The Short Memory of the Masters of Disaster

Recently, we have been hearing some unreasonably rosy statements about how well the Puerto Rico Electric Power Authority used to work. That is why I looked up the Official Statements for PREPA’s last two bond offerings, dated April 12, 2012, and August 15, 2013. These documents contain a wealth of data and information about Puerto Rico’s electricity system.

Beyond LUMA: Some Lessons from the International Experience Restructuring Electricity Markets

The agreement between PREPA and LUMA Energy for the operation and management of Puerto Rico’s electric grid has been in the public spotlight recently. Many private sector organizations, as well as multiple NGOs, have pointed out the deficiencies of that agreement. Yet, canceling or terminating the agreement with LUMA will not solve Puerto Rico’s electricity problems.

Comentarios sobre la Resolución de la Cámara Número 136

Ponencia del Centro para una Nueva Economía ante la Comisión de Desarrollo Económico, Planificación, Telecomunicaciones, Alianzas Público Privadas y Energía de la Cámara de Representantes de Puerto Rico. Vista Pública Sobre la R. de la C. 136.

The PREPA-LUMA Agreement

Back in August 2020, CNE published a report that analyzed important aspects of the agreement between PREPA and LUMA Energy and offered specific recommendations to improve it. Given the recent public debate regarding this transaction, we are republishing a summary of our findings.

The Mess in Texas

Last week the people of Texas had their most recent close encounter with extreme weather. For the sixth time in twenty years, temperatures dropped to frigid lows and demand for electricity, as could be expected, shot up. But the manager of the Texas grid was singularly ill-equipped to face this foreseeable contingency.

Recomendaciones al Gobernador de Puerto Rico

Puerto Rico atraviesa por la situación más difícil que ha enfrentado en medio siglo y la complejidad de la coyuntura actual requiere que se establezcan prioridades claras de trabajo. En este memorando al gobernador identificamos cuáles deben ser las prioridades de trabajo para la nueva administración y ofrecemos recomendaciones sobre cómo atenderlas.


El 22 de junio de 2020, la AEE y la AP3 formalizaron un acuerdo para la Operación y Mantenimiento del Sistema de Transmisión y Distribución de la AEE con LUMA Energía, LLC, y LUMA Energía Servco, LLC. Recientemente, CNE publicó un informe que analiza aspectos importantes de esta transacción y ofrece recomendaciones puntuales para mejorarla.

Analysis of a Long-Term Agreement for the Operation and Management of Puerto Rico’s Transmission and Distribution System

On June 22, 2020, PREPA and the P3A entered into an agreement for the Operation and Maintenance of PREPA’s Transmission and Distribution System with LUMA Energy, LLC and LUMA Energy Servco, LLC. This policy brief analyzes important aspects of this agreement; highlights some risks associated with the performance of that agreement; identifies some serious concerns regarding the transaction; and offers some recommendations for its improvement.