April 12, 2021 Read More →

LUMA takeover stalled by unfinished business

San Juan Daily Star:

The Puerto Rico Energy Bureau’s (PREB) calendar for evaluating LUMA Energy’s proposed performance-based metrics will take it past the scheduled June 1 takeover of the Puerto Rico Electric Power Authority’s (PREPA) transmission and distribution (T&D) system, a situation that could potentially stop the management contract from going into effect.

With under 50 days left before LUMA Energy is slated to officially start managing PREPA’s T&D, the PREB, which is the island’s energy sector regulator, as of Sunday had yet to give the green light to LUMA Energy’s proposed budget for the first three years of the management contract.

The performance metrics and the budget are two of some 20 conditions that must first be met before LUMA Energy can officially be handed over the management of PREPA’s T&D, including customer service and billing. 

The Institute for Energy Economics and Financial Analysis (IEEFA) noted that LUMA Energy is not off to a good start because it now expects to be 11% over its contractual operating budget for the yearlong front-end transition process that ends June 1.

[Staff Report]

More: Conditions for LUMA Energy’s takeover of PREPA’s T&D have not yet been met

Posted in: IEEFA In the News

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