INSIGHT
PAGE 8 MONDAY, NOVEMBER 6, 2017
EMAIL: insight@tribunemedia.net
A9MAIN THE TRIBUNE
Tuesday, October 10, 2017, PAGE 9
THE STORIES BEHIND THE NEWS
TUESDAY, OCTOBER 10, 2017
insight@tribunemedia.net
Cable Bahamas - asolution text book Bahamas’ power is case on for how it should be done a must radical change U
by Richard Coulson p the hill and right
flooding to network plant Fourth, and most signifiseen in during the daily press, every restoration the next to produce sunshine simplyfor ignored, buried,inand back down again— hours. week ALIV announces accumulated. its fiscal year. restore services cant, was the initiation of Aand NEW to BPL sign that’s the story of Holdom and andThe best long-term soluof charitable during and after the passage cellular telephone service Mr.support In our view, at the prereplaced the old Bahamian electric power otherathletic events. local experts tion for Nassau the rest one at the com-a rare Category with the award of the counof Matthew, sent priceand Cable Bahamas during five wasted, and THE the comprehensive promptly this of theshares country will be be regarded to pany’s headquar-For the first try’s second licence on July Theserefuted accom4 hurricane. should expensive, years ofof Cable PLP analysis, claiming that emphasise Annual Report ters in February. plishments have time, personnel and equip- 1, 2016. The licence was as aa hybrid growthpower opportuGovernment. Minnis’ any required substantial financgrid-tied MW-scale system. Bahamas, theDr.country’s ment had to be brought in granted to a 48.25 percent nity. Traditional price/ new administration is now planting. would reserve can leverage our have largest non-bank company, subsidiary controlled by In have addition to theWe earnings from abroad. The direct valuations back atbe square storage batteries and growing expertise witha comshould readone, notwith onlya Cable, which soon started $135m equity contribcosts and loss of revenue, little relevance for for creatingbuta peak-load shaving to renewable energy—primarbyclean its slate shareholders plus about $2m of customer business under the name uted by Cable Bahamas pany in the early growth brand-new energy policy, assure 24-hour operation. as ily but always keeping bya crucial anyone interested “ALIV”, a logo and tradeand by Government its solar rebates, had a heavy impact phase of two solid business task he must soon A much cheaper major alert for viable wind and inaddress how a 51.75 percent shareholder, on earnings, in addition to mark that has become the one — in the if hemulti-division is to retain solar farm would be feasi- other lines, sources as Bahamas, an enterprise can thrive in ALIV has received incurring hundreds of hours best known throughout the the other in Florida - earncredibility. ble for New Providence on a over endeavour for the private our restrictive economic $100m in long-term debt of management time for country, seen everywhere USleaving dollars. After the usual 2012 Crown Land site long-term sector,ing while Gov-In the environment. With itspromcurfrom full-page ads to teefinancing givingand a solid election campaign several months. sophisticated leased by Government, ernment free to shift US our marrent year and extended capital ises fiscal for cheaper more Third, the gradual evolu- shirts and tote-bags. kets, on growth companies smaller onesstructure. for several of dependence oil towards electricity, it took byreliable six months to June 30, Initial staffing and Of course, asFamily with any tion of Summit Broadband, net income and the high-demand LNG with with zero the best availuntil the August 2013 foraPrime new while venture, 2017, report tells story the consortium of compa- plant construction allowed dividends often Islands, tiny the islandheavy able financing options. enjoy high Minister Christie make to begin initial start-up stretching over 18 to months, communities with only a costsIf new sources of long- prime nies spanning Orlando and operations market value. The a most grandiloquent official for ofplant, equipment, the crucial period scattering users would be term example borrowing cannot eight southwest Florida in November, and by is Tesla, still proannouncement outlinend of this June’s fiscal payroll and other since Cable’s founding served be stand-alone retail operbe found toonly recapitalize counties, bringing interducing a few hundred ing hisyears Government’s new of Bahamian businesses units.ating expenses have far the oil-fired indusover 20 ago. net and video services to year ALIV had earned thousandpower units and still approach. Bahamas Elec- $45,000 per month in salary with theinitial most optitry onlosing a soundmoney, basis for compared the exceeded revenues The most visible(BEC) sign – cable TV, retail and com- selected corporate cus- $13m of revenues and had Even tricity Corporation and allowances for residmistic growth