Puerto Rico Electric Power Authority provides few of the public documents requested on privatization and the electrical system
June 17, 2019 (Puerto Rico) – The Puerto Rico Electric Power Authority (PREPA) did not respond fully to the request for public documents on privatization and the electrical system that it had promised the court that it would deliver by last Friday to CAMBIO and the Institute for Energy Economics and Financial Analysis (IEEFA).
“They did not adequality respond to our document request. They only provided 14 documents, many of which are documents previously made public. They have not provided studies underlying the privatization process nor cost-benefit analysis of the generation projects proposed by PREPA. The lack of transparency in all of PREPA’s processes and decisions is very worrisome,” said Ingrid M. Vila Biaggi, founder and president of CAMBIO.
In May, CAMBIO and IEEFA brought a mandamus petition in local court against PREPA to demand the production of public information, after having sought this information for months without receiving a reply. On May 24, in the courtroom of Judge Anthony Cuevas Ramos, an agreement was reached by which PREPA would deliver documents by June 7th. Although afterwards PREPA filed motions to try to walk back this commitment, their attorneys finally agreed to provide some documents by June 7th and requested until the 14th of June to deliver the rest of the documents related to privatization and PREPA’s system.
Vila Biaggi stated that, for example, PREPA provided on June 7th an Integrated Resource Plan (IRP) that it had already made public, but no documentation on specific project proposals. “They have not presented documents on all the generation projects that they are already undertaking nor a list of operational areas under consideration for privatization. Nor have they provided analysis to justify why certain projects were included in the IRP. This is a process that directly affects the citizenry because we will see it on our bills and in the quality and reliability of electric service,” she explained.
Cathy Kunkel, energy analyst at IEEFA, stated that, “PREPA only provided a list of interconnected renewable energy projects and did not provide any other documents with electrical system data. We are concerned that the privatization process does not appear to be moving Puerto Rico towards solar energy and other renewable energy options in the near future, even though these are the best energy options for the island. We are seeking electrical system data to be able to model alternatives for a renewable energy future.”
On the afternoon of Monday June 17th, PREPA presented a list of documents related to the information request that it considers confidential. These include all of the electrical system information, as well as presentations produced by PREPA consultants. In a hearing scheduled for June 25th before Judge Cuevas Ramos, CAMBIO and IEEFA will insist that PREPA has not complied with the delivery of public documents needed for the island to know whether PREPA’s decisions are in the public interest.
Kunkel commented that the reluctance of PREPA to provide studies supporting the benefits of privatization increases doubts about the process. “The external analyses that several organizations have conducted show that privatization, as well as the agreement with bondholders, will have the effect of significantly increasing electric rates,” noted the IEEFA energy analyst.
Original press release in Spanish: AEE entrega escasos documentos públicos requeridos sobre privatización y el sistema eléctrico
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.
