Puerto Rico-PREPA

IEEFA Research

IEEFA Puerto Rico: PREPA’s Approved Budget Faces Five Years of Shortfalls

Report Puts Average Annual Budget Deficits at $1 Billion; Privatization Will Compound Risks; Hurdles Include Debt Burden and Costly Dependence on Imported Gas and Oil for Electricity Generation

May 25, 1018 (IEEFA) — A budget review published today by the Institute for Energy Economics and Financial Analysis of the approved fiscal-recovery blueprint for the Puerto Rico Electric Power Authority (PREPA) concludes that the plan faces billions in financial risks that will hinder the transformation of the grid. The plan, certified in April by […]

IEEFA Report: Privatizing Puerto Rico’s Electric Company Would Be an Impediment to Modernization  

Plan Would Hurt Ratepayers and Undermine a U.S. Commonwealth’s Entire Economy

Link to Spanish-language press release April 13, 2018 (IEEFA)— The Legislative Assembly of Puerto Rico would be acting in the public’s best interest by blocking a proposed privatization of the Puerto Rico Electric Power Authority, a new report by the Institute for Energy Economics and Financial Analysis concludes. The report — “Privatization Bill Will Not […]

April 13, 2018 Read More →

IEEFA Report: Puerto Rico Can Get 40% of Its Electricity From Renewables by 2028

Transition Will Require Modernization of Generation, Transmission, and Distribution as Well as Strong Regulatory Oversight

March 1, 2018 (IEEFA) — The Institute for Energy Economics and Financial Analysis published a report today describing how Puerto Rico can get 40 percent of its electricity from renewable resources by 2028. The report, published with the Puerto Rico Institute of Competitiveness and Sustainable Economy (ICSE-PR), sees the U.S. commonwealth relying on renewables for 50 percent […]

IEEFA Update: Puerto Rico Is at an Urgent Energy-Policy Crossroads Now

Progress Requires Debt Elimination, Greater Reliance on Microgrids and Renewable Energy, Appointment of an Independent PREPA Administrator

OCT. 24, 2017 (IEEFA) — The Institute for Energy Economics and Financial Analysis (IEEFA) today posted a webinar and data presentation calling for responsible electricity-grid modernization in Puerto Rico and emphasizing the importance of establishing appropriate policy now. The presentation, (download the slide show here) by IEEFA energy consultants Cathy Kunkel and Anna Sommers, follows […]

October 24, 2017 Read More →

IEEFA Puerto Rico: The Aguirre Offshore Gas Port Is Unbankable

PREPA Has No Viable Plan to Finance a $380 Million Project, Leaving Ratepayers to Absorb the Costs

At the heart of the Puerto Rico Electric Power Authority’s flawed plan to upgrade the island’s crumbling electricity system lies a proposed $380 million facility to bring imported liquefied natural gas into the commonwealth. PREPA, as the authority is known, has been promoting the project for years, even though it would mean a perpetuation of […]

IEEFA Puerto Rico: The PREPA Restructuring Plan Before Congress Is Not Realistic and Does Not Hold All Players Accountable

IEEFA Puerto Rico: The PREPA Restructuring Plan Before Congress Is Not Realistic and Does Not Hold All Players Accountable

Bondholders and Dealmakers Are Not Stepping Up; Citizen Ratepayers and Taxpayers Are Left Holding the Bag Under Proposal Before Congress

Puerto Rico’s electricity-system imbroglio is in the public eye today in Washington, where a house subcommittee is holding a public hearing on a plan to restructure the Puerto Rico Electric Power Authority’s staggering $9.5 billion debt. We’ve written a letter to the subcommittee chairman, Rep. Doug LaMalfa, detailing how the debt restructuring plan sells Puerto Rico […]

March 22, 2017 Read More →

IEEFA Puerto Rico: How to Play Hardball With Bondholders

Lessons for PREPA on Placing Customers (and the Economy) Ahead of Creditors

How much of its more than $8 billion in debt can the essentially bankrupt Puerto Rico Electric Power Authority pay back? A federal oversight board appointed four months ago to supervise debt restructuring for the entire Puerto Rican government offered up an indication last week. The board, empaneled in October under the auspices of the […]

January 24, 2017 Read More →

IEEFA Report: Debt Restructuring Deal for Puerto Rico Power Authority Will Not Restore Agency to Financial Health

Flaws Will Result in High Electricity Rates, Burden an Already Ailing Economy, and Prevent the Development of Renewables

CLEVELAND, Aug. 4, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis published a report today warning of serious flaws in a debt restructuring deal for the Puerto Rico Electric Power Authority (PREPA). The analysis, by IEEFA’s director of finance, Tom Sanzillo, and Cathy Kunkel, an IEEFA energy analyst, concludes that the restructuring […]

August 4, 2016 Read More →

IEEFA Questions PREPA’s ‘Misguided’ Electric Plan for Puerto Rico; Notes High Risks and Costs; Sees Perpetuation of Import Addiction

Call for Energy Independence in U.S. Commonwealth

‘Extraordinarily Short Shrift to the Potential for Renewable-Energy Development and for Energy-Efficiency Improvements’ CLEVELAND, May 2, 2016 (IEEFA) — The Institute for Energy Economics and Financial Analysis has filed public comments recommending that the Puerto Rico Electric Commission reject the Puerto Rico Electric Power Authority’s plan to rebuild the island’s electricity system. The comments, which […]

May 3, 2016 Read More →
A U.S. Commonwealth Shortchanged in Its Utility Company’s Debt-Restructuring Deal

