Energy Bureau convenes hearing on six-cent energy rate hike sought by LUMA, Genera

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) has ordered LUMA Energy and Genera PR to appear at a virtual technical conference on Sept. 28 to explain the sharp increase proposed for electricity rates in the upcoming quarter. The recent directive comes as regulators seek detailed clarification on what is driving a six‑cent hike in the Fuel Cost Adjustment (FCA), Purchased Power Cost Adjustment (PPCA), and other rate components for October through December.

In the Resolution and Order, the PREB instructs both companies -- the electric power transmission and distribution operator, and the legacy power plant fleet operator, respectively --  to break down “every component, how much each component contributes to the six cents, why those costs are increasing, and any significant changes from the previous quarter,” according to the document.

The regulator also demanded answers to an extensive list of technical questions, included as Attachment A, covering fuel delivery delays, force majeure notices, transmission constraints, unplanned outages, natural gas nomination practices, and the increased reliance on diesel and heavy fuel oil during the summer months. The PREB is seeking month‑by‑month data for June through August 2026, including dispatch decisions, cost impacts, and internal analyses performed by LUMA, Genera, or the Puerto Rico Electric Power Authority (PREPA).

Among the inquiries are whether fuel suppliers curtailed deliveries, whether natural gas nominations were reduced or rejected, and how those decisions affected generation costs. Regulators also requested documentation on new fuel contracts, liquefied natural gas cargo scheduling issues, and any disputes with suppliers such as New Fortress Energy. The PREB asked for a full “bridge” explaining how each factor contributed to the proposed $0.06666 increase in the FCA.