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Jamaica Public Service Company Limited Jamaica Public Service Company Limited Five Year Business Plan 2019-2024 Prepared by: Jamaica Public Service Company Limited 6 Knutsford Boulevard Kingston 5, Jamaica, W.I. 1 Abbreviations and Acronyms AATDAT - Advanced Automated Theft Detection Analytical Tool ADMS - Advanced Distribution Management System ADO - Automotive Diesel Oil AHI - Asset Health Index ALRIM - Accelerated Loss Reduction Incentive Mechanism AMI - Automated Meter Infrastructure B - Billion BBSO - Behaviour Based Safety Observation CAIDI - Customer Average Interruption Duration Index CBPM - Conditioned Based Predictive Maintenance CCGT - Combined Cycle Gas Turbine CCTV - Closed-Circuit Television CHP - Combined Heat and Power CRP - Community Renewal Programme DA - Distribution Automated DBMS - Database Management System DER - Distributed Energy Resources DERMS - Distributed Energy Resources Management System DG - Distributed Generation EAF - Equivalent Availability Factor EAM - Enterprise Asset Management EBS - Emergency Backup Site EGS - Electricity Guaranteed Standard ELS - Energy Loss Spectrum EMS - Energy Management System ESET - Energy Sector Enterprise Team 2 ESS - Energy Storage System EV - Electric Vehicle EFOR - Equivalent Forced Outage Rate FCI - Fault Circuit Indicator FLISR - Fault Location Isolation and Service Restoration GDP - Gross Domestic Product GHG - Green House Gas GOJ - Government of Jamaica GIS - Geographic Information System GS - Guaranteed Standards GT - Gas Turbine GWH - Gigawatt Hours HB - Hunts Bay HFO - Heavy Fuel Oil HGPI - Hot Gas Path Inspection HPS - High Pressure Sodium ICE - Internal Combustion Engine IFRS - International Financial Reporting Standard IPP - Independent Power Producer IRP - Integrated Resource Plan JPS/Licensee - Jamaica Public Service Company Limited KPI - Key Performance Indicators KVA - Kilo Volt Amperes KWh - Kilowatt-hours Licence - The Electricity Licence, 2016 LED - Light Emitting Diode LIC - Loss Interface Committee 3 LNG - Liquefied Natural Gas M - Million MAIFI - Momentary Average Interruption Frequency Index MED - Major Event Day/s MDMS - Meter Data Management System MSET - Ministry of Science Energy and Technology MVA - Mega Volt Amperes MW - Megawatt MWh - Megawatt-hours NEP - National Energy Policy NEPA - National Environment and Planning Agency NG - Natural Gas NTL - Non Technical Losses OEM - Original Equipment Manufacturer Office/OUR - Office of Utilities Regulation OH - Old Harbour O&M - Operating and Maintenance OMS - Outage Management System OPEX - Operating Expenses (prudently incurred) OSI - Open System Interconnection OUR Act - The Office of Utilities Regulation Act, 1995 (as amended 2000, 2015) PAYG - Pay-As-You-Go PPA - Power Purchase Agreement PPE - Property Plant and Equipment PV - Photo Voltaic RAMI - Residential Automated Meter Infrastructure RCM - Reliability Centred Maintenance 4 RE - Renewable Energy RF - Responsibility Factor ROFR - Right of First Refusal ROE - Return on Equity ROI - Return on Investment ROR - Rate of Return RT - Rate SAIDI - System Average Interruption Duration Index SAIFI - System Average Interruption Frequency Index SCADA - Supervisory Control and Data Acquisition SCC - System Control Centre SCGT - Simple Cycle Gas Turbine SHMS - Safety and Health Management System SJPC - South Jamaica Power Company SPT - Single Pole Tripping T&D - Transmission & Distribution TL - Technical Losses TOU - Time of Use UI - User Interface US$ - United States Dollar VRE - Variable Renewable Energy VVC - Voltage Var Control WTI - West Texas Intermediary 5 Content 1. Executive Summary ............................................................................................................ 12 2. Introduction ....................................................................................................................... 21 JPS’ Vision, Mission and Values ......................................................................................... 22 BUSINESS PERFORMANCE REVIEW .............................................................................................. 24 3. JPS’ Track Record ............................................................................................................... 25 Delivering Customer Value ................................................................................................ 26 Operational Performance .................................................................................................. 32 Asset Performance ............................................................................................................. 37 Financial Performance ....................................................................................................... 40 Capital Investment ............................................................................................................. 44 Operating and Maintenance Expenditure ......................................................................... 45 BUSINESS ENVIRONMENT AND CURRENT STATE ....................................................................... 47 4. Market Analysis .................................................................................................................. 48 Global Trends And Outlook For Energy ............................................................................. 48 The Jamaican Economy ...................................................................................................... 58 Jamaica’s Electricity Sector ................................................................................................ 59 JPS – The Electric Utility ..................................................................................................... 64 Global Impacts on the Local Electricity Sector and the Utility .......................................... 68 Responding to the Changing Energy Landscape (2014-18) ............................................. 69 5. Planning Assumptions for the Business Plan ..................................................................... 74 Integrated Resource Plan (IRP) .......................................................................................... 74 Macro-Economic Environment .......................................................................................... 74 Fuel Prices .......................................................................................................................... 75 Demand Forecasts ............................................................................................................. 75 Generation ......................................................................................................................... 76 Customer Service ............................................................................................................... 77 Transmission and Distribution ........................................................................................... 77 System Losses .................................................................................................................... 78 6 Technology ......................................................................................................................... 78 Financial Assumptions ....................................................................................................... 79 6. Medium-Term Strategic Priorities and Enablers ............................................................... 82 Secure, Affordable and Sustainable Energy ....................................................................... 83 7. Priority 1: Safety ................................................................................................................. 89 Objective: Improve and Maintain a Safe and Healthy Work Environment ....................... 91 Objective: Embed Zero Harm Philosophy .......................................................................... 92 Objective: Improve and Manage Regulatory Compliance ................................................. 92 Objective: Promote and Lead Environmental Stewardship .............................................. 94 Objective: Improve Security of Our People ....................................................................... 95 Objective: Improve Security of Our Equipment and Infrastructure .................................. 95 8. Priority 2: Customer Service ............................................................................................. 98 Objective: Improve the Ease of Doing Business .............................................................. 101 Objective: Customer Empowerment ‘Putting the Power in our Customers’ Hands ....... 103 Objective: Customer Retention ....................................................................................... 105 Objective: Positive Perception of the JPS Brand.............................................................. 107 Objective: Improve Generation Reliability ..................................................................... 109 Objective: Improve Transmission and Distribution Reliability ........................................ 111 Objective: Strengthen Grid Security and Stability ........................................................... 115 Objective: Improve Grid Management ............................................................................ 117 Objective: To Modernize the National Grid ..................................................................... 121 Objective: Compliance with Transmission and Distribution Design
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