Puerto Rico

IEEFA Research

IEEFA: Consultants poised to make more than $1 billion from bankrupt Puerto Rico utility

IEEFA: Consultants poised to make more than $1 billion from bankrupt Puerto Rico utility

Huge consulting fees highlight systemic problems with reform of island utility

April 29, 2021 (IEEFA) ⎼ The transformation and financial restructuring of Puerto Rico’s bankrupt electric power authority have generated more than $440 million in consulting contracts during the last seven years and could cost island residents more than $1 billion before completion, according to a study released today by the Institute for Energy Economics and […]

IEEFA: Consultores listos para ganar más de $1,000 millones de la corporación de servicios públicos de Puerto Rico en bancarrota

Las enormes comisiones de consultoría ponen de relieve los problemas sistémicos con la reforma de la utilidad de la isla

29 de abril de 2021 (IEEFA) – La transformación y reestructuración financiera de la Autoridad de Energía Eléctrica de Puerto Rico en bancarrota ha generado más de $440 millones en contratos de consultoría durante los últimos siete años y podría costar a los residentes de la isla más de $1,000 millones antes de su finalización, […]

IEEFA U.S.: Testimony shines light on additional problems with Puerto Rico LUMA deal

Grid privatization contract suffers host of issues likely to result in higher prices for islanders

April 6, 2021 (IEEFA) ⎼ New research has revealed major problems in the procurement process that resulted in the selection of LUMA Energy to operate Puerto Rico’s electrical grid, according to testimony given today to a Puerto Rico House of Representatives committee. Tom Sanzillo, director of financial analysis at the Institute for Energy Economics and […]

IEEFA EE. UU.: Testimonio arroja luz sobre problemas adicionales con acuerdo de LUMA de Puerto Rico

El contrato de privatización de la red sufre una serie de problemas que probablemente resultarán en precios más altos para los isleños

6 de abril de 2021 (IEEFA) — Una nueva investigación ha revelado problemas importantes en el proceso de contratación pública que resultó en la selección de LUMA Energy para operar la red eléctrica de Puerto Rico, según testimonios entregados hoy a una comisión de la Cámara de Representantes de Puerto Rico. Tom Sanzillo, director de […]

April 6, 2021 Read More →
IEEFA: Puerto Rico can provide resiliency to 100% of homes through solar expansion

IEEFA: Puerto Rico can provide resiliency to 100% of homes through solar expansion

Investing in renewables would lower costs, reduce price-volatility and provide resiliency to Puerto Rico

March 10, 2021 (IEEFA)—Investing $9.6 billion in distributed solar panels and batteries—funds that are already available from the federal government—could transform Puerto Rico’s electrical system into a resilient grid that provides every home on the island with a clean, reliable source of energy, according to a report released today. The report by Puerto Rico organization […]

News alert: IEEFA calls on FEMA to reject funding new natural gas plants in Puerto Rico

PREPA’s 10-year infrastructure plan contradicts orders of Puerto Rico’s energy regulator

January 26, 2021 (IEEFA) – On Monday, the Puerto Rico Energy Bureau issued an order firmly rebuking the Puerto Rico Electric Power Authority (PREPA) for attempting to move forward with new projects – including a 400 megawatt (MW) natural gas plant and 330 MW of smaller natural gas peaking units. In August 2020, the Bureau had […]

IEEFA: LUMA Energy deal paves way for Puerto Rico regulators to repeat past mistakes

IEEFA: LUMA Energy deal paves way for Puerto Rico regulators to repeat past mistakes

Multiple issues in contract likely to contribute to failure of safe, reliable and resilient grid

October 12, 2020 (IEEFA) ‒ A major contract signed with the LUMA Energy consortium may prevent Puerto Rico from building a safe, reliable and resilient electrical system, according to a new report from the Institute for Energy Economics and Financial Analysis. The deal to operate the island’s grid came in the wake of a series […]

IEEFA: Acuerdo de LUMA Energy allana camino para que los reguladores de Puerto Rico repitan errores pasados

Múltiples problemas en el contrato que pueden contribuir al fracaso de una red segura, confiable y resiliente

12 de octubre de 2020 (IEEFA) – Un importante contrato firmado con el consorcio LUMA Energy puede impedir que Puerto Rico construya un sistema eléctrico seguro, confiable y resiliente,  según un nuevo informe del Instituto de Economía Energética y Análisis Financiero. El acuerdo para operar la red de la isla se produjo a raíz de […]

IEEFA update: T&D agreement for Puerto Rico power grid sets off alarm bells

IEEFA update: T&D agreement for Puerto Rico power grid sets off alarm bells

Fails to include accountability mechanisms for meeting cost, labor, and green energy goals, Sanzillo tells U.S. House Committee

August 4, 2020 (IEEFA U.S.) – In testimony submitted to the U.S. House Committee on Natural Resources, IEEFA’s director of finance Tom Sanzillo warned of significant problems with a recent agreement for LUMA Energy to take over transmission and distribution (T&D) of Puerto Rico’s electric power grid. The agreement fails to address three major challenges, […]

IEEFA Puerto Rico: Utility PREPA gave unfair advantage to NFE in awarding $1.5-billion power plant contract

IEEFA Puerto Rico: Utility PREPA gave unfair advantage to NFE in awarding $1.5-billion power plant contract

Actions circumvented rules, outside investigation urgently needed

June 10, 2020 (IEEFA) — A lucrative contract to deliver natural gas to a Puerto Rico power generation plant was awarded through a process plagued by irregularities that provided unfair advantages to a company with limited experience on the island, according to a report co-authored by Tom Sanzillo of the Institute for Energy Economics and […]

