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Puerto Rico update: CAMBIO and IEEFA gain unprecedented access to PREPA’s documents and electrical system data

October 17, 2019

San Juan mapOctober 17, 2019 (San Juan, Puerto Rico) – The Puerto Rico Electric Power Authority (PREPA) agreed yesterday to provide CAMBIO and the Institute for Energy Economics and Financial Analysis (IEEFA) complete access to its electrical system data. The organizations had requested the information in order to carry out a modeling study based on distributed renewable energy sources. Because the data contains confidential information on critical infrastructure with federal-level protections, the parties will enter into a non-disclosure agreement (NDA) that will not restrict publication of results of the study to be conducted.

This agreement, unprecedented in Puerto Rico, was achieved by way of Judge Anthony Cuevas-Ramos, in the San Juan Superior Court, after a mandamus request was presented by CAMBIO and IEEFA in May this year for access to public documents related to the privatization of PREPA and the electrical system. Pursuant to the agreement reached in court, PREPA must deliver a draft NDA to the organizations by October 25, 2019. PREPA also delivered yesterday additional documents related to generation projects and will have 30 days to complete delivery of additional agreed-upon documentation.

“It is a great victory for citizens who claim their right to information. It is the first time that PREPA has agreed to share data about the electrical system with an organization outside the corporation. With this data we can do modeling to demonstrate that a transformation of the electrical system is possible prioritizing distributed renewable energy and reducing dependence on fossil fuels, as presented in the Queremos Sol (We Want Sun) proposal,” said Ingrid M. Vila Biaggi, president and cofounder of CAMBIO.

Part of the documentation that was received yesterday included:  minutes of meetings of the evaluation committee for the conversion to natural gas of San Juan 5 and 6 power plants, written communications with federal agencies and permits processed to date. PREPA will also produce certifications indicating that a valuation of assets was never conducted and that a cost benefit analysis on privatizing PREPA was never performed. “We hope to soon conclude this case, with the signing of the NDA, PREPA’s production of documents we have identified and certifications if they simply do not exist. It is quite worrisome to learn that PREPA is proceeding with privatization without basic information and without an analysis of the impact of such decisions,” added Vila Biaggi.

“This is a great step forward for gaining a clearer understanding of what has and has not been done in the PREPA privatization process. It is very concerning, to say the least, that there appears to be little to no cost:benefit analysis undertaken to date ,” said Tom Sanzillo, director of finance at IEEFA.

There are also pending documents on the San Juan 5 and 6 conversion project that New Fortress Energy, who was awarded the project, alleges are business secrets.  The judge is providing New Fortress Energy time to present their arguments before the court, but the organizations argued that these are public documents.

Negotiations extended through Wednesday morning and afternoon. Judge Cuevas Ramos mediated the meetings at the request of CAMBIO’s attorneys, Judith Berkan and Mary Jo Méndez. PREPA director José Ortiz was contacted to validate the agreement to provide access to electrical system data.

Four PREPA officials had been summoned by the judge to explain why the corporation refused to hand over to CAMBIO and IEEFA the requested public documents on the privatization process and data about the Island’s electrical system. They participated in the negotiation meetings yesterday, but they did not need to testify.

CAMBIO and IEEFA presented a mandamus request in the San Juan Superior Court in May to demand the delivery of PREPA public information, after several direct requests were made to the utility without receiving a reply. During the first hearing on May 24, it was agreed that PREPA would deliver the relevant documents by June 7.

During ensuing judicial hearings, PREPA refused to produce the requested information based on claims of confidentiality. Of the documents claimed by CAMBIO and IEEFA, related to the privatization process and data of the electrical system, PREPA made an initial delivery on June 7, and additional partial deliveries on June 14, June 17 and August 15. There were other recent meetings with PREPA, but it was not until yesterday that the utility agreed to deliver all of the requested public documents and to an NDA to provide access to the electrical system data.

Tom Sanzillo is IEEFA’s director of finance.

Ingrid M. Vila Biaggi is a civil engineer and founder of CAMBIO P.R.

Media contacts

Nelson Gabriel Berrios ([email protected]), (787) 502-5264

Vivienne Heston ([email protected]), +1 (914) 439-8921

About CAMBIO

CAMBIO promotes sustainable and responsible actions for Puerto Rico through awareness, education, capacity development, community support, as well as research, design and implementation of policies and strategies.

About IEEFA

The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analysis on financial and economic issues related to energy and the environment. The mission of the Institute is to accelerate the transition to a diverse, sustainable and profitable energy economy.

Tom Sanzillo

Tom Sanzillo is Director of Financial Analysis for IEEFA. He has produced influential studies on the oil, gas, petrochemical and coal sectors in the U.S. and internationally, including company and credit analyses, facility development, oil and gas reserves, stock and commodity market analysis, and public and private financial structures. He also examines such areas as community and shareholder activism, institutional investment, public subsidies and Puerto Rico’s energy economics.

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Ingrid Vila Biaggi

Ingrid M. Vila-Biaggi is Vice President of IEEFA’s Board of Directors. She is an environmental engineer, co-founder and President of CAMBIO, a non-profit organization based in Puerto Rico that designs, promotes and implements sustainable policies and practices.

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