been coming not just day to day but also hour to hour as Trump and his administration's officials continue to surprise markets. On Wednesday alone, the S&P 500 charged to a 3.4% gain in the morning, only to more than halve that rise as the day progressed. Trump's latest comments had a relaxing effect on the bond market, where Treasury yields eased. It's a turnaround from earlier this month, when spiking Treasury yields raised fears that Trump's actions were scaring investors away from the United States and weakening the U.S. bond market's reputation as one of the safest places to keep cash.

The yield on the 10-year Treasury fell to 4.38%

NOTICE TO SHAREHOLDERS

from 4.41% late Tuesday. It dropped as low as 4.26% earlier in the morning.

On Wall Street, Big Tech helped lead stock indexes higher.

Nvidia rose 3.9% to claw back more of the sharp losses it took last week, when it said U.S. restrictions on exports of its H20 chips to China could hurt its first-quarter results by $5.5 billion. The chip company's stock was the strongest single force lifting the S&P 500.

Other stocks in the artificial-intelligence technology ecosystem also drove higher. Vertiv Holdings, which traces its roots to the industry's first manufacturer of computer room air conditioning, jumped 8.5% after reporting stronger profit and revenue for the latest quarter than analysts expected. It said it's continuing to see accelerated demand from AI data centers.

Super Micro Computer, a company that makes servers used in AI, rose 7.6%. Palantir Technologies, which offers an AI platform for customers, climbed 7.3%.

Tesla revved 5.4% higher after CEO Elon Musk said he'll spend less time in Washington and more time running his electric vehicle company after Tesla on late Tuesday reported a big drop in profits. It's been struggling because of backlash against Musk's efforts to lead cost-cutting efforts by the U.S. government. All told, the S&P 500 rose 88.10 points to 5,375.86. The Dow Jones Industrial Average added 419.59 to 39,606.57, and the Nasdaq composite gained 407.63 to 16,708.05. In stock markets abroad, indexes jumped 2.1% in France, 2.4% in Hong Kong and 1.9% in Japan. Stocks in Shanghai were an exception, where they dipped 0.1%.

The Board of Directors of Finance Corporation of Bahamas Limited hereby notifies its Shareholders that an extraordinary dividend payment of one dollar and twenty-five cents ($1.25) per Ordinary Share will be paid on 8th May 2025 to all Shareholders of record as at 1st May 2025.

TRADER Fred Demarco works on the floor of the New York Stock Exchange, Wednesday, April 23, 2025.

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The European Union hits Apple and Meta with 700 million euros in fines, first under digital rules

By KELVIN CHAN AP Business Writer

EUROPEAN Union

watchdogs fined Apple and Meta hundreds of millions of euros Wednesday as they stepped up enforcement of the 27-nation bloc's digital competition rules.

The European Commission imposed a 500 million euro ($571 million) fine on Apple for preventing app makers from pointing users to cheaper options outside its App Store.

The commission, which is the EU's executive arm, also fined Meta Platforms 200 million euros because it forced Facebook and Instagram users to choose between seeing personalized ads or paying to avoid them.

The punishments were smaller than the blockbuster multibillion-euro fines that the commission has previously slapped on Big Tech companies in antitrustcases.

Apple and Meta have to comply with the decisions within 60 days or risk unspecified "periodic penalty payments," the commission said.

The decisions were expected to come in March, but the self-imposed deadline slipped amid an escalating trans-Atlantic trade war with U.S. President Donald Trump, who has repeatedly complained about regulations from Brussels affecting American companies.

The penalties were the first issued under the EU's Digital Markets Act, also known as the DMA. It's a sweeping rule book that amounts to a set of do's and don'ts designed to give consumers and businesses more choice and prevent Big Tech "gatekeepers" from cornering digital markets.

The DMA seeks to ensure "that citizens have full control over when and how their data is used online, and businesses can freely communicate with their own customers," Henna Virkkunen, the commission's executive vice president for tech sovereignty, said in a statement.

"The decisions adopted today find that both Apple and Meta have taken away this free choice from their

users and are required to change their behavior," Virkkunen said. Both companies indicated they would appeal. Apple accused the commission of "unfairly targeting" the iPhone maker, and said it "continues to move the goalposts" despite the company's efforts to comply with the rules.

Meta Chief Global Affairs Officer Joel Kaplan said in a statement that the "Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards."

In a press briefing in Brussels, commission spokespeople sought to tamp down concerns that the penalties would inflame trade tensions.

"We don't care who owns a company. We don't care where the company is located," commission spokesperson Thomas Regnier told reporters. "We are totally agnostic on that front."

"And be it a Chinese company, be an American company, or be it a European company, you will have to play by the rules in the European Union."

In the App Store case, the Commission had accused the iPhone maker of imposing unfair rules preventing app developers from freely steering consumers to other channels.

Among the DMA's provisions are requirements to let developers inform customers of cheaper purchasing options and direct them to those offers.

The commission said it ordered Apple to remove technical and commercial restrictions that prevent developers from steering users to other channels, and to end "noncompliant" conduct.

Apple said it has "spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for."

