ENERGYWISE e-zine
4 THINGS TRENDING 7 REASONS TO LIKE NATURAL GAS Dan Theoc C.F.O. , JPS
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Questions with
LASCELLES CHIN LASCO Chairman
LET’S RE-IMAGINE ENERGY TOGETHER In 2012, JPS began a transformation journey fueled by a passion to serve our customers better. We took a hard look at ourselves and began in earnest to redefine our commitment to Jamaica’s energy landscape, to you our customers and to each other as a team. Since that time, we have worked hard to be ‘brilliant at the basics’ and have invested billions in new technologies, basic infrastructure, employee training, and asset management. We have changed many of our processes, implemented new customer service mandates and overhauled our leadership development and performance management program. Now, in 2016, we are building even further on our strong foundation of; over 90 years of service to this great country and our recent improvements to deliver the best in class, customer-centric, forward-thinking Energy Company that Jamaica needs and deserves. We invite you to take the next step on this journey with us, as JPS leads the way to an energy future that facilitates the growth of our businesses, supports the needs of our homes, and bolsters an even stronger Jamaica. We will never stop dreaming bigger, aiming higher and serving better. From drones to smart grid to new generation to mobile apps to lower energy prices - the industry that forms the foundation for economic prosperity and advancement has never looked brighter. Join us, as we Re-imagine Energy Together. Sincerely, Kelly 1
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MEET THE ENERGY GURUS
TANISHA DAVIS Manager Client Relations -
Region East (Kingston & St.
Andrew, St. Thomas, St. Mary & Portland)
552-5256
MEET TANISHA The feeling of comfort is what one gets from the calm, responsive and solution-oriented approach that Tanisha Davis gives to her customers. She is a true Kingstonian, “born under the clock,” however, an off-road trip to St. Thomas to meet her client is no challenge for this innovative young lady. Driven to implement JPS’ thrust to drive Business Development and Sales to its customers, Tanisha believes that a more customized and specialized experience is what is required. She never exempts her team and refers to them as JPS “energy gurus.” “Once our customers conceptualize it, JPS should be the first partner they call to make it happen,” she said. Tanisha comes with over ten (10) years experience from working in various industries, her customer-centered focus to problem-solving and her willingness to go above and beyond the call of duty.... and she means it. Taking a 2:00 a.m. call is not an issue for this dynamic, energy professional. She is also very excited about the new realms that JPS can go, as well as her contribution to nation building as we - Re-imagine Energy... Together. 2
CHRISTOPHER TELFER Manager Client Relations -
Region Central (St. Catherine, Clarendon, Manchester) 551-9390
MEET CHRISTOPHER FOCUSED, DRIVEN and ENTHUSIASTIC is how Christopher, newly appointed Manager, Client Relations, describes his attitude towards his new mandate. This charismatic professional has earned his footing in the customer centered industry, boasting over 12 years of business development experience. Christopher has now been placed strategically at the forefront of the energy revolution offering new, flexible solutions and opportunities while facilitating environmentally friendly resolutions. His hands-on step by step approach in encouraging customers to do personal energy audits will allow them to decrease their spend, expand their business and increase revenue. Confident in making a SIGNIFICANT contribution to the Jamaican landscape through deepening the relationships between him and you, his valued customer, Christopher adds value to his prized new home- JPS. Christopher is ready for any opportunity to explore new energy with all new and existing clients.
JULIA GORDON Manager Client Relations -
Region West (Hanover,
Trelawny, St. Elizabeth, St. Ann, St. James, Westmorland)
564-5341
MEET JULIA Chatting easily over the phone, Julia Gordon, a Hanover girl at heart, gave us a glance at that charming and disarming personality her clients love so much. Working with clients mainly in the Tourism sector, such as hoteliers, bauxite professionals, BPO’s and wholesalers, Julia provides energy efficiency solutions to her clients on a daily basis. She boasts that Western Jamaica clients are more laid back and easygoing. What customers love most about Julia, is her engaging personality and uncanny ability to get them to open up. Meaningful dialogue and listening attentively, Julia says, are the keys to unlocking the “goldmine” of information from her clients. Not only is she a great listener, but working to provide the best energy solutions is one of the favourite parts of her day. “Understanding clients’ energy efficiency needs and making them happy is always my end goal.” Julia says.