ofALIV solar power, future,with perhaps, as has out-puts been extended mobile coverso that has been mercial internet service, ofwould growth is the top-line tomers and residential the vast of be split into two com- ing in this “hardship post” thereoperating at will remain a acontinusuggested, firm will loss, unable and morethrough recently,Friday— land-line communities, with total age to New Providence, figure, revenue, which Forda foreign and GM. Yet Tesla panies,total one for transmission, Monday ing demand for fossil-fueled have to be found as majorto record any net income telephones. This leapt to $282mand fromsales $165m revenues of $84m. That Grand Bahama, and the carries a market valuation distribution, to with time shavedwas offaccomboth electricity, which at present ity equity partner, buying major Family Islands with or return on investment to plished by wider channel inremain the previous 12 months. ends part of Florida is a growth comparable with the two wholly state-owned, to cover travel time to/ costsdate. the average consumer the net assets for $1.00 and choices, higher broadband area, and subscriber num- a network of service cenAs rising fro the discussed other forlater, generation, giant auto companies, New York. $0.27-0.30 KWH, future com- transferring debt transmission A per positive is thanks existing “Trio” bers have risen ever since tres and for which revenue hasprivate not yetpartners trans- speeds and to the market’s Whatever bundled her failings, pared with $0.08-0.10 in are to a special vehicle. towers covering 92 percent projected: revenues wouldinto be sought to takebut an Ms. subscription lated profitability, Hill was packages surely cor-as Summit was organised belief in the Bahama future of elecFlorida, an obvious anticipated to competincrease andThetric Grand equity stake. He as wasthe advised well inascomplaining more widespread that the without revenue driv- rect less than five years ago. of the population, with vehicles, where itive drag on our economy. Power Company handles the Tesla by accountants and Christie “significantly contribute took the lead. Government never “fibre-to-the-home” capa- Summit is still in the tran- Andros, Bimini and Exuma ing engine, noKPMG company But the oil supply used combined functions of genan American electric engi- provided to the over-all profitability the financing PS bility. Also, after years would ever show a profit. sitional build-out stage and well on the way to includo not predict by the present and contem- eration, We transmission and that neering firm, doubtless needed sion. 77,000 subscribers, of generator your Company [Cable to do its job propof negotiation, URCA With some justifiable coris not yet recording net ALIV and Summit will plated systems at distributions throughout receiving attractive consult- erly. Lengthy talks about a 22 percent Bahamas]”. The granted a substantial rate income, HEADQUARTERS the original BEC sign. of the market, porate but its with five-year convert Bahamas Clifton Bay and Old Pond letter the island, and Cable is majority ing fees.breast-beating, the $600 million “Rate Reduc- THE from the chairman Report calls 2017 “Aproved Year increase for selected grades plan projects it will soon had been signed up, and by can be converted to cheaperpointownedinto by the Canadian util- but a another Tesla, This re-structuring tion Bond” scheduled for not aware of any reliable the Annual Meetedly states thatLNG “mobile The USA General subsidized and more efficient of TV offerings. ity Emera Ltd. toto Remember: The Cable be contributing to group noticeable growth rate is be pie-in-the sky. By early this year came to noth- cost/benefit analysis; and ing (AGM) on November will be and the growth engine ofUnfortunately, home imported of a 5-KW re-gasified it hasWhile been nothSecond. the tremen- profits. Cable is the onlystandard Bahamas Group Comes in the cards. January 2014, Deputy PM ing. This would have paid schemes based on thermal power 16 management will be able source costing here.our business in The Bahano more successful than dous efforts throughout of Age.” There were four Bahamian company with ing in the future is certain, Brave Davis admitted that off outstanding debt, funded sea-water differences, or $10,800 to announce increase Ofmas forthisthe foreseeable is still notanattaincourse, will not be BPL-BEC in bringing con- bonds the ofislands, particularly main strandsfirms to thehad story: the imagination and manno private come part and Government a new 140 MW gen- wave or tidal action, are still ableto here, moreand than 85,000, well is restricted cost-future”. free. Government must sumermay billings down forward to bid for the gen- erating Grand plant Bahama, to repair First, the steady growth agement expertise to have be best fornear the ultraat Clifton Bay, too speculative for commeron the way to the year-end