"Despite countless meetings, the Commission continues to move the goalposts every step of the way," the company said.

The EU's Meta investigation centered on the company's strategy to comply with strict European data privacy rules by giving users the option of paying for ad-free versions of Facebook and Instagram.

Users could pay at least 10 euros ($11.40) a month to avoid being targeted by ads based on their personal data. The U.S. tech giant rolled out the option after the European Union's top court ruled Meta must first get consent before showing ads to users.

Regulators took issue with Meta's model, saying it doesn't allow users to exercise their right to "freely consent" to allowing their personal data from its various services, which also including Facebook Marketplace, WhatsApp, and Messenger, to be combined for personalized ads.

Meta rolled out a third option in November giving Facebook and Instagram users in Europe the choice to see fewer personalized ads if they don't want to

pay for an ad-free subscrip-

tion. The commission said it's "currently assessing" this option and continues to hold talks with Meta, and has asked the company to provide evidence of the new option's impact.

"This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multibilliondollar tariff on Meta while requiring us to offer an inferior service," Kaplan said.

"And by unfairly restricting personalized advertising the European Commission is also hurting European businesses and economies."

The EU has already sanctioned Apple under the DMA, but it didn't involve a fine. The bloc took action earlier this year to compel the company to open up its iPhone and iPad operating systems by outlining the steps it must take to work better with competing technologies.

THE META logo is seen at the Vivatech show in Paris, France, June 14, 2023.

Photo:Thibault Camus/AP

Tariff turmoil: How Tesla and other companies are dealing with the trade war’s uncertainty

By DAMIAN J. TROISE AP Business Writer

UNCERTAINTY over tariffs and an unpredictable trade war is weighing heavily on companies as they report their latest financial results and try to give investors financial forecasts.

Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture has been shifting for months, sometimes changing drastically on a daily basis. Those shifts make it difficult for companies and investors to make a reliable assessment of any impact to costs and sales.

On Tuesday, Treasury Secretary Scott Bessent said he expects a "de-escalation" in the trade war between the U.S. and China, but cautioned that talks between the two sides had yet to formally start.

Here's how several big companies are dealing with the tariff confusion:

Chipotle

Chipotle Mexican Grill said Wednesday that its costs are rising due to the tariffs.

The Tex-Mex chain said it gets some beef from Australia and packaging from Vietnam, Indonesia and Thailand. It also sources avocados from Colombia and Peru. All are now subject to a 10% tariff.

The tariffs may also impact the cost of building new restaurants, since

items like shelving and parts for equipment come from China, Chipotle Chief Financial Officer Adam Rymer said during a conference call with investors. But Rymer said the impact of the tariffs on imports from China is harder to predict. This week, Trump administration officials have said they expect a "de-escalation" in the trade war between the U.S. and China.

Chipotle reported weaker-than-expected revenue in the January-March period and lowered its outlook for full-year samestore sales.

CEO Scott Boatwright said concern about

the economy was the "overwhelming reason" consumers reduced their visits to Chipotle during the quarter. That trend has continued through April, he said.

Tesla

Tesla is in a better position than most car companies to deal with tariffs because it makes most of its U.S. cars domestically. But it still sources materials from other nations and will face import taxes.

The bigger impact will be seen in the company's energy business. The company said the impact will be "outsized" because it

Judge rules federal government owes nearly $28 million to North Dakota for pipeline protests

By JACK DURA Associated Press

sources LFP battery cells from China.

The broader trade war could also hurt the company as China, the world's largest electric vehicle market, retaliates against the U.S. Tesla was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.

CEO Elon Musk, an adviser to President Donald Trump, on Tuesday reiterated that he believes "lower tariffs are generally a good idea for prosperity." But he added that ultimately the

president decides on what tariffs to impose.

Akzo Nobel

The Amsterdam-based maker of paints and coatings for industrial and commercial use said the big risk from tariffs could come in the form of lower demand for its products.

The company said almost all sales of finished goods in the U.S. were locally produced, with the majority of raw materials locally sourced.

"Over the years, we deliberately localized both our procurement and production in the U.S.," said CEO Gregoire Poux-Guillaume, in a conference call with analysts. "We also largely run China for China and use the rest of Asia instead as an export base."

The company's products range from paints and coatings for the automotive industry to the do-it-yourself homeowner. Broader tariffs could squeeze consumers and businesses and hurt sales.

Boston Scientific

The medical device maker said it expects most of the effecs of tariffs to hit the company during the second half of the year, but that it can absorb the impact.

The company raised its earnings and revenue forecasts for the year, despite the tariffs. It estimates a $200 million impact from tariffs in 2025, but said it can offset that through higher sales and reductions in discretionary spending.

The company said it has a long-standing supply chain around the globe and has made significant investments in the U.S. Boeing Boeing said much of its supply chain is in the U.S. and many of its imports from Canada and Mexico are exempt from tariffs under an existing trade agreement.

The company does have suppliers in Japan and Italy, but it expects to recover those tariff costs. The net annual cost of higher tariffs on the supply chain is less than $500 million.

