Mr. Sonji Myles

The Utility Regulation and Competition Office (URCO) confirms that it has reached an
agreement with Caribbean Utilities Company, Ltd. (CUC) and have settled the legal
proceedings initiated by CUC relating to the Certificate of Need (CON) determination
issued by the URCO in April 2025. This settlement is reflected in a Consent Order which
sets out the agreed way forward for initiation of the competitive bid process (‘the
Generation Solicitation Process”) in respect of firm generation needed in the future, as
required by CUC’s T&D Licence, and has resulted in CUC withdrawing its application for
Judicial Review.

As part of this approach, CUC has committed to submitting a revised CON, this time in
the prescribed format, by 5 September 2025, covering projected firm generation
requirements from 2027 onward. Concurrently, the Office has rescinded its 24 April 2025
CON Determination, which is effectively made redundant by the withdrawal by CUC of its
original CON.

This will now enable the Generation Solicitation Process to move forward in an
expeditious manner with the objective of securing Grand Cayman’s future firm generation
needs by way of a fair and transparent competitive bidding process, so as to obtain the
best reliability and value for money for Grand Cayman’s electricity consumer base..

This will now enable the Generation Solicitation Process to move forward in an
expeditious manner with the objective of securing Grand Cayman’s future firm generation
needs by way of a fair and transparent competitive bidding process, so as to obtain the
best reliability and value for money for Grand Cayman’s electricity consumer base..

Chairman J. Samuel Jackson

“We welcome this practical resolution,” said Sonji Myles, Interim CEO of URCO.
“While the Office stands by the principles underpinning its original determination,
we have always believed that regulatory clarity and process integrity can and
should be achieved without protracted litigation at the cost of the people. We are
grateful that CUC has agreed to focus its efforts on resubmitting the CON rather
than pursuing court action, which we both agree would not have served the public
interest.”

The initial CON submission from CUC (June 2024) included multiple generation options,
with the 90.1 MW proposal being considered by URCO to be the most suitable. The
Office’s April 2025 determination acknowledged the importance of advancing firm
generation capacity planning, so as to ensure reliability of the grid, but noted that the
format of the submission did not fully comply with the established requirements.

More importantly, both parties have reaffirmed their shared understanding that renewable
technologies which are proven to be capable of meeting firm capacity standards, such as
through effective hybridisation and battery integration, can be considered alongside
traditional generation options.

“The Board of URCO remains committed to practical, principled regulation,
said Mr. J. Samuel Jackson, Chairman of the Board. “This outcome protects
the integrity of the regulatory framework vis-à-vis a competitive bidding process for
firm power generation, while allowing for renewables to prove their viability as firm
generation, which has always been enshrined in the CUC T&D Licence since its
inception in 2008. URCO remains committed to enabling the progression of
cleaner energy generation in a way that is practical, secure, accountable and fair
to consumers, whilst maintaining the necessary reliability of the grid .”

This settlement of the Judicial Review proceedings underscores URCO’s role as a
forward-looking regulator that is both principled and pragmatic. It also reflects a mutual
interest between URCO and CUC in avoiding unnecessary delays and the significant
costs of litigation whilst ensuring that the consumer base of the Grand Cayman benefits
from reliable, well-planned, and cost-effective energy infrastructure.

This development comes at a critical time, as URCO concurrently leads other key
initiatives, including the 22.5 MW Dispatchable Solar RFP issued on 3 July 2025, with bid
submissions due by 2 October 2025.

“This resolution clears the path for us all to move forward,” said Mr. McCleary
Frederick, Executive Director of Energy. “The Office remains firmly focused on
ensuring energy security, affordability, and a responsible transition to sustainable
energy. We appreciate CUC’s engagement on this matter and look forward to
reviewing their resubmission.”

As is custom, the Office will evaluate the revised CON in accordance with the terms of
CUC’s Licence, applicable legislation and best practices and then publish a new
determination and RFP in due course.