supply to businesses in the western part of Hamilton may be at risk.

In its quarterly report to shareholders, Belco president Mr. Garry Madeiros said the company's problems with securing a suitable site for a new sub-station in the area was at the heart of the problem.

The utility is currently appealing a November decision by the Development Applications Board to refuse an application to convert the old Woodbourne Guest House from tourist accommodation to an electricity substation and one dwelling unit.

Mr. Madeiros told The Royal Gazette yesterday that the matter was serious enough that the company is hoping to be able to meet with the Environment Minister personally.

He said: "Our appeal is in the form of a letter written by our architects, and we have asked for an audience with the Minister, face to face, to have a discussion on this whole issue.'' This week's shareholders' letter from Belco also expresses Mr. Madeiros' concern about the DAB's basis for refusal.

The written ruling said the property was unsuited to such a use "due to its location and the potential detrimental impact of the development on the amenity of the human and natural environments of the area.'' The Board said the development would be better located on a commercial property in the area.

The Quarterly Report said: "We are particularly concerned with the basis of the DAB's refusal, that substations should not encroach on residential areas.

"There are 31 substations throughout Bermuda, most are in residential areas.

Without these substations we could not provide electricity supply.

"A lack of available property and constraints inherent with finding a suitable building for a substation could eventually compromise the security of the City supply.'' Belco has indicated that in its proposal, there would be few changes to the way the exterior looks currently, with the exception of the replacement of windows and shutters.

The substation equipment was to be installed on the ground floor, while the upper floor was to be used as accommodation for staff and contract workers.