A bigger concern is the potential for retaliatory tariffs, which could impact its ability to deliver aircraft. China, a key target for U.S. tariffs, has retaliated in part by no longer accepting deliveries of Boeing aircraft.

AT&T

AT&T, like its peers in the telecommunications sector, faces higher costs for cellphones and other equipment.

The company said it believes it can manage anticipated higher costs, based on the current pause in some tariffs and its supply chain.

"The magnitude of any increase will depend on a variety of factors, including how much of the tariffs the vendors pass on, the impact that the tariffs have on consumer and business demand," said CEO John Stankey, on a conference call with analysts.

A FEDERAL judge on Wednesday found the state of North Dakota entitled to nearly $28 million for responding to protests of the Dakota Access oil pipeline in 2016 and 2017 — a win for the state in its multiyear effort to recoup the costs from the federal government. The state filed the lawsuit in 2019, seeking $38 million for policing the protests. The sometimes-chaotic demonstrations drew international attention for the Standing Rock Sioux Tribe’s opposition to the pipeline’s Missouri River crossing upstream of the tribe’s reservation. The tribe has long opposed the pipeline, fearing an oil spill polluting its water supply. A trial played out over several weeks in early 2024 in federal court in Bismarck, the state capital. People who testified included former North Dakota governors Doug Burgum, who took office in December 2016 during the protests’ height, and Jack Dalrymple, whose administration responded to the protests’ early months.

The judge wrote: “The bottom line: United States had a mandatory procedure, it did not follow that procedure, and harm occurred to the state of North Dakota. The law allows reimbursement for this harm. More than that, the rule of law requires this Court to hold the United States liable to remind it of its role in the larger picture of ensuring peace, not chaos.”

U.S. District Judge Daniel Traynor found the U.S. Army Corps of Engineers liable to the state on all claims and for more than $27.8 million in damages.

Thousands of people camped and demonstrated against the pipeline near the crossing for months, resulting in hundreds of arrests. Sometimes-violent clashes occurred between protesters and law enforcement officers. Law enforcement

officers from around the state and region responded to the protests. The protest camps were cleared in February 2017. An attorney for the state said the protests ended in a response of more than seven months involving 178 agencies, resulting in 761 arrests and requiring four days of cleanup of the camp to remove millions of pounds of trash. In a joint statement, Gov. Kelly Armstrong and Attorney General Drew Wrigley said: “As outlined in trial testimony and Judge Traynor’s ruling, decisions made by the Obama administration emboldened protestors and ultimately caused millions of dollars in damage to North Dakota, while endangering the health and safety of North Dakota

communities, families and law enforcement officers who responded to the protests.”

The state’s claims included negligence, gross negligence, civil trespass and public nuisance.

Attorneys for the government said at trial that U.S. Army Corps of Engineers officials “acted reasonably given limited options at their disposal” during the protests, and that the state’s claim is “greatly overstated.” The government asked the judge to find a lack of legal jurisdiction for the state’s claims, that the state hasn’t proven its claims and is not entitled to damages.

The pipeline has been transporting oil since June 2017. Many state government officials and industry leaders support the pipeline

as crucial infrastructure in the country’s No. 3 oil-producing state. The pipeline carries roughly 5% of the United States’ daily oil production.

In 2017, the pipeline company, Energy Transfer, donated $15 million to help cover the response costs. That same year, the U.S. Justice Department gave a $10 million grant to the state for reimbursing the response. The judge found the former to be a gift and reduced the latter from the state’s total recovery.

Then-President Donald Trump denied a 2017 request from the state for the federal government to cover the costs through a disaster declaration. The pipeline is operating while a court-ordered environmental review of the river crossing is carried out.

PEOPLE pass by a Tesla sign at the Manila International Auto Show in Pasay city, Philippines Friday, April 11, 2025.

Photo:Aaron Favila/AP

MUSK DAMAGED TESLA'S BRAND IN JUST A FEW MONTHS. FIXING IT WILL LIKELY TAKE LONGER

By BERNARD CONDON AP Business Writer

ELON Musk has been called a Moonshot Master, the Edison of Our Age and the Architect of the Future, but he's got a big problem at his car company and it's not clear he can fix it: damage to its brand.

Sales have plunged for Tesla amid protests and boycotts over Musk's embrace of far right-wing views. Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the U.S. are pouncing.

On Tuesday came some relief as Musk announced in an earnings call with investors that he would be scaling back his government cost-cutting job in Washington to a "day or two per week" to focus more on his old job as Tesla's boss.

Investors pushed up Tesla's stock 5% Wednesday, though there are plenty of challenges ahead.

Who wants a Tesla?

Musk seemed to downplay the role that brand damage played in the drop in first-quarter sales on the investor call. Instead, he emphasized something more fleeting — an upgrade to Tesla's best-selling Model Y that forced a shutdown of factories and pinched both supply and demand.

While financial analysts following the company have noted that potential buyers probably held back while waiting for the upgrade, hurting results, even the most bullish among them say the brand damage is real, and more worrisome.

"This is a full blown crisis," said Wedbush Securities' normally upbeat Dan Ives earlier this month.

