Prepa

Puerto Rico Gov. Pedro Pierluisi created a Steering Committee to inspect the Public-Private Partnership (P3) contract awarded to LUMA Energy to manage energy transmission and distribution.

Executive Order 2021-012 establishes the need to create a Steering Committee to ensure:

- That the implementation of the contract between the Public-Private Partnership Authority (P3A), the Puerto Rico Electric Power Authority (PREPA) and LUMA does not represent a rate hike for consumers;

- That the contract is not used as a foundation to lay off regular PREPA workers and for the latter to retain their benefits;

- That the necessary contributions be made to PREPA's Employee Retirement System for employees who transfer to LUMA and decide to continue contributing under that System;

- That there are measures that avoid conflicts of interest when granting contracts;

- That there are clear and specific metrics of compliance and performance, and that these are complied with.

"These were the concerns I had publicly raised regarding the LUMA Energy contract. It is important that all these points are addressed, and if some of them are not met, the necessary recommendations are made to amend it if necessary. I am in favor of the energy transformation and for Puerto Rico to have a resilient and reliable electrical system. At the same time, we have to safeguard the labor rights of our public servants and make sure that the energy service improves and its cost is fair and reasonable for everyone," Pierluisi said.

The Steering Committee will be lead by the secretary of State and will include the following public officials: the executive directors of Puerto Rico's Fiscal Agency and Financial Advisory Authority, the P3A, PREPA, and the Central Office of Recovery, Reconstruction and Resilience (COR3); and the secretaries of Housing and Labor & Human Resources.

Per the executive order, the Steering Committee will submit suggestions and comments toward ensuring the contract's execution, as well as to ensure compliance with the energy public policy outlined in Act 120-2018 and Act 17-2019.

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