Puerto Rico Energy Commission

Last updated
Puerto Rico Energy Bureau
Agency overview
FormedMay 27, 2014;9 years ago (2014-05-27)
Jurisdictionall of Puerto Rico
Annual budget$5 million USD
Agency executive
Key document
  • 57. 2014.

The Puerto Rico Energy Bureau is the government agency that regulates the energy industry in Puerto Rico. The commission was created with the primary intention of regulating the Puerto Rico Electric Power Authority (PREPA): the government-owned corporation and government monopoly that distributes and transmits all energy in Puerto Rico as well as producing 70% of all energy in Puerto Rico. [1] Before the commission came into existence, PREPA regulated both itself and the energy industry without any oversight whatsoever. [2] As renewable energy became economically feasible, Puerto Rico lagged behind in comparison to other jurisdictions. This did not bode well with several energy businesses and think tanks, such as the Association of Producers of Renewable Energy (APER) and the Center for the New Economy (CNE), which advocated for the creation of a separate independent entity capable of regulating the industry. [3] [4] [5]

Organizationally, the commission is overseen by a board of directors comprised by three commissioners appointed by the governor with the advice and consent of the Senate. The commission is also supported by an executive director who works together with the Puerto Rico Energy Affairs Administration and provides technical advice to the commissioners.

After the September 2017 hurricanes largely destroyed the island's aging, neglected and fragile power grid, and among the rush to simply rebuild as fast as possible, advocates of renewable energy and micro grids tried to turn the conversation - and infrastructure investment - to solar PV, microgrids and combined heat and power (CHP). With microgrid regulations passed by PREC in May 2018, realizing the vision for such projects is likely still twenty years away. [6]

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<span class="mw-page-title-main">E. Kyle Datta</span>

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<span class="mw-page-title-main">Puerto Rico Electric Power Authority</span> Government agency in Puerto Rico

The Puerto Rico Electric Power Authority Is an electric power company owned by the Commonwealth of Puerto Rico responsible for electricity generation, power distribution, and power transmission on the island. PREPA was the only entity authorized to conduct such business in Puerto Rico, making it a government monopoly, until on January 22, 2018, former governor of Puerto Rico, Ricardo Rossello, announced that all assets of the company will be sold in a general privatization of PREPA.

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Whitefish Energy Holdings, LLC is a small holding company based in Whitefish, Montana whose portfolio of companies installs, maintains, and repairs electrical grids. The holding company was founded in 2015 by Andy Techmanski, a former lineman. In October 2017, Whitefish, a company whose previous biggest assignment was $1.4 million, was awarded a $300 million contract to repair part of the energy infrastructure in Puerto Rico following Hurricane Maria. This contract involved Puerto Rico Electric Power Authority (PREPA). The contract was ultimately canceled after coming under public scrutiny; the company relied on subcontracted workers, who were paid several times less than the sum Whitefish Energy charged PREPA in return, which was described by The New York Times as "far above the norm even for emergency work — and almost 17 times the average salary of [such workers] in Puerto Rico."

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<span class="mw-page-title-main">LUMA Energy</span> Power company in Puerto Rico

LUMA Energy is the power company responsible for power distribution and power transmission in the Commonwealth of Puerto Rico. They are also in charge of maintaining and modernizing the power infrastructure. Previously, these duties belonged exclusively to the Puerto Rico Electric Power Authority, but as of July 20, 2018, permission was granted for PREPA assets and service duties to be sold to private companies, and on June 22, 2020, a 15-year contract with LUMA was signed, making LUMA the new operator. The takeover took place on June 1, 2021.

The Cooperativa Hidroeléctrica de la Montaña is the first electric energy cooperative in Puerto Rico. Their purpose is to generate and distribute cost effective and resilient energy from renewable sources for the communities and businesses from the Adjuntas, Jayuya, Lares, Maricao and Utuado municipalities. The efforts of the Cooperativa Hidroeléctrica de la Montaña are directed to guarantee cost effective, clean and resilient energy to the residents of these communities, using a democratic model.

References

  1. "Ya es ley la reforma energética | El Nuevo Día". Elnuevodia.com. 2014-06-25. Retrieved 2015-03-03.
  2. "International News | World News - ABC News". Abcnews.go.com. 2015-01-09. Retrieved 2015-03-03.
  3. "APER reafirma su apoyo a Reforma Energética | el Vocero de Puerto Rico". elvocero.com. Archived from the original on 28 May 2014. Retrieved 3 February 2022.
  4. "Abogan por la comisión reguladora". Archived from the original on March 25, 2014. Retrieved May 28, 2014.
  5. "CNE 15 : Version Final" (PDF). Energyclusterpr.org. Archived from the original (PDF) on 2014-05-29. Retrieved 2015-03-03.
  6. Lloréns Vélez, Eva. "With passage of Puerto Rico microgrid regulations, electricity system's transformation will take 20+ years – Caribbean Business". caribbeanbusiness.com. Retrieved 14 June 2018.