In a note to its clients, JP Morgan warned of "unprecedented brand damage."

Musk's take on the protests

Musk dismissed the protests against Tesla on the

call as the work of people angry at his leadership of the Department of Government Efficiency because "those who are receiving the waste and fraud wish it to continue."

But the protests in Europe, thousands of miles from Washington, came after Musk supported farright politicians there.

Angry Europeans hung Musk in effigy in Milan, projected an image of him doing a straight-arm salute on a Tesla factory in Berlin and put up posters in London urging people not to buy "Swasticars" from him.

Sales in Europe have gone into a free fall in the first three months of this year — down 39%. In Germany, sales plunged 62%.

Another worrying sign:

On Tuesday, Tesla backed off its earlier promise that sales would recover this year after dropping in 2024 for the first time a dozen years. Tesla said the global trade situation was too uncertain and declined to repeat the forecast.

Here come the rivals

Meanwhile, Tesla's competition is stealing its customers.

Among its fiercest rivals now is Chinese giant BYD. Earlier this year, the EV maker announced it had developed an electric battery that can charge within minutes. And Tesla's European rivals have begun offering new models with advanced technology that is making them real Tesla alternatives just as popular opinion has turned against Musk.

Tesla's share of the EV market in the U.S. has dropped from two-thirds to less than half, according to Cox Automotive.

Pinning hopes on cybercabs

Another rival, Google parent Alphabet, is already ahead of Tesla in an area

CALIFORNIA BAR DISCLOSES AI WAS USED TO DEVELOP SOME QUESTIONS IN PROBLEMPLAGUED FEBRUARY EXAM

LOS ANGELES

Associated Press

THE State Bar of Califor-

nia has disclosed that some multiple-choice questions in a problem-plagued bar exam were developed with the aid of artificial intelligence.

The legal licensing body said in a news release Monday that it will ask the California Supreme Court to adjust test scores for those who took its February bar exam.

"The debacle that was the February 2025 bar exam is worse than we imagined," Mary Basick, assistant dean of academic skills at the University of California, Irvine, Law School, told the Los Angeles Times. "I'm almost speechless. Having the questions drafted by non-lawyers using artificial intelligence is just unbelievable."

In February, the new exam led to complaints after many test-takers were unable to complete their bar exams. The online testing platforms repeatedly crashed before some applicants even started. Others struggled to finish and save essays, experienced screen lags and error messages and could not copy and paste text, the Times reported earlier.

According to a recent presentation by the State Bar, 100 of the 171 scored multiple-choice questions were made by Kaplan and 48 were drawn from a firstyear law students exam. A smaller subset of 23 scored questions were made by ACS Ventures, the State Bar's psychometrician, and developed with artificial intelligence.

"We have confidence in the validity of the (multiple-choice questions) to accurately and fairly assess the legal competence of testtakers," Leah Wilson, the State Bar's executive director, told the newspaper in a statement.

Katie Moran, an associate professor at the University of San Francisco School of Law who specializes in bar exam preparation, told the newspaper, "It's a staggering admission."

"The State Bar has admitted they employed a company to have a nonlawyer use AI to draft questions that were given on the actual bar exam," she said. "They then paid that same company to assess and ultimately approve of the questions on the exam, including the questions the company authored."

that Musk has promised will help remake his company: Cybercabs.

One of the highlights of Tesla's call Tuesday was Musk sticking with his previous prediction that it will l aunch driverless cabs without steering wheels and pedals in Austin, Texas, in June, and in other cities soon after.

But Google's service, called Waymo, already has logged millions of driverless cybercab trips in San Francisco, Phoenix, Los Angeles, and Austin as part of a partnership with ridehailing leader Uber.

A driverless future for Tesla owners?

Musk also told analysts that this driverless capability will be available on the Tesla vehicles already on the road through software updates over the air, and put a timeline on it: "There will be millions of Teslas operating autonomously in the second half of the year."

But he has made similar promises before, only to miss his deadlines, such

as in April 2019 when he vowed full automation by the end of the next year. He repeated the prediction, moving up the date, several more times, in following years.

A big problem is federal investigators have not given the all-clear that Tesla vehicles can drive completely on their own safely. Among other probes, safety regulators are looking into Tesla's so-called Full Self-Driving, which is only partial self-driving, for its tie to accidents in low-visibility conditions like when there is sun glare.

On the positive side

In competition with rivals in the U.S., Tesla currently has one clear advantage:

It will get hurt by less by tariffs because most of its vehicles are built in the countries where they are sold, including those in its biggest market, the U.S.

"Tariffs are still tough on a company where margins are still low, but we do have localized supply chains," Musk said Tuesday. "That puts us in a strong position."

The company also reconfirmed that a cheaper version of its best-selling vehicle, the Model Y sport utility vehicle, will be ready for customers in the first half of this year. That could help boost sales.

Pricey stock

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Even after falling nearly 50% from its December highs, Tesla's stock is still very richly valued based on the one yardstick that really matters in the long run: its earnings. At 110 times its expected per share earnings this year, the stock is valued more than 25 times higher than General Motors. The average stock on in the S&P 500 index trades at less than 20 times earnings. That leaves Tesla little margin for error if something goes wrong.