CONTENT LET’S RE-IMAGINE ENERGY TOGETHER -KELLY TOMBLIN MEET THE ENERGY GURUS JPS YOUR ENERGY PARTNER ADVERTISEMENT 4 THINGS TRENDING COVER STORY ENERGY TALK WITH LASCELLES CHIN UTILITY RATES ACROSS THE CARIBBEAN MANAGING DEMAND CHARGE JPS E-SMART JPS BREAKFAST FORUM AT TERRA NOVA 7 REASONS TO LIKE NATURAL GAS
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THINGS TRENDING
Last year saw many big changes taking place in the global energy industry, many of them caused by economic instability and geopolitical changes. There have been steep drops in oil prices, the closure of several fossil fuel plants, the renewable energy boom, and the landmark Conference of the Parties climate change agreement (COP21) signed in Paris in December. These trends have carried over into 2016 for the most part, and look likely to continue as the year progresses.
Christopher Telfer Being on the forefront of the energy revolution Christopher is well-equipped to oer new, exible solutions and opportunities while facilitating environmentally friendly resolutions
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Green and Clean According to the World Economic Forum, investments in clean energy systems hit a record high of close to $330 billion in 2015. This is nearly six times higher than in 2004. Close to one-third of this spend was in China – which traditionally drives 80% of its power from coal and crude oil. India, Chile and Mexico also have growing solar markets, while in the US, low solar panel prices, coupled with technology and a major tax credit have helped the sector to boom. (Fortune magazine.)
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Hello LNG
The market for liquefied natural gas (LNG) has steadily expanded over the past decade, from approximately 210 billion cubic meters of natural gas (bcm) in 2006, to 315 bcm in 2013. Eastern Asia is the largest importer of LNG, with Japan accounting for the lion’s share. China while not yet the largest importer, is the fastest growing. Asia’s demand for LNG is expected to double in the next 10 years. There is actually a glut on the market right now, which will keep prices low, according to oilprice.com.
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So Long, Coal As we speak of COP21 and the goal to cut global warming, the use of coal is being phased out in many developed countries around the world, like much of Europe and the US. According to Fortune magazine, the coal industry’s earnings in North America fell by 25 per cent in 2015. Even China is cleaning up its act, as mentioned earlier. The country is desperately seeking to reduce air pollution, and coal - being the ‘dirtiest’ of the fossil fuels - contributes
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Look out for Nuclear
Many countries hit the brakes on this sector following the nuclear disaster in Japan in 2011. However, there are signs that Japan, the US, and some European countries are ready to get back in the game. Nuclear technology can produce a constant, large supply of power - without the dangerous carbon emissions of fossil fuels. This can certainly help countries around the world honour the COP21 mandate of keeping global warming levels between 1.5 and two degrees Celsius.
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heavily to this problem.
Talking Energy with Lascelles Chin
Lasco started in 1994 and is a household name which offers a wide range of products both from Manufacturing and Distribution. The company didn’t start out big and experienced some challenges to ensure that it provides the public with affordable goods that are of excellent quality. We sit down with Founder, Chairman and CEO, Lascelles Chin to find out how important managing energy has been to the expansion and success of Lasco Group of Companies.
As an indigenous Jamaican company, Lasco has become a formidable player in the manufacturing industry. What would you say has been the driving force behind your continued success? Our philosophy is to provide the highest quality product, with the best taste at the most affordable rate. We believe that not only the company, the shareholders and the employees, but the Jamaican public must benefit from a company. That’s how we measure success. Everybody, from the gardener to the helper, works hard and makes their contribution and that is why we are successful Energy is no doubt a critical input to your operations. What steps does Lasco take as it utilizes this important input to stay competitive? When we started our factory we knew energy cost was high so we made sure all of our motors and equipment were as efficient as possible. The energy cost ended up being less than half of what it normally was and that certainly helped us to be competitive. So much so that we are looking at expansion and we have a capacity problem to supply Jamaica but we are going to expand so we can take advantage of export. We have to thank JPS, especially President and CEO, Kelly Tomblin, who despite giving us a very low rate, still wanted to show us ways we could lower cost and sent expertise to our company to show us what we can do. 7