More News and Commentary

IEEFA: Puerto Rico has chance to use billions in federal aid for creation of resilient, renewable grid

IEEFA: Puerto Rico has chance to use billions in federal aid for creation of resilient, renewable grid

More than $14 billion in federal funds should be used to increase Puerto Rico renewable sources

Puerto Rico should take advantage of a unique opportunity to deploy billions of dollars of federal funding to create a resilient, decentralized electrical system based on renewable energy—an opportunity that neither the Puerto Rico Electric Power Authority (PREPA) nor private operator LUMA Energy has shown any interest in pursuing. That was the core theme of […]

July 21, 2021 Read More →

IEEFA: Puerto Rico tiene la oportunidad de usar miles de millones en ayuda federal para la creación de una red resiliente y renovable

Más de $14 mil millones en fondos federales deben ser utilizados para aumentar las fuentes renovables de Puerto Rico

Puerto Rico debe aprovechar una oportunidad única para desplegar miles de millones de dólares de fondos federales para crear un sistema eléctrico resiliente y descentralizado basado en energía renovable, una oportunidad que ni la Autoridad de Energía Eléctrica de Puerto Rico (AEE) ni el operador privado LUMA Energy han mostrado interés en perseguir. Ese fue […]

July 21, 2021 Read More →

FERC rebuffs New Fortress challenge to jurisdiction over Puerto Rico LNG plant

S&P Global Market Intelligence ($): The Federal Energy Regulatory Commission upheld its ruling that required New Fortress Energy Inc. to apply for a federal permit for an LNG import terminal that is already in operation in Puerto Rico, paving the way for a pending challenge by the developer to proceed at a federal appeals court. […]

July 16, 2021 Read More →

IEEFA: La red eléctrica de Puerto Rico sufre una serie de reveses bajo la gestión de LUMA Energy

Los cortes de energía y los retrasos en los servicios deberían sonar las alarmas para el futuro.

Más de dos semanas después de su gestión del sistema eléctrico de Puerto Rico, el contratista privado LUMA Energy no ha comenzado con buen pie.  Los frecuentes cortes de energía y los retrasos en el servicio han puesto a prueba la paciencia de una base de clientes ya sobrecargada desde que LUMA Energy tomó el […]

June 25, 2021 Read More →
IEEFA: Puerto Rico’s electric grid suffers series of setbacks under Luma Energy management

IEEFA: Puerto Rico’s electric grid suffers series of setbacks under Luma Energy management

Power outages and services delays should raise alarms for the future

More than two weeks into its management of Puerto Rico’s electrical system, private contractor LUMA Energy is not off to a good start. Frequent power outages and service delays have tested the patience of an already over-burdened customer base since LUMA Energy took control of the island’s electric system in a privatization switchover on June […]

June 21, 2021 Read More →

Puerto Rico grid privatization running into problems early and often

Miami Herald: As a flash storm poured over San Juan on June 1, leaders and members of labor unions huddled under a yellow tent in front of the Puerto Rico Electric Power Authority to denounce LUMA Energy, the new private operator of the island’s power grid. “There won’t be peace, there won’t be peace, if […]

June 18, 2021 Read More →
IEEFA: Proposed budget for Puerto Rico’s electricity system fails test of balance, compliance and transparency
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IEEFA: Proposed budget for Puerto Rico’s electricity system fails test of balance, compliance and transparency

FOMB approval highlights five years of its failure to solve budget problems

The Federal Oversight and Management Board (FOMB) and the Puerto Rico Energy Bureau (PREB) have each approved budgets for the electrical system for the fiscal year 2022.  The FOMB’s budget demonstrates its abject failure since its inception to produce a transparent budget that demonstrates progress on savings initiatives and meeting the commonwealth’s renewable energy goals.  […]

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IEEFA: Propuesta de presupuesto para el sistema eléctrico de Puerto Rico no pasa prueba de balance

La aprobación por la JSAF pone de relieve cinco años de su fracaso en resolver problemas presupuestarios

La Junta de Supervisión y Administración Financiera para Puerto Rico (JSAF) y el Negociado de Energía de Puerto Rico (NEPR) han aprobado presupuestos para el sistema eléctrico para el año fiscal 2022.  El presupuesto de la JSAF demuestra su abyecto fracaso desde su creación para producir un presupuesto transparente que demuestre el progreso en las […]

IEEFA: Puerto Rico community opts for solar-plus-storage resiliency solution

IEEFA: Puerto Rico community opts for solar-plus-storage resiliency solution

Battered by hurricanes and earthquakes, residents test bulk-purchase model for resiliency

The poor condition of Puerto Rico’s electric grid is common knowledge. After Hurricane Maria struck in 2017, many communities lost power for months. This long outage led to almost 3,000 deaths and an exodus of residents. Still recuperating from the aftermath of Maria, the southern part of the island was hit by a major earthquake […]

IEEFA: Comunidad de Puerto Rico opta por una solución de resiliencia solar con almacenamiento

Golpeados por huracanes y terremotos, los residentes prueban el modelo de compra masiva para la resiliencia

El mal estado de la red eléctrica de Puerto Rico es de conocimiento público. Después que el huracán María azotara en 2017, muchas comunidades perdieron energía durante meses. Esta larga interrupción provocó casi 3,000 muertes y un éxodo de residentes. Aun recuperándose de las secuelas de María, la parte sur de la isla fue golpeada […]