The Office of Utilities Regulation is to decide by august, if it will grant the Jamaica Public Service a tarrif adjustment that would result in a slight increase in cost to customers.

In a statement this afternoon, the OUR says it will make a decision on the JPS 2018 annual review of its rates by Thursday, August 2.

The utility regulator says JPS’ submission, which was received on May 3, includes a request for an extraordinary rate review in relation to debt refinancing.

While the time allowed for the annual review is 60 days, owing to the extraordinary component in the application, the OUR has sought and received JPS’ agreement for a 90 day review period, which will result in the issuing of the OUR’s determination on August 2.

The OUR says with respect to JPS’ extraordinary rate review application, the company is proposing to refinance over US $179 m of its existing long term debt that is based on an interest rate of 11 percent per annum, with an equivalent quantum of debt at approximately 8 percent per annum.

The JPS is also proposing a Z-factor adjustment for accelerated depreciation and separation costs, which it anticipates will result from the pending decommissioning of the old base load plants at the Old Harbour and Hunts Bay locations.

JPS proposes a 2 percent average increase in the non-fuel bill component assuming no change in current fuel prices, and if accepted, would have a total average bill impact, including fuel and IPP charges, of approximately one percent increase for customers.

The OUR says it will have to undertake its own analysis and verification to determine whether or not the actual adjustments are to be approved.