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JPS takes pride in being the energy partner of Jamaican businesses, how would you describe Lasco’s partnership with JPS? It is amazing, what impressed us was that they continue showing us how to be more efficient. That shows the commitment of JPS not only for their amount of income they earn but to show Jamaican industries how they can be more efficient and that is tremendous and we look forward to continuing this partnership. In your Keynote at the groundbreaking of the factory you stated that the state-of-the-art factory will allow prices to be reduced. Has that happened? That’s exactly why iCool is such a success. We came in at a lower price, as is normal, when Lasco brings a product to the market that competitors have to drop their price. They have done so but we still have really dominated the market. It’s unbelievable that a local Jamaican company can outsell international companies in the beverage market. Lasco is seen as an innovative company and many laud the Liquid Plant as ground-breaking especially for a local manufacturer. Would you say being energy efficient allowed you to explore more innovative ideas? It certainly helped, as one of the impediments to Jamaican export was the high energy cost. More than half the value definitely makes a big difference in the cost, which allowed us to explore. Lasco is like the Miami airport it is constantly expanding and improving. Expansion has always been part of the plan at Lasco, is being energy efficient also a part of the plan? We are continuously expanding and energy plays an important part. I am looking forward to even more savings from being energy efficient. Hopefully with us being energy efficient and the future plans of JPS, the end result will have us as competitive as Trinidad who has a lot of energy resources. Are employees also encouraged to be more energy efficient? If so, what are some of the ways? Yes, from the very beginning they are encouraged to turn off lights when rooms are not in use and be mindful of the air condition. What was your favourite part of becoming more energy efficient? Learning all the different ways in which we could become more energy efficient. It was interesting learning from the engineers for example we have a 600 horsepower engine that we had to make run as efficient as possible. The learning part was most enjoyable. In one word describe how you felt when you realized the difference being energy efficient made?
Fantastic! 8
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From left: Mrs. Gloria Holden, Ambassador Glen Holden, and JPS President and CEO Kelly Tomblin listen keenly as LASCO Distributors Managing Director Peter Chin explains the new line for the Liquid Plant during the tour of the LASCO White Marl Facility for the American Friends of Jamaica on Tuesday, April 26.
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Tanisha Davis Tanisha believes a more customized and specialized experience is needed for Business Development and driving sales. She's one to answer clients’ calls at 2:00a.m. and looks forward to Re-imagining Energy Together
MANAGING DEMAND CHARGE High peak loads can result in high electricity charges!
LET YOUR ENERGY PARTNER HELP YOU TO BE MORE EFFICIENT! POWER FACTOR Power factor is a key indicator of the effectiveness of power utilization. Power factor is usually measured with a range of 0 to 1. A high power factor is desirable. The use of three-phase motorised equipment can negatively impact your power factor. Inductive loads for example, which are predominantly electric motors are the major contributors to low power factor. With the demand charge component on the bill, a poor power factor would see Rate 40 and 50 customers experiencing higher bills. A solution to improve low power factor is to implement power factor correction.
LOAD FACTOR Load distribution over time represents the load factor. High load factor means power demand is relatively constant over time. Low load factor suggests a peak operation in terms of power demand. Low load factor – indicate inefficient facility operation, i.e. with high peak load and low energy use. If the load factor is low (less than 0.30), operations rescheduling may be required i.e. a change in the sequence of machinery operation. 10
Utility Rates Across The Caribbean 1000
COMMERCIAL CUSTOMERS - TYPICAL BILLS 2000kWh/Mth(US$)
900 800 700 600 500 400 300 200 100 Caribbean Utility Company (Cayman)
St. Kitts Electricity Company Limited
Turks & Caicos Island Power Company
JAMAICA PUBLIC SERVICE COMPANY
St. Lucia Electricity Services Limited
Belize Electricity Limited
The Curacao Water & Power Company
Bahamas Electricity Corporation
Grenada Electricity Services Limited
Bermuda Electric Light Company Ltd.
St. Vincent Electricity Services
Barbados Light and Power Company Ltd.
The cost of electricity varies throughout the Caribbean region with customers in different islands paying, in some cases, very different rates for this very important service. The Caribbean Electric Utility Services Corporation (CARILEC), tracks the electricity rates throughout the CARILEC member countries. Based on their last survey carried out in 2015, these tables show the rates that are paid by commercial and industrial customers in 12 islands. 10,000
INDUSTRIAL CUSTOMERS – TYPICAL BILL 10,000 KWHS/MTH (US$)
9000 8000 7000 6000 5000 4000 3000 2000 1000
Caribbean Utility Company (Cayman)
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St. Kitts Electricity Company Limited
Turks & Caicos Island Power Company
JAMAICA PUBLIC SERVICE COMPANY
St. Lucia Electricity Services Limited
Belize Electricity Limited
The Curacao Water & Power Company
Bahamas Electricity Corporation
Grenada Electricity Services Limited
Bermuda Electric Light Company Ltd.