Another plus: The company had a blow out first quarter in its energy storage business. And Musk has promised to be producing 5,000 Optimus robots, another Tesla business, by the end of the year.

TESLA and SpaceX CEO Elon Musk walks to the stage to speak at the Butler Farm Show, Oct. 5, 2024, in Butler, Pa. Photo:Alex Brandon/AP

By JOSH FUNK Associated Press

THE company that owned the railcar that caused the devastating East Palestine train derailment in 2023 won't have to help pay for the $600 million settlement Norfolk Southern agreed to with residents.

An Ohio jury decided Wednesday that GATX isn't liable for the settlement even though the failure of a bearing on its railcar carrying plastic pellets caused the pileup on Feb. 3, 2023.

GATX has maintained Norfolk Southern operated and inspected the train and all the cars and was responsible for delivering the cargo safely.

"GATX is pleased with the trial outcome, which affirms what we have known for some time: Norfolk Southern alone is responsible for the derailment and resulting damage in East Palestine," the company said in a statement.

Norfolk Southern called the verdict disappointing but said it won't affect the railroad's commitments to everyone affected by the derailment.

"For more than two years, Norfolk Southern has paid the costs related to the derailment while acknowledging and acting on our own responsibility for the accident. Our belief has always been that other companies, like GATX, who share in that responsibility should also be held to account," the railroad said in a statement.

After the train derailed in East Palestine, an assortment of chemicals spilled and caught fire. Then three days later, officials blew open five tank cars filled with vinyl chloride because they feared those cars might explode, generating a massive black plume of smoke that spread over the area and forcing evacuations.

Norfolk Southern lost a similar lawsuit last year when it tried to force GATX and OxyVinyls, which made the vinyl chloride, to help pay for the environmental cleanup after the derailment that has cost the Atlantabased railroad more than $1

billion. It made similar arguments in this trial. These lawsuits have no effect on how much money residents or the village of East Palestine will receive from their settlements with the railroad. This cases only affect which company writes the check.

Last week, OxyVinyls agreed to a settlement with Norfolk Southern in this lawsuit over the classaction settlement after the railroad's lawyers raised questions about the inconsistent information the chemical company provided about whether it was necessary to perform the vent-and-burn operation and release the vinyl chloride. The details of that settlement weren't released.

The National Transportation Safety Board confirmed in its investigation that the vent-and-burn operation was unnecessary because the tank cars were starting to cool off and the railroad failed to listen to the advice from OxyVinyls' experts or share their opinions with the officials who made the decision.

The railroad said GATX should have done more to take care of its railcar, particularly after it was surrounded by floodwaters, which could have damaged its bearings.

But GATX said it complied with all the relevant regulations for taking care of its railcars. The company said that even if the car was damaged six years earlier by standing parked in the middle of floodwaters from Hurricane Harvey, the railroad should have spotted the problem and repaired it, sending GATX the bill for the repairs.

The National Transportation Safety Board said the crash was caused by the failure of an overheating bearing on GATX's railcar. The railroad's sensors spotted the bearing starting to heat up in the miles before the derailment, but it didn't reach a critical temperature and trigger an alarm until just before the derailment. That left the crew little time to stop the train.

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Bessent says IMF and World Bank need reform and there’s an ‘opportunity for a big deal’ with China

By FATIMA HUSSEIN and CHRIS MEGERIAN Associated Press

TREASURY Secretary Scott Bessent leveled harsh criticism at the operations of the World Bank and the International Monetary Fund on Wednesday even as he tried to reassure nervous investors that the United States would maintain its global leadership role.

"America first does not mean America alone," he said in a speech to the Institute of International Finance, where he also promised support for the multilateral banks' core missions. "To the contrary, it is a call for deeper collaboration and mutual respect among trade partners."

Although Bessent said the IMF and the World Bank are "falling short," he did not call for the U.S. to withdraw from the institutions, as some conservatives had advocated in a Project 2025 proposal created by the Heritage Foundation.

He said the institutions "serve critical roles in the international system. And the Trump administration is eager to work with them — so long as they can stay true to their missions."

It was the latest example of how Bessent, a former hedge fund manager who keeps a close eye on the financial markets, has tried

to calm the economic turmoil as President Donald Trump tries to rewire international trade through aggressive tariffs. But his efforts to provide clarity have repeatedly bumped up against Trump, who has contradicted him on policy changes or suggested that more tariffs are coming in ways that have amplified a sense of uncertainty.

That same drama played out later on Wednesday as Trump suggested he would choose tariff rates if no deals were reached.

"By the way, if we don't have a deal with a company or a country, we're going to set the tariff," Trump said from the Oval Office. "That will happen, I would say, over the next couple of weeks ... over the next two, three weeks we'll be setting the number."

Trump's launch and then delay of new tariffs has created uncertainty about his policy goals, with the U.S. president indicating that he both wants new agreements and tariff revenues in order to reduce income taxes.

"That money is going to be used to reduce taxes," Trump said. "We're going to get big, big tax breaks."

