Energy Bureau gives ultimatum to LUMA Energy on budget

In a signed document, the Puerto Rico Energy Bureau said LUMA Energy exceeded its budget by $21 million without obtaining the energy regulator’s approval.

By The Star Staff

The members of the Puerto Rico Energy Bureau (PREB) issued a motion and order to LUMA Energy last week so that in 10 working days the company shows cause for which it should not be fined $25,000 per day for exceeding the budget for fiscal year 2022.

The document, signed by the PREB’s four commissioners and issued Dec. 14, highlights that the energy consortium exceeded its budget by $21 million without obtaining the Energy Bureau’s approval.

“LUMA cannot view year-end finances as available funds that it can relocate without taking proper precautions before spending them,” the PREB document reads. “The Energy Bureau expects the budget management process to be the result of careful planning and thus any amendments should be reasonably anticipated according to a prudent accounting process during the fiscal year.”

The deadline for LUMA to show cause is Jan. 3, 2023. Days off and/or holidays are not counted, the PREB noted.