AJAEE warns disputes between private operators could trigger another rate hike
By THE STAR STAFF
The Association of Retirees of the Puerto Rico Electric Power Authority (AJAEE) warned Thursday that ongoing disputes among private companies operating critical components of the island’s power system could soon result in higher electricity bills for consumers.
The organization argued that Puerto Rico is now confronting the consequences of having handed control of essential infrastructure to contractors whose business interests, they said, outweigh the island’s energy security.
During a demonstration outside the offices of the Financial Oversight and Management Board and the Puerto Rico Energy Bureau, AJAEE President Johnny Rodríguez Ortiz and Ricardo Santos Ramos, former leader of the Electrical Industry and Irrigation Workers Union, said the current natural‑gas crisis exposes the vulnerability of a system dependent on private operators and susceptible to contractual conflicts. Rodríguez Ortiz recalled that privatization was promoted as a way to end a public monopoly and introduce competition that would lower costs and improve service. Instead, he said, Puerto Rico now faces a “gas cartel” that has left the island with fewer options and greater risks.
The retirees pointed to the ongoing controversy with New Fortress Energy (NFE) as a clear example of those risks. In July 2025, NFE halted natural‑gas deliveries to the San Juan power plant amid a dispute over an alleged $12 million debt, prompting Gov. Jenniffer González Colón to accuse the company of attempting to “blackmail” the government. Rodríguez Ortiz also criticized the 2018 agreement that granted NFE exclusive access to critical infrastructure at the San Juan dock, a situation that limits the government’s ability to quickly turn to alternative suppliers. The governor herself acknowledged last year that the arrangement placed Puerto Rico at a disadvantage.
The AJAEE warned that the current standoff could have immediate financial consequences for consumers. Since Sept. 16, Units 5 and 6 at the San Juan plant have been running on diesel, a significantly more expensive fuel. The government has asked the federal court to compel NFE to activate the contract’s tolling mechanism, which would allow a third‑party supplier to deliver gas through NFE’s terminal. Santos Ramos argued that the public will ultimately bear the cost of the fuel switch, noting that generating electricity with diesel instead of natural gas inevitably increases system expenses that can later appear on customer bills.
The retirees also criticized the Puerto Rico Energy Bureau for failing to provide transparency about the economic impact of the switch to diesel and warned that rate increases could be quietly embedded in future adjustments. Rodríguez Ortiz accused regulators of “hiding increases under the rug” and imposing them without public awareness.
The AJAEE demanded public disclosure of all extraordinary costs tied to service interruptions or contractual breaches, as well as clarity on who will ultimately assume those expenses. The group called for stronger contractual protections, alternative fuel‑supply options, and safeguards to prevent private disputes from becoming consumer burdens.
The AJAEE announced it will continue its demonstrations on Wednesday, Oct. 7 at 10 a.m. in front of PREPA’s Central Office in Santurce as part of its campaign against privatization and in defense of the PREPA Employees’ Retirement System.
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