OUR approves first drawdown of US$5 million for JPS hurricane recovery efforts
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Jamaica’s Office of Utilities Regulation (OUR) has approved an initial US$5 million from the Electricity Disaster Fund ( EDF ) to help the Jamaica Public Service Company ( JPS ) restore power after Hurricane Melissa.
The EDF, which was established in 2004 and funded through customers’ bills, will allow JPS to quickly mobilise teams and resources across the island.
According to JPS, the funds will support several recovery activities, including the engagement of more than 60 linesmen from the Eastern Caribbean and North America at significant cost. The money will also help with the strategic placement of personnel, equipment and inventory at key locations to speed up restoration.
JPS said on Tuesday that more than 70 per cent of its customers — just over 500,000 households and businesses — are without power following the passage of the Category 5 hurricane, which made landfall around midday with winds exceeding 180 miles per hour.
“Based on the initial information reaching us, the electrical network in central and western parishes in particular have been severely damaged,” said Hugh Grant, President and CEO of JPS. “Our teams have been working diligently to avoid a total shutdown. From what we’re seeing though, sections of the grid will require a rebuild.”
The OUR has said JPS must provide a detailed report on how the approved funds are used.
JPS has also committed to hiring independent assessors to accelerate the damage evaluation and claims process.
In the absence of affordable insurance coverage for transmission and distribution (T&D) assets, JPS proposed the creation of a self-insurance mechanism during its 2004 rate review — now the Electricity Disaster Fund — to cover restoration costs following natural disasters.
The fund was approved by the OUR as a prudent measure to strengthen the resilience of Jamaica’s electricity network.
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