finally The bite thecurrent bullet andlosses by lack of banks or specialthe US level, but at recommend least andgroup that and the damage from wind and cial setconsideration, up a foreign venture. oferating Cable’scompany traditional cautious, we contributed working although izedtarget of 30-35 percent of ALIV and finance to a lesser decide how it will the Bahamian finance houses able of the split operation was being capital. Cable forpublic the owns more optinew technology could to the costs,Summit prob- ain minority stake and market. extent from provide term loans at the conversion “reconsidered”. mistic investor. change the picture runninghave had a into the low receives a dividend yield of This exceptional negative After some 16 months of reasonable rates for growth an ably Florida Fortunately, we already hundreds of millions. about 1.4Cable shareholders may percent on a liquid rate for a start-up company impact on the shareholdprocrastination, he revealed “Even with the amortized saving over the be concerned about comhave plenty of experience in Further, cannot Bahamas, con- investment . in mid-2015 that a speciality most optimistic couldconsumer not have happened ers ofwe Cable tariff. In “distributed” solar energy public petition from BTC, our tinue the slap-dash policies Short of full equity owncompany from North Carowithout thedistributed vision of where the attributable net to the facilities, that is, rooftop addition only otherfirm telecoms comof many years ignoring ership, a foreign could lina called PowerSecure growth of solar ALIV’s three initial interloss of $23m, or ($0.41) per generation on individual res- units, we still need com- maintenance expenses and finance, pany. They can make build, and operate (PS) had been retained, and power, there national wind executives farms, to in share, increased from $14m their own judgment about idences, warehouses, hotels mercial-scale scheduled replacements, an LNG import and gasificain January 2016 a definitive will remain Bahamians, giverecruiting savings from wholesale and in the previous 12 months. the services provided, and office buildings. which eventually contributed result tion system and enter into agreement was signed for PS providing them technical This doubtless Half a dozen local firms operation. but there no way they in break-downs, cuts, and a typical Power isPurchase to manage our new Baha- a continuing and managerial education. to the decline in the BISX are licensed installers of One unfortunate legacy brown outs. mas Power & Light (BPL), demand for fossilAgreement with BPL can compare the to financial these state-of-art systems. of Cable’s share price, together with the PS employment regime was of itsover Although nothing but a subsidiary of consumers see cover capital costsofand condition theallow two comGovernment could per- analysis fueled electricity, 300 people is 90 percent share sales to meet hurridebunking the con- a cost pf electricity on their a profitpanies. the old BEC. Our Governmargin. Cable is wholly form a major service by ceptBahamian and includes cane Matthew repairs, asWithout having of a 40-MW utility-scale ment then discovered to its which at present monthly bills, this figure every Bahamian-owned with full cutting the regulatory red- wind department leaders and the suspension of settled down pat, Dr. farm as impractical surprise that the minnow costs the average bearswell no asrelationship to detail disclosure. Government tape that ties these firms, andgroup executives. As can be dividends - nowcost announced economically unsustainPS had been swallowed by the true economic of Minnismay should a broad stillhave claim it owns a delaying approval time for giant US utility The South- consumer $0.27able, needing to cover 155 power, as BPL and parent hybrid-energy ready inter“majoritypolicy economic simple permits from days to of Oxford Avenue, formerly of West End, Grand Bahama, ern Company. (Strangely, 0.30 per KWH, acres at a capital cost of BEC have been continu- to announce the end of clearly months. est” inbyBTC, but be held on Thursday, November 9, 2017 at 10:00 a.m. $140 million, and only able ally run at loss with costs the year. customers’ bills are still onwillcompared with A recent progressive step management control is the letterhead of BEC, notat St. Francis Xavier Cathedral, West Street North. Officiwas taken when will the follow Bahaating will be Father Interment held by the giant American $0.08-0.10 inGlen C. Nixon. BPL.) mas Technical & Vocational in Lakeview Memorial Gardens, John F. Kennedy Drive. company, Liberty Global, PS retained a recruit- Florida, an obvious Institute (BTVI) arranged which has swallowed up ing firm to find competitive drag a joint venture with one of BTC into its Lilac Group American Pamela Hill asCalvin was predeceased by his wife: Linda Joyce Johnson, the leading firms, AlternaPhillip