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.

The Threefold Challenge to the Puerto Rican Economy

The Puerto Rican economy is simultaneously recovering from three systemic shocks: the COVID-19 pandemic, the considerable damage inflicted by Hurricanes Irma and Maria, and the upcoming creditor’s vote on the Plan of Adjustment negotiated by the FOMB.

PROMESA: A Failed Colonial Experiment?

On June 30, 2016, President Obama signed into law the Puerto Rico Oversight and Management Economic Stability Act. As we look back and take stock of the events that have taken place since 2016, the unavoidable conclusion is that the territorial bankruptcy regime set up by that law has failed to achieve most of the goals set forth by its authors.

Taking Stock of Puerto Rico’s Reconstruction Process

It has been about three years and eight months since Hurricane Maria struck Puerto Rico on September 20, 2017. It is a good time as any, to take stock of the post-storm reconstruction and recovery process as we approach the beginning of yet another hurricane season in the Atlantic Ocean.

The Earned Income Tax Credit

The Earned Income Tax Credit (“EITC”), enacted by Congress in 1975, is a tax credit available to working families in the United States whose incomes range from well below the federal poverty threshold to roughly double the poverty line.

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.

PROMESA, Four Years Later

Four years since the enactment of PROMESA, the island of Puerto Rico is still grappling with nearly 15 years of economic contraction and a bankruptcy process that appears to have no end in sight. Making matters worse, just a year after PROMESA was signed into law, Puerto Rico was struck by not one but two devastating hurricanes in a span of 14 days.

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.