Puerto Rico-PREPA

IEEFA Research

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 →
ESTUDIO DE IEEFA ENCUENTRA INADECUADA LA REESTRUCTURACIÓN DEL ADEUDO DE EMPRESA DE ENERGÍA PUERTORRIQUEÑA; VE OPORTUNIDADES  PERDIDAS EN ENERGÍA EÓLICA, SOLAR Y EFICIENCIA ENERGÉTICA

ESTUDIO DE IEEFA ENCUENTRA INADECUADA LA REESTRUCTURACIÓN DEL ADEUDO DE EMPRESA DE ENERGÍA PUERTORRIQUEÑA; VE OPORTUNIDADES PERDIDAS EN ENERGÍA EÓLICA, SOLAR Y EFICIENCIA ENERGÉTICA

EN ESPERA PARA DAR A CONOCER 11 A.M., JUEVES, 10 de SEPT.

SAN JUAN, Puerto Rico (10 de Sept. de 2015) — The Institute for Energy Economics y Financial Analysis dio a conocer hoy un informe concluyendo que la Autoridad de Energía Eléctrica de Puerto Rico (AEEPR) es demasiado generosa con tenedores de bonos en su propuesta reestructuración de su adeudo y corta de vista en sus […]

September 10, 2015 Read More →

More News and Commentary

Puerto Rico’s Proposed Pivot to Natural Gas Stalls

Wall Street Journal: A $380 million offshore gas project in Puerto Rico is stalling, caught up in the fallout from a $9 billion utility bankruptcy. Excelerate Energy LP gave notice last week it had canceled contracts with Puerto Rico’s electric utility to construct a floating natural gas terminal off the island’s southern coast. The cancellations […]

August 7, 2017 Read More →
IEEFA Press Release: Calling for the Appointment of an Independent Inspector General  to Take Over the Puerto Rico Electric Power Authority

IEEFA Press Release: Calling for the Appointment of an Independent Inspector General to Take Over the Puerto Rico Electric Power Authority

Letter to Puerto Rico Gov. Rosselló and PROMESA Chairman Carrión: ‘Strong Medicine’ Needed for Order and Accountability at PREPA; A Responsible and Transparent Recovery Is Possible

Aug. 3, 2017  (IEEFA.org) – The Institute for Energy Economics and Financial Analysis today sent a letter to PROMESA Chairman Jose B. Carrión III and Puerto Rico Gov. Ricardo Rosselló calling for the appointment of an inspector general to take over the management, operations, and restructuring of the Puerto Rico Electric Authority. The letter, by […]

August 4, 2017 Read More →

IEEFA Puerto Rico: Hearings on Proposed Gas Port Conclude Amid Cloud of Financial Uncertainty

Federal Oversight Board Sends PREPA to Bankruptcy Proceedings; PREPA Presents Conflicting Forecasts to Board and Energy Commission

In an eventful – and unprecedented – series of actions affecting Puerto Rico’s energy-transition debate,  the federal board overseeing the resolution of the island’s enormous debt burden last week sent the Puerto Rico Electric Power Authority into a bankruptcy-like process known as Title III.  The board’s actions came two days after the Puerto Rico Energy […]

Electric System Bankruptcy Will Benefit Consumers and Businesses in Puerto Rico

Ricardo Cortés Chico for El Nuevo Dia: The government and the Oversight Board determination to request a process of debt adjustment under the Title III of PROMESA for the Puerto Rico Electric Power Authority (PREPA) opens the possibility to achieve greater relief than initially expected in the agreement between the public corporation and the bondholders. […]

July 5, 2017 Read More →

Op-Ed: Why Puerto Rico Oversight Board Said No to an Electric Company Debt Restructuring That Went Easy on Creditors

Wall Street Journal:   In July 2016, Puerto Rico defaulted on its more than $70 billion of debt, putting at risk those liabilities as well as more than $50 billion in public pension obligations. Just before the default, Congress had enacted the Puerto Rico Oversight, Management and Economic Stability Act, or Promesa, which established the […]

June 30, 2017 Read More →

IEEFA Update: Rejection of PREPA Debt Restructuring That Favored Bondholders Is a ‘Good Day’ for Puerto Rico

'A Course That Will Help the Commonwealth Resolve Its Larger Fiscal Problems’

June 28, 2017 (IEEFA.org) — Analysts at the Institute for Energy Economics and Financial Analysis said today the decision on Monday by a federal oversight board to reject a creditor-friendly debt-restructuring deal for the Puerto Rico Power Authority (PREPA) was in the best interest of the U.S. commonwealth and its residents. The supervisors of the […]

‘All So That a Few Rich People Can Get Even Richer’

New York Times: It is unfair to tax the people and businesses of Puerto Rico so that investors can make hundreds of millions of dollars in profit. It makes no sense to restructure the debt of the company without fixing its operational problems, or at least to have a restructuring that addresses both operational and […]

June 28, 2017 Read More →
IEEFA Puerto Rico: Assume That the $380 Million Aguirre Offshore Gasport Gets Project Financing …
, and

IEEFA Puerto Rico: Assume That the $380 Million Aguirre Offshore Gasport Gets Project Financing …

Economic Risk, Environmental Risk, Public Health Risk ...

The proposed Aguirre Offshore Gasport is unlikely to qualify for financing, which—as we wrote here yesterday—means it is an unbankable project. But assume, against the odds, that the proposed $380 million Aguirre Offshore Gasport in Puerto Rico, does get project financing. What then? Cost overruns are likely, for one thing. The Puerto Rico Electric Power […]

and

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 Op-Ed: 5 Reasons Puerto Rico’s Electric Debt Deal Is a Rip-Off

IEEFA Op-Ed: 5 Reasons Puerto Rico’s Electric Debt Deal Is a Rip-Off

Still Time and Space to Keep This Ruinous Scheme From Proceeding

The new debt proposal announced by Gov. Ricardo Roselló for the Puerto Rico Electric Power Authority (PREPA) and its bondholders on April 6 will make an already untenable economic situation for the island’s residents and businesses even worse. The electric system’s $9 billion debt is only one piece of Puerto Rico’s overall debt of $72 […]

April 27, 2017 Read More →