In this policy brief, we take a look at the current state of PREPA’s debt restructuring process and offer some recommendations about what a good PREPA debt restructuring transaction should (and shouldn’t) include.
El primer mes del año es buen momento para pasar revista, por lo que aprovechamos para esbozar algunas de las discusiones que seguiremos de cerca desde España que pueden arrojar luz sobre temas fundamentales para Puerto Rico durante este año que recién inicia.
The recent outages of Puerto Rico’s electric system have generated plenty of uninformed debate. That situation prompted us to go through the archives and look up the Official Statements for PREPA’s last two bond offerings, dated April 12, 2012 and August 15, 2013, respectively. These documents contain a wealth of data and information about Puerto Rico’s electricity system.
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.
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.
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.
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.
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.