A U.S. Commonwealth Shortchanged in Its Utility Company’s Debt-Restructuring Deal

Puerto Rico Is Overlooking a Rare Opportunity to Seal More Favorable Terms and Pursue a Better Energy Policy

We’ve published a report today that shows how Puerto Rico is at risk of missing an important opportunity in its energy-development history and an important opportunity at a fair restructuring of the debt of its public power company. It’s the first independent assessment of a proposed deal between the Puerto Rico Power Authority (PREPA) and […]

and September 10, 2015 Read More →

More News and Commentary

IEEFA op-ed: Why the SEC should conduct the investigation of Puerto Rico’s debt obligations

One agency is well-positioned to do a thorough and fair review

Puerto Rico’s non-bondholding creditors — companies that have supplied the commonwealth with goods and services such as oil deliveries — have asked the court overseeing the commonwealth’s bankruptcy proceedings to let them conduct an investigation into the territory’s debt history. Clearly, a thorough and objective inquiry is necessary, but the organization most likely and best […]

June 22, 2018 Read More →

Puerto Rico moves forward with utility privatization

NBC News: Puerto Rico is officially moving to privatize and upgrade its outdated power grid exactly 9 months after it was flattened by Hurricane Maria. At a press conference on Wednesday, Governor Ricardo Rosselló signed into law the approved legislation that allows parts of the Puerto Rico Electric Power Authority—known as PREPA in English and […]

June 21, 2018 Read More →
IEEFA op-ed: Latest Puerto Rico utility privatization plan is as flawed as the original
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IEEFA op-ed: Latest Puerto Rico utility privatization plan is as flawed as the original

In its version of a bill to privatize the Puerto Rico Electric Power Authority, the Puerto Rico legislature has improved some on Governor Ricardo Rosselló’s original proposal, but lawmakers are ultimately failing the Puerto Rican people every bit as badly as Rosselló has. We’ve criticized the governor’s original privatization proposal for essentially aiming to set […]

and

IEEFA Op-Ed: Little Chance New Fiscal Recovery Plan for Puerto Rico’s Electric Company Will Succeed

A Weak Economy With Less Demand for Power Is Among the Many Risks

Customers of Puerto Rico’s bankrupt electric utility cannot afford to pay back the utility’s creditors over the next five years without jeopardizing much-needed investment in the rebuilding and resiliency of the island’s power grid. Nor can the utility continue to pay fossil fuel producers exorbitant amounts for oil, coal and gas. Those are the two […]

IEEFA Puerto Rico: PREPA’s Approved Budget Faces Five Years of Shortfalls

Report Puts Average Annual Budget Deficits at $1 Billion; Privatization Will Compound Risks; Hurdles Include Debt Burden and Costly Dependence on Imported Gas and Oil for Electricity Generation

May 25, 1018 (IEEFA) — A budget review published today by the Institute for Energy Economics and Financial Analysis of the approved fiscal-recovery blueprint for the Puerto Rico Electric Power Authority (PREPA) concludes that the plan faces billions in financial risks that will hinder the transformation of the grid. The plan, certified in April by […]

‘How Puerto Rico’s New Grid Could Go Wrong’

E&E News: The territory’s power company, the Puerto Rico Electric Power Authority (PREPA), is about to be privatized after 70 years as the island’s sole power provider. What worries Román is that the commonwealth’s government is approaching the massive undertaking in haste and with few safeguards in place, which it has done before, sometimes with […]

May 9, 2018 Read More →
IEEFA Puerto Rico: Proposed Offshore Gas-Import Project Makes Less and Less Sense

IEEFA Puerto Rico: Proposed Offshore Gas-Import Project Makes Less and Less Sense

Little Rationale for a Port Complex That Would Support the Status Quo

In shelving its review of the economic viability of a proposed natural gas import complex off the south coast of the island, the Puerto Rico Energy Commission last week took a policy step in the right direction. The Aguirre Offshore Gas Port (AOGP) would bring additional liquefied natural gas into the commonwealth for electricity generation, […]

Privatization of Puerto Rico Electricity Company Would Leave Island Vulnerable to More Outages

El Observador: A new report shows little is being done to make the island’s electrical grid reliable and sustainable. The study’s author, Cathy Kunkel, an energy analyst with the Institute for Energy Economics and Financial Analysis, said the Puerto Rico Electric Power Authority isn’t addressing its long-term problems: corruption, debt, falling demand and older power […]

April 23, 2018 Read More →

Informe IEEFA: Privatizar la Compañía Eléctrica de Puerto Rico Impedirá la Modernización

El Plan Hace Daño a Contribuyentes y Socava por Completo la Economía del Territorio de Estados Unidos

13 de abril de (IEEFA)— La Asamblea Legislativa de Puerto Rico estaría actuando en el mejor interés público bloqueando la propuesta privatización de la Autoridad de Energía Eléctrica, concluyó un reciente informe del Instituto para Economías Energéticas y Análisis Financiero (IEEFA, por sus siglas en inglés). El informe – “El proyecto de privatización no resolverá […]

April 13, 2018 Read More →

IEEFA Report: Privatizing Puerto Rico’s Electric Company Would Be an Impediment to Modernization  

Plan Would Hurt Ratepayers and Undermine a U.S. Commonwealth’s Entire Economy

Link to Spanish-language press release April 13, 2018 (IEEFA)— The Legislative Assembly of Puerto Rico would be acting in the public’s best interest by blocking a proposed privatization of the Puerto Rico Electric Power Authority, a new report by the Institute for Energy Economics and Financial Analysis concludes. The report — “Privatization Bill Will Not […]

April 13, 2018 Read More →