IEEFA update: IEEFA and Cambio P.R. take legal action to require Puerto Rico utility to release data
May 16, 2019 (IEEFA Puerto Rico) – The Institute for Energy Economics (IEEFA) and CAMBIO P.R., a Puerto Rico-based environmental nonprofit organization, filed today a “mandamus action” in the Court of First Instance in San Juan, Puerto Rico to obtain information about the electric power utility’s (PREPA’s) system and the ongoing privatization process.
“Very little information has been provided about the underlying studies or plans related to the government’s decision to privatize PREPA. We are determined to get answers to some of the pressing questions about PREPA’s structure in order to better inform the people of Puerto Rico about their future,” said Ingrid M. Vila Biaggi, a civil engineer and founder of CAMBIO P.R., part of the Queremos Sol coalition. “It is imperative that Puerto Rico move towards, not away from the transition to renewable energy.”
In April, Puerto Rico’s government signed into law targets for reaching 100 percent renewable energy by 2050.
Where are the results of cost-benefit studies related to privatization?
The IEEFA and CAMBIO legal action is aimed at filling in missing gaps in information related to the privatization of PREPA, including any cost-benefit studies that have been conducted to justify the proposed transmission and distribution concession, as well as various new power plant proposals.
“Much of the privatization process is taking place behind closed doors,” said IEEFA energy analyst Cathy Kunkel. “There are justified concerns that, under the privatization proposals being discussed, Puerto Rico will not be moving towards solar and other renewable options anytime soon.”
THE ACTION COMES AFTER NUMEROUS LETTERS TO PREPA’S MANAGEMENT REQUESTING INFORMATION WENT UNANSWERED.
Both IEEFA and CAMBIO are part of the coalition of organizations that developed the Queremos Sol proposal, an alternative vision for the Commonwealth’s electric system that would radically decentralize Puerto Rico’s current grid, with a focus on rooftop solar. To develop further modeling and actionable analysis, the coalition requires additional details about the utility’s transmission and distribution systems, information that PREPA is withholding.
In addition, a recent deal to pay off PREPA’s US$ 8 billion legacy debt from 2020 onwards, will cost island consumers over $200 annually per household, even costing residents who introduce rooftop solar with eventual obligations to pay legacy fees, according to a recent IEEFA analysis.
PREPA’S REFUSAL TO SUPPLY CRITICAL INFORMATION IS PART OF A LONG PATTERN OF MISSING TRANSPARENCY FROM UTILITY, according to Kunkel. “This is yet another example of PREPA’s opaqueness, such as the failure to publish its most recent fiscal plan, which was supposed to be released last month.”
“The people of Puerto Rico deserve to know about these fundamental questions that will have enormous impact on their economic and energy future. PREPA cannot have a monopoly on information that is vital to the future of the island,” said Vila.
Cathy Kunkel ([email protected]) is an IEEFA energy analyst.
Ingrid M. Vila Biaggi ([email protected]) is a civil engineer and founder of CAMBIO P.R.
Media contact
Vivienne Heston ([email protected]), +1 (914) 439-8921
About IEEFA
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.
About CAMBIO P.R.
CAMBIO promotes sustainable and responsible actions for Puerto Rico through awareness, education, capacity-building, and support to communities as well as research, design and implementation of policies and strategies.
