The Independent Regulatory Commission (IRC) has initiated a public consultation to establish an appropriate Weighted Average Cost of Capital (WACC) for the Dominica Electricity Services Ltd. (DOMLEC). This consultation process includes the release of a document outlining the Commission’s and DOMLEC’s determinations on the WACC, inviting stakeholder comments.
A face-to-face consultation is scheduled for August 14, 2024, at the Dominica Public Service Union Building, where IRC and DOMLEC representatives will present on the topic. The WACC, representing the return needed to satisfy investors, including both debt and equity holders, will be crucial in determining shareholder compensation for investments in DOMLEC’s regulatory assets.
This consultation is part of a broader Electricity Tariff/Rate Review process. Other critical proposals to be reviewed before setting new electricity rates include DOMLEC’s five-year investment plan, revenue requirements, rate base, load research, and cost-of-service calculations. The final rate proposal will outline the new rates for the upcoming three-year tariff period.
The consultative document on DOMLEC’s WACC can be accessed on https://www.ircdominica.org/consultative/. IRC’s proposed decisions, along with the relevant consultation questions, start on page 17. Stakeholders have until August 16, 2024, to provide responses. IRC will publish its final decision on September 27, 2024.
The full schedule for this consultation period is as follows:
| Event | Proposed Dates |
|---|---|
| Publication of First Issue of Document | July 5, 2024 |
| In-Person Public Consultation | August 14, 2024 |
| Closing of Responses on First (1st) Issue | August 16, 2024 |
| Comments on First Response and Publication of Second Issue of Document | August 30, 2024 |
| Closing of Responses on Second (2nd) Issue | September 13, 2024 |
| Statement of Results and Commission’s Decision | September 27, 2024 |
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