The U.S. president also suggested that he might increase import taxes on autos from Canada. Trump has a 25% tariff on autos, although there are some exemptions related to

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NOTICE

Road, Freeport Grand Bahama, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

the U.S.-Mexico-Canada Agreement, and automakers are seeking other policy changes to minimize the tariff burden. Trump has separate 25% tariffs on Canadian goods ostensibly to address drug smuggling into the U.S.

"I really don't want cars from Canada," Trump said, "So when I put tariffs on Canada, they're paying 25%, but that could go up in terms of cars. When we put tariffs on, all we're doing is we're saying, 'We don't want your cars, in all due respect.'"

Trump cautioned that he's not currently considering additional auto tariffs, but he said there could be an increase.

After Bessent's remarks, reporters asked him about a Wall Street Journal article that said the huge U.S. tariffs that the Republican president has levied on China could be cut in half, citing unidentified people familiar with the matter.

Bessent said: "I'd be surprised if that discussion is happening." However, he said he expects "there'd have to be a de-escalation" from Washington and Beijing's trade confrontation.

Trump had said on Tuesday that the 145% tariffs on China could "come down substantially." And then on Wednesday, he told reporters that "everybody wants to be a part of what we're doing" and "everyone's going to be happy."

Later in the day, White House press secretary Karoline Leavitt said on Fox News Channel's "America Reports" that "there will be no unilateral reduction in tariffs against China."

"The president has made it clear China needs to make a deal with the United States of America," she said. "And we are optimistic that will happen."

Still, Bessent's speech in Washington represented a broadside against the IMF and the World Bank, which provide loans and other financial support around the world.

He said the Trump administration "will leverage U.S. leadership and influence at these institutions and push them to accomplish their important mandates."

Some of Bessent's criticisms echoed the Trump administration's efforts to root out progressive ideology from federal institutions. Bessent said the IMF "has suffered from mission creep" and "devotes disproportionate time and resources to work on climate change, gender and social issues."

He said there were similar problems at the World Bank, which he said "should no longer expect blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform."

Despite the criticism, Bessent's support for the IMF and World Bank came as a relief for development bankers and analysts, who partly expected an announcement of a U.S. withdrawal from the organizations.

Last October, Jay Shambaugh, former undersecretary for international affairs, alluded to a Project 2025 proposal for the U.S. to pull out of the IMF and World Bank if Trump won the 2024 election. Shambaugh said at the time that without U.S. leadership, "We would have less influence and we would weaken these institutions. We cannot afford that."

Bessent instead, conveyed a message of deepening U.S. involvement with the institutions. But one of the problems, Bessent said, is that China is still treated like a developing country, which gives it more favorable treatment from global institutions. With China as the secondlargest economy in the world, he said, "It's an adult economy."

Despite growing friction between Beijing and Washington, Bessent said, "There is an opportunity for a big deal here."

NOTICE

NOTICE is hereby given that JOHN FITNESS   of #19 Fairfeld, Balao Loop, Freeport, Grand Bahama, applying to the Minister responsible for Nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ODRIK ELUSNORD of P.O. Box General Delivery, North Palmetto Point, Eleuthera, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 17th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

TREASURY Secretary Scott Bessent speaks, Wednesday, April 23, 2025, during the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington.

Photo:Jacquelyn Martin/AP

IRS TURMOIL: LEADERSHIP

CHURN, WORKER EXODUS AND THREATS TO GROUPS’ TAXEXEMPT STATUS ROIL AGENCY

By FATIMA HUSSEIN Associated Press

THE height of tax season was the height of turmoil at the IRS.

The agency shuffled through three acting directors over the course of a week. It's preparing to lose tens of thousands of workers to layoffs and voluntary retirements. And President Donald Trump is weighing in on which nonprofits should lose their tax-exempt status, an incursion into the agency's typically apolitical stance that threatens to further erode trust in federal institutions and weaponize enforcement efforts.

Just three months into Trump's second term, the government's fly-underthe-radar tax collector has become the latest platform for the Republican administration's vision to cut and control the federal bureaucracy. Tax policy experts fear that taxpayer services and collection efforts will face prolonged delays as a result of the rapid changes.

The quick turnover in leadership and other changes are likely to dampen employee morale at the IRS and hurt the agency's ability to serve taxpayers in a timely manner, says Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center.

"Leadership sets the tone, particularly in this environment," she said.

Already, she notes, the agency has lost decades of institutional knowledge from nonpartisan career civil servants who have left over policy disagreements and layoffs.

Chaos embroils agency amid leadership turnover

The upheaval unfolded as Americans dutifully filed their taxes ahead of the April 15 deadline and as a legion of IRS employees undertook work to process returns and dole out refunds. The latest filing season data shows the agency accepted more than 117 million returns this tax season and issued $228.7 billion in refunds.

"We're committed to improving the efficiency of the Internal Revenue Service," said the agency's newest acting commissioner, Michael Faulkender. "For the last 35 years, we've been five years away from the IRS being modernized. Under the direct leadership of Treasury, the modernization will be done in two years at a fraction of the cost."

