August 3, 2018 Read More →

Puerto Rico power company’s fiscal plan resurfaces offshore gas port

Caribbean Business:

The Institute for Energy Economics and Financial Analysis (IEEFA), a clean energy think tank, on Wednesday came out against the deal because customers will endure a 10% rate hike.

“By 2063, Prepa customers will still be paying for oil burned in 2008,” IEEFA analysts wrote. “The good news for bondholders—in the short term, anyway—is that they get paid first from the rate increase through a lock-box mechanism. The first 2.6 cents of each kWh of PREPA power sold goes to them. If there’s not enough left to pay PREPA’s operational expenses.”

IEEFA added that Prepa has “already shortchanged capital needs” by $300 million this year.

The island’s fiscal board is requiring the governor to submit by Aug. 6 a budget for Prepa that is compliant with the new fiscal plan.

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