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Electricity for Grand Cayman
April 2008

Main Agreement between CUC and the Cayman Islands Government

This is the entire agreement. It terminates the existing Caribbean Utilities Company, Ltd. (CUC) licence and lays out the details of the new licences for generation, transmission and distribution of electricity in Grand Cayman. It also provides for fair competition in the process of generation of electricity in Grand Cayman and introduces a transparent mechanism to establish and maintain equitable rates for consumers. The agreement has five attached schedules.

Schedule 1: Electricity Generation Licence

This is the non-exclusive licence the Cayman Islands Government granted CUC to generate electricity for supply to Grand Cayman from its generating facilities.

Schedule 2: Electricity Transmission and Distribution Licence

The Government of the Cayman Islands granted CUC this exclusive licence to transmit, distribute and deliver electricity. The licence came into force on 3 April 2008 and, unless revoked or suspended in accordance to law, will continue in effect for 20 years.

Schedule 3: General Regulatory Principles

(These will be posted on this site as soon as they become available.)

Schedule 4: Generation Solicitation Process

There are four documents:

    Schedule 4.1: Guidelines Regarding the Certificate of Need

  • CUC is required to prepare and file with the Electricity Regulatory Authority (ERA) a Certificate of Need to demonstrate the need for additional generating capacity in order to reliably serve demand. The Authority then begins a competitive bidding process to obtain the needed generating capacity.
  • Schedule 4.2: Form of Certificate of Need

  • This is a representative Certificate of Need form that CUC would file with the ERA. It outlines the kinds of information that CUC would need to provide. PDF attached to email.
  • Schedule 4.3: Form of Request for Statement of Qualifications (RFQ)

  • The RFQ form asks for information from prospective competitive bidders for additional generating capacity. The Statement of Qualifications (SOQ) prepared in response to this RFQ will be evaluated by the ERA to develop an approved list of qualified bidders. Only qualified bidders will receive a Request for Proposal (RFP) and be allowed to bid on the requested generating capacity.
  • Schedule 4.4: Form of Request for Proposal (RFP)

  • This RFP form solicits proposals from qualified bidders for the development and operation of a specified number of megawatts by a specified date. PDF attached to email.

Schedule 5: Press Release

This release was prepared jointly by the Cayman Islands Government and CUC.

Last Updated: 2008-04-08