Meanwhile, the IRS, like other federal agencies, is hemorrhaging employees over cuts spearheaded by the Department of Government Efficiency, all while the agency churns through acting leaders as it awaits the installation of a permanent leader.

Douglas O'Donnell, the Trump administration's first acting IRS commissioner, announced his retirement in February as furor spread over DOGE gaining access to IRS taxpayer data. Melanie Krause, the second acting commissioner, resigned early this month over a deal between the IRS and the Department of Homeland Security to share immigrants' tax data with Immigration and Customs Enforcement.

Gary Shapley, an IRS whistleblower who testified publicly about investigations into Hunter Biden's taxes, was acting commissioner for a matter of days before being replaced by Faulkender, who was elevated just last week. The New York Times reported that Treasury Secretary Scott Bessent had complained to Trump that Shapley had been installed without his knowledge and at the behest of Trump adviser Elon Musk.

Trump's nominee for IRS commissioner, former U.S. Rep. Billy Long of Missouri, is still waiting for a confirmation hearing but faces controversies of his own. Most recently, Senate Democrats have called for a criminal investigation into Long's connections to alleged tax credit loopholes. The lawmakers allege that firms connected to Long duped investors into spending millions of dollars to purchase fake tax credits.

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000

Ananda Venture Fund Ltd. (IN VOLUNTARY LIQUIDATION)

NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, Ananda Venture Fund Ltd. is in dissolution.

The dissolution of the said Company commenced on April 10, 2025 when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.

The Sole Liquidator of the said Company is L. Michael Dean of Equity Trust House, Caves Village, West Bay Street, P.O. Box N-10697, Nassau, Bahamas.

L. Michael Dean Sole Liquidator

Long did not respond to an Associated Press request for comment.

Punishing enemies and rewarding friends

Among other concerns at the agency are fears that Trump will weaponize the IRS against his enemies — and reward his friends.

Some of the Democratic Party's core political institutions, including fundraising platform ActBlue and the protest group Indivisible, are preparing for the possibility that the federal government may soon launch criminal investigations against them.

Trump said last week at the White House that the administration is looking at the tax-exempt status of Harvard University, which has defied the government's attempts to limit activism on campus, and environmental groups. He also mentioned the ethics watchdog organization

Citizens for Responsibility and Ethics in Washington.

"It's supposed to be a charitable organization," Trump said of CREW. "The only charity they had is going after Donald Trump. So we're looking at that. We're looking at a lot of things."

Jonathan S. Masur, an administrative law professor at the University of Chicago Law School, said it's unlawful for the president to unilaterally take away organizations' taxexempt status.

"It's illegal for starters. The Supreme Court has established that that step is not allowed," he

said, adding that he anticipates that the court system will "very quickly block" any such move from the president.

The Trump administration is also watching out for allies of the president.

Treasury official David Eisner sent an email in March to a top IRS official regarding Mike Lindell, the founder of MyPillow and one of the chief proponents of the lie that the 2020 election was stolen from Trump.

"The 'My Pillow guy' and a high-profile friend of the President recently received an audit letter, from what I understand, his second in two years," Eisner wrote in the email, which was viewed by the AP. The president "is concerned that he may have been inappropriately targeted," Eisner wrote. A Treasury spokesperson in an emailed statement said Eisner is a "dedicated public servant" who "acted appropriately with the expectation that this would be sent to the Inspector General."

Macron in Madagascar for the first state visit by a French leader to the former colony in 20 years

By SARAH TETAUD Associated Press

FRENCH President Emmanuel Macron started a two-day visit to the Indian Ocean island of Madagascar on Wednesday and spoke of the need for his country to find new markets and boost economic cooperation in the region.

Macron's trip is the first state visit by a French leader to the former colony off the east coast of Africa since President Jacques Chirac 's in 2005.

Macron met with Madagascar President Andry Rajoelina in the capital, Antananarivo, and they signed several agreements and memoranda of understanding, including in energy, agriculture and education.

The trip delved into disputes between the nations stemming from the colonial era, including Madagascar's claims over a group of small islands that are French territory, and its demands that France return the remains of a local king who was

killed by French colonial forces in the late 1800s.

Macron also announced funding from the French Development Agency and a loan for the construction of a hydroelectric dam in Volobe, in eastern Madagascar, which has been planned for nearly a decade.

Macron is due to attend a summit Thursday of the Indian Ocean Commission, a bloc comprising Madagascar, Mauritius, Comoros, Seychelles and the French territory of Reunion.

"Sharing relevant information with nonpartisan Inspectors General is designed to be an effective and confidential way to help ensure all Americans are treated fairly," they added.

China, India and the European Union are among a group of countries and international bodies that have observer status at the commission.

"We need to conquer, at least, the market of the (Indian Ocean Commission)," Macron said. "And then, more widely, East Africa and the Indian Ocean."

On some of their disagreements, Rajoelina said there would be a new round of meetings on June 30 over the fate of the Scattered Islands, five small islands around Madagascar that fall under France's overseas territories but are claimed by Madagascar.

