The Bermuda Electric Light Co. Ltd. (Belco) plans on beginning construction of two new electric generating engines and a 185ft smokestack early next year, the company said in a letter to shareholders.

The engines will boost capacity by 12 percent to 158 megawatts. The company is in the process of applying for environmental approval and submitting a planning application to the expand its operation.

The company originally submitted plans for the expansion over the past year.

However the original plan was sent back because of concerns about the operations and environmental impact of the project.

Belco now says by phasing out an old engine, and reducing the running of another, the new construction will overall lead to a reduction in emissions.

Belco also informed shareholders total kilowatt hour sales in August were up 5.35 percent over the same period last year.

The company said it plans on being Year 2000 compliant by June next year.