CNE – Centro Para Una Nueva Economía – Center for a New Economy
Non-profit, economic research and policy development organization
Recent nostalgia for the old PREPA ignores the record. Its 2012 and 2013 bond documents show an insolvent utility cutting maintenance as reliability fell. We explain how the PREPA-LUMA arrangement works and what can be done.
The agreement between PREPA and LUMA Energy for the operation and management of Puerto Rico鈥檚 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鈥檚 electricity problems.
Ponencia del Centro para una Nueva Econom铆a ante la Comisi贸n de Desarrollo Econ贸mico, Planificaci贸n, Telecomunicaciones, Alianzas P煤blico Privadas y Energ铆a de la C谩mara de Representantes de Puerto Rico. Vista P煤blica 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.
Puerto Rico atraviesa por la situaci贸n m谩s dif铆cil 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 cu谩les deben ser las prioridades de trabajo para la nueva administraci贸n y ofrecemos recomendaciones sobre c贸mo atenderlas.
El 22 de junio de 2020, la AEE y la AP3 formalizaron un acuerdo para la Operaci贸n y Mantenimiento del Sistema de Transmisi贸n y Distribuci贸n de la AEE con LUMA Energ铆a, LLC, y LUMA Energ铆a Servco, LLC. Recientemente, CNE public贸 un informe que analiza aspectos importantes de esta transacci贸n y ofrece recomendaciones puntuales para mejorarla.
On June 22, 2020, PREPA and the P3A entered into an agreement for the Operation and Maintenance of PREPA鈥檚 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.
