Energy Bureau orders Genera to disclose full impact of NFE restructuring

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) has ordered Genera PR to turn over extensive financial and operational information within 10 days, citing concerns over the ongoing restructuring of New Fortress Energy (NFE), the parent company and contractual guarantor responsible for backing Genera’s performance under the island’s generation operation and maintenance agreement (OMA).

In a detailed resolution and order issued Sept. 4, the regulator said it must assess whether NFE’s financial condition and corporate changes could affect Genera’s ability to operate Puerto Rico’s legacy power plants and to secure a reliable fuel supply. The PREB emphasized that Act 57-2014 requires it to safeguard the continuity and reliability of the electrical system.

The order follows an Aug. 27 public hearing of the Government Committee of the island House of Representatives, where lawmakers asked the PREB to examine the implications of NFE’s widely reported financial distress and restructuring.

NFE entered a restructuring support agreement in March of this year involving major debt reductions, separation of its Brazilian business, and a shift in ownership and control. The process has unfolded through UK Part 26A proceedings and U.S. Chapter 15 recognition.

The PREB noted that NFE itself disclosed “substantial doubt” about its ability to continue as a going concern in its March 31, 2026 Form 10‑Q, warning that even after restructuring, the company would face “substantial risks,” including the need for additional funding.

“Even if the Restructuring Transaction is completed, the Company will continue to face substantial risks,” NFE wrote in the filing.

Because NFE guarantees Genera’s obligations under the generation OMA, the PREB said the restructuring raises direct questions about the “continuity and practical value of the Guarantee.”

The order highlights that several NFE affiliates are responsible for supplying natural gas to PREPA facilities operated by Genera, including: the Multi‑Site LNG supply agreement, San Juan Units 5 and 6, and the Energiza project.

Any disruption in financing, capital availability or corporate structure could affect fuel delivery, infrastructure investments or credit support.

The PREB also raised concerns about whether Genera has complied with Section 8.2 of the generation OMA, which requires the operator to deliver NFE’s quarterly and annual U.S. Securities and Exchange Commission (SEC) filings to the Public-Private Partnership Authority (P3A) and the PREB.

Genera previously submitted a letter with a general hyperlink to NFE’s EDGAR page, but the PREB said the filing lacked specific reports, dates, or evidence of delivery.

The letter “did not identify the Forms 10‑Q or Forms 10‑K purportedly delivered … or documentary evidence of such delivery,” the PREB wrote.

The order seeks numerous files, including all SEC filings or financial statements, all P3A communications regarding financial reporting, identification of the post‑restructuring guarantor, and an analysis of capital‑investment capacity, among others.