Wilkinson; on our economy.” BPL chief executive, whobrother: so that nothing about BTC tive Power Supply, giving arrived here in April 2016 is visible. Liberty recently its 2000 students the expercherish memories are his two children: Candace Carin Johnson and toLefta to polite but his sceptical revealed that BTC may tise to expand into this Calvin James Shad Deal, maniStephen Johnson, Andrew Johnreception as sheJohnson was notII; siblings: Mr. Christie’s have lost about 19,000 cellbusiness under the tutelage son, Samuel Johnson, Edward Neely, Linda Deal, Janis Taylor, Anishka Strachan an electric engineer but a festo of August 2013 put a phone subscribers to ALIV. of Philip Holdom, a 27-year and Charlene Knowles; Raymond E. Smith, Steven Harvey, Jowhite-collar finance special-brothers-in-law: target of 30 percent of our veteran installer of residenQuestions remain about seph Heaston, Blaise Taylor Sr. and Kermit Strachan Sr.; sisters-in-law: Rose Deal, ist. Neither PS nor Southern total demand being met the peculiar status of the tial and commercial solar Arnette Johnson, Jennifer N. Johnson, Joaquina Neely, Stephanie Smith, Judy was required to make any by “renewable energy” systems here and the US. 51.75 percent of ALIV’s Gardner-Harvey, M. Gardner and Nancy E. Heaston; nieces and nephews: equity investment Ava in our by 2030, but we are still large systemsPhylare shares held by Government Francis Deal, Romano Stephon Deal, Jaime Deal,While Simona Thomas, dilapidated power plant;Deal, far from that level. Gov- still primarily an option through its special vehilis, Nelson, Carrington Vanessa Stewart, Rodney Deshazior, Tereka instead, the cash flow wasWilkinson, ernment’s only positive for mid-market and upcle, Holding Co. For over Johnson, Shandea D’Andra Johnson, Kereka Brennan, Tavara Simon, all the other way —McKenzie, man- measure was a 2015 amend- scale budgets, the latest a year, plans have been Richard M. Thompson, Ruthjena Johnson, Andrew Johnson Jr., agement feesJohnson, paid Delano by ment to the Electricity Act, back-up technology Cara Taylor,toTara Blaise Taylor Jr., Janice Taylor, Samuel Johnson II, laid to sell off Holding Co. Government PS, Cartwright, plus a authorizing private power makes reliable power availAntonio Johnson, Samara Johnson, Tiffany Johnson, Malik Johncornucopia of salaries,Sherelle living Brown, into the investment comgenerators and allowing able for virtually every son, Elana Johnson, Kermitthem Strachan Jr., Rambo Brown, Nathaniel Rolle, Anisand traveling expenses, munity, but nothing has yet to tie into the public Bahamian household. ka O. Strachan, Wakaria Nilah Neely, Yanese Neely, Dion Knowles, Rayeven reimbursement of the Neely, been accomplished. The grid and apply any excess The cost of new and better mond Smith, Erica Smith, Cameron and Kevin Burden, Noah recruiter’s fees! Rachael McCree, Ministry of Finance is incageneration to increase the solar panels (duty-free King, Niabrief and tenure April Heaston; Asanette Morgan, Dolly Bullard, Cleora In her of totalcousins: pable of handling such a supply. In our context in Bahamas), often from Mullings, Smith, barely more Halcey than a year, Ms. Winifred Sawyer, Inamae Smith, Wandajane Smith, Nan deal; they should promptly “renewable” means primar- China, is steadily declining, Burke, GinettetoGrant, Emma Deal, Nona Smith, Elaine Pinder, Melia Smith, Paula Hill struggled explain ily “solar”. Theoretically, but represents on average retain our investment Grant, Terrance continuing powerGrant, cuts,Perry Grant, Prince Smith, James Smith, Chuckie Russell, also have substantial only about 20 percent of banks experienced at offerQ Deal, Josephwe Davis IV, Joseph Davis V, Juanita Slappy, Michelle and any Van rate Burke, reductions wind farms total costs, including cost ing corporate securities were so Ronald paltry asand to escape Mays, Darrian capacity Smith andfornumerous other relatives and in The Bahain the shallow waters off of storage battery packs YOUR FOR THE FAMILY via a private placement notice by aboard. most consumers mas and or an IPO. The Treasury or were stop-gap election New Providence’s southern and installation expenses coast, as is normal offshore affected by local inflation would receive a sorely measures. By pay the their time last of respects Friends may at Butlers’ Funeral Homes & Crematorium, Erand taxes in Europe, November but to date 8, I am needed cash injection this general election, nestMay’s and York Streets, on Wednesday 2017 from 1:00 p.m. to 4:30 p.m. WWW.FACEBOOK.COM/JOYFM1019 the agreement of about $70m from the andmanagement at the church on Thursday November 9, 2017 from 9:00 a.m. until service time. still had not been presented proceeds. to the House, and despite Brave Davis’ continual
Richard Coulson
State Recognized Funeral Service For Former Parliamentarian
Calvin James Johnson J.P., 64
CHOICE