St. Vincent Electricity Services
Barbados Light and Power Company Ltd.
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IN ANOTHER FEW WEEKS, JPS’ BOGUE POWER PLANT WILL BE RUNNING ON NATURAL GAS. THIS IS A CRITICAL STEP TOWARDS OUR VISION 2030 WHICH WILL SEE A MORE MODERNIZED ENERGY SECTOR, WITH SUBSTANTIAL IMPROVEMENTS IN ENERGY SECURITY, RELIABILITY AND LOWER COSTS. HERE ARE 7 REASONS WE SHOULD BE EXCITED:
Fuel Diversity – Today more than 90% of electricity production in Jamaica is fuelled by imported Oil. This over-dependence on expensive Oil does not augur well for the country. It leaves us vulnerable to every spike in oil prices. If you look at any successful economy globally, you will observe that imported Oil is not typically a large component of their energy mix, usually fuelling less than 10% of their total electricity production. Diversity equals greater energy security. Integration of Renewables – Today, we have an average daily demand of 500 megawatts (MW), with approximately 70 MWs of known renewable energy (RE) generating units on the grid. There is another 80MWs under construction that will become operational in 2016, while a recent RFP, under the auspices of the OUR, will supply another 37 MWs. Furthermore, we have a myriad of smaller roof top RE solutions estimated at 20 MWs and growing. All these renewables need to be properly integrated to ensure the safe and reliable operation of the grid as JPS must be capable of giving an instantaneous response to changes in generation demand. The Bogue 120MW generation facility will play a critical role in doing just that and this process will be more challenging given the intermittent nature of renewables.
7 Reas Like N
Dan Theoc Chief Financial Offic
Cost Benefit – Natural gas is cheaper than Automotive Diesel Oil (ADO). If you look at any first world country that has low cost energy, you will see that the fuel source is key and typically includes a combination of Coal, Natural Gas, Nuclear or Hydro (and obviously scale is a very important factor). We estimate the savings from gas over the next 10 years will be in the hundreds of millions of U.S. dollars. Environmental Benefit – As a small island territory heavily dependent on tourism, we need to be focused on caring for our environment. Natural gas is a much cleaner fuel than the Oil we burn and will be a step in helping to reduce air pollution in Jamaica.
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Industrial Development – The introduction of natural gas to Jamaica will be an impetus for the development of new industry, new commercial applications and the retooling of large industries. Here’s one possible commercial application: just imagine all of the state-owned buses running on natural gas - a cheaper and cleaner fuel - resulting in lower maintenance costs for the buses and possibly a reduction in the theft of fuel. Additionally, natural gas will have a significant role to play in the bauxite and alumina industries, as they look to retool their own production facilities.
sons To Natural Gas
cer, JPS Energy Hub – Not to be confused with the logistics hub, the energy hub will bring new opportunities for natural gas to Jamaica. Jamaica will become only the 3rd country in the Caribbean to start importing natural gas, after Puerto Rico and the Dominican Republic. This is not a surprise given the large economies of scale traditionally required to make the importation of natural gas feasible. Interestingly, from our review of the market and discussions with major gas players, we can see that small scale delivery for several other Caribbean territories is seriously being contemplated and Jamaica will have a substantial role to play in helping to make the economics of those projects feasible.
Julia Gordon Julia works mostly in the tourism sector with hoteliers, BPO's and Bauxite professionals. Understanding her clients’ energy efficiency needs and providing a solution is always the end goal.
Increased Investor Confidence – We have seen substantially increased interest in Jamaica from the major gas suppliers, despite the fall in Oil prices over the last year. I attribute this to the growing confidence in Jamaica and our ability to close this complex transaction that allows for the importation of natural gas into the country will help to boost investor confidence which will help boost investor confidence.. This augurs well for the continued development of the country as we work together with the government, towards realising our 2030 Vision for the energy sector. 14
Our Corporate OďŹƒce can be reached at (876) 926-3190 between the hours of 8:00 a.m. and 5:00 p.m. from Monday to Thursday and from 8:00 a.m. – 4:30 p.m. on Fridays. Our agents are also ready and waiting to serve you in our 24-hour Customer Care Centre at 1-888-225-5577 (for Flow customers) and 1-888-935-5577 (for Digicel customers).
Jamaica Public Service Company Limited 6 Knutsford Boulevard, Kgn. 5 Email: calljps@jpsco.com Tel: 1-888-935-5577 or 1-888-225-5577 Website: www.myjpsco.com