The Opportunity of a Generation for Puerto Rico
If Puerto Rico truly wishes to straighten the course of its economy, it is imperative to design a modern industrial policy that puts us at the forefront of global economic activity.
CNE – Centro Para Una Nueva Economía – Center for a New Economy
Non-profit, economic research and policy development organization
If Puerto Rico truly wishes to straighten the course of its economy, it is imperative to design a modern industrial policy that puts us at the forefront of global economic activity.
The performance of Puerto Rico’s electric power system has been deficient for many years now. During the last seven years the government of Puerto Rico has undertaken massive efforts to transform the system. Yet during the summer of 2024, most of these efforts appear to have been derailed.
We reviewed a summary of the main findings of the PR100 Study in a prior policy brief. This time around we want to focus on a handful of issues that we believe merit further public discussion and analysis in Puerto Rico.
Congress should not make U.S. citizens in Puerto Rico wait to receive a fair portion of their daily bread until the next Farm Bill deliberations in 2028. The time for Congress to discharge its legal and moral obligations to Puerto Rico is now.
On February 7, representatives of the U.S. Department of Energy presented a summary of the findings of the PR100 Study. While the PR100 Final Report will not be released until late March, in this policy brief we highlight some of the findings of the PR100 Summary due to their importance and their potential policy implications for Puerto Rico’s electricity sector.
Now in 2023, the reconstruction and transformation of Puerto Rico’s electric power system is entering a critical stage, as several important processes—PREPA’s operational and financial restructuring; the commencement of large-scale projects to rebuild the grid; and the elaboration of a new Integrated Resource Plan—converge at a key point in time.
In this Policy Brief, we will present an analysis of the principal components of the Generation Operation and Maintenance Agreement, including the basic structure of the transaction; the compensation of the Operator; the estimated savings to be generated as a result of hiring a private operator to operate and maintain the Legacy Generation Assets; the planned decommission of most of the existing facilities that currently use fossil fuels to generate electricity in Puerto Rico; and the resulting structure of Puerto Rico’s electricity market.
It has become a bit of an end of year tradition: Congress is scrambling again to enact legislation to keep the federal government open. Unfortunately for the U.S. citizens of Puerto Rico, Congress is also scrambling to provide additional funding for the island’s Medicaid program and avoid a so-called “Medicaid cliff.”