Quanta Services Inc. announced today that LUMA Energy, a joint venture between Quanta Services (Quanta) and Canadian Utilities Limited, an ATCO Ltd. Company (ATCO), has commenced the operations and maintenance of Puerto Rico's electric power transmission and distribution (T&D) system under the Supplemental Terms Agreement following nearly a year of preparation to transition these responsibilities from the Puerto Rico Electric Power Authority (PREPA) to LUMA.
"We want to congratulate the teams at LUMA, Quanta and ATCO, and the Puerto Rico regulatory authorities, who have worked diligently to ensure the on-time transition of the operations and maintenance of Puerto Rico's more than 18,000-mile T&D system to LUMA. In LUMA, we have created a purpose-built and effective operator for the Puerto Rico T&D system and the people of Puerto Rico," said Duke Austin, Quanta's president and CEO.
"We remain steadfast in our commitment to continue to invest our time, expertise and resources to help drive efficient operations at LUMA, as it works to deliver a modern, secure, resilient and affordable electric grid, and to develop a highly trained craft-skilled workforce for the future of Puerto Rico. We look forward to working with the communities we serve," he added.
In June 2020, following a competitive process that lasted for more than a year, Quanta announced that LUMA was selected by the Puerto Rico Public-Private Partnership Authority for a 15-year Operation and Maintenance Agreement (the O&M Agreement) with PREPA. This O&M Agreement engages LUMA to operate, maintain and modernize PREPA's T&D system in Puerto Rico, with the 15-year period scheduled to commence upon PREPA's exit from Title III bankruptcy.
LUMA will not own the T&D assets and will not own or operate the power generation assets. Quanta believes that, in addition to delivering a more reliable and resilient power grid, LUMA's efforts will deliver long-term social and economic benefits to the people of Puerto Rico. Quanta and ATCO each own 50 percent of LUMA.