THE INTERNAL Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. Photo:Jon Elswick/AP

Worries about flying seem to be taking off. Here's how to cope with in-flight anxiety

By MIKE STOBBE AP Medical Writer

ADELYNN Campbell's last plane trip ended with a panic attack that she got through largely with the help of a kind flight attendant.

That was last year — before 67 people died in January when an American Airlines jet collided with a helicopter over Washington, D.C., in the deadliest U.S. air disaster in almost a quarter century.

Now, Campbell is even more hesitant to book a flight.

"It's definitely spiked my concern about getting on a plane and it's making the whole situation a little more stressful than it used to be," said Campbell, 30, who manages a coffee shop in San Diego.

Being at least a little nervous about flying is understandable. As Mel Brooks once said: "If God wanted us to fly, He would have given us tickets." But for some people it causes deep anxiety that could require professional help.

Here's a look at air travel anxiety and ways to cope with it.

More people seem to be nervous about flying

The evidence is anecdotal, but psychologists and flight attendants say they've seen and heard increased worries — and not only in people who already had anxieties about flying.

"Even people who didn't have a fear of flying are talking about it, given recent events," said Jennifer Dragonette, a California-based psychologist who treats people with air travel anxieties.

U.S. air travel was down in March and early April compared with last year, according to TSA statistics. Airlines have attributed

the decline to economic uncertainty, a decline in government and corporate travel and — yes — concern about recent aviation incidents.

FAA officials recently acknowledged they weren't doing enough to ensure air safety. Recent polling by the Associated Press-NORC Center for Public Affairs Research shows that fewer Americans report feeling safe about flying this year.

Flight attendants who work planes out of the Washington, D.C., airport were particularly rattled by the January collision, said Sara Nelson, president of the Association of Flight Attendants union. Some asked for time off to process their emotions, and at least one flight attendant left the job, she said.

What is fear of flying?

Fear of flying — sometimes called aerophobia — goes beyond just being nervous about a flight. It is an intense form of anxiety that centers on certain aspects of air travel. Many aerophobes get most rattled during take-off and landing, or when they think about

are experiencing big life changes and new responsibilities — like getting married or becoming a parent — and they start to think that "everything counts," said David Carbonell, a Chicago-based psychologist who authored a workbook to help people cope with flying fears. A bad flight with heavy turbulence or some other

"It's definitely spiked my concern about getting on a plane and it's making the whole situation a little more stressful than it used to be."

Adelynn Campbell

being locked in a plane. Some research has suggested it affects about 25 million U.S. adults. Psychologists say it often surfaces in adulthood, developing in people who didn't mind flying as kids but grew more rattled as they aged.

In many cases, it starts when people are in their 20s or 30s, at a time they

problem may trigger an anxiety that persists, he said.

Campbell, who has other forms of anxiety, developed a fear of flying a few years ago. She is transgender, and said travel can be stressful because of concerns about how she'll be treated by airport security or in other interactions.

Aerophobia can be complicated, Carbonell said. For many people, it's not so much a fear of crashing as it is claustrophobic feelings of being in an enclosed cabin and not having control.

Campbell said that's what she experiences: "feeling trapped and unable to breathe."

Nelson said flight attendants regularly deal with suffering passengers: "We've had people have panic attacks, and we've had to give them oxygen. It can be quite intense."

How to cope with flying anxiety

Statistics have long shown that airliners are probably the safest way to travel. According to the National Safety Council, the odds of dying in an airplane crash are too low to be calculated, based on 2023 statistics — making them far, far lower than of being killed in a motor vehicle crash or, for that matter, walking on a sidewalk or crossing a street. But experts say you can't really reason your way out of an anxiety disorder.

Carbonell spends little time on statistics, telling patients: "I know you already looked at them all, and they're not helping you."

For people with milder levels of aerophobia, deep breathing often works. Longer exhales help the body relax, said Dragonette, who counseled Campbell for aerophobia and other anxiety disorders at a Newport Healthcare residential facility in Temecula, California.

People suffering more extreme cases can be helped with exposure therapy. It can start by simply getting patients to become comfortable looking at photos of planes, watching videos of planes flying safely, or putting on a virtual reality headset that shows recordings of being inside a plane, Dragonette said. It's a matter of getting patients to learn to live with their feelings and better handle them.

Carbonell recommends patients take practice flights that do not involve work trips or any other

responsibilities. When they have symptoms, he recommends they keep a written inventory.

"They're keeping a simple count," he said.

"We're using counting as a proxy for acceptance."

It's OK to ask for help

Nelson, who was a longtime United Airlines flight attendant, says: "I've had situations where I'd sort of sit in the aisle and hold someone's hand."

On a Frontier Airlines flight last year from Detroit to San Diego, Campbell tried breathing and other coping skills, but they didn't halt her panic attack. The passenger next to her noticed she was increasingly anxious, and summoned a flight attendant. The flight attendant took deep breaths with Campbell and helped her get through it, and also took down Campbell's phone number and checked on her a day later.

"I was really impressed," she said.

AN AIRPLANE lifts off from Ronald Reagan Washington National Airport as the sun rises Monday, Feb. 3, 2025, in Arlington, Va.

Photo:Jose Luis Magana/AP