Energy Bureau orders PREPA to report on procurement to deal with power generation shortfall

The emergency power generation procurement was prompted by a March filing from Genera PR LLC warning of an 800-megawatt generation deficit following the loss of Aguirre Unit 1. Genera cautioned that without swift remedial action, Puerto Rico’s electrical grid faced heightened risks of cascading failures and rolling blackouts, particularly as summer demand surged.

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) has ordered the Puerto Rico Electric Power Authority (PREPA) to submit a detailed progress report by Wednesday on the status of the emergency generation procurement process launched earlier this year to address a critical shortfall in power generation capacity.

The directive comes more than six months after the PREB authorized PREPA to begin the acquisition process for temporary emergency generation resources through the Independent Third-Party Procurement Office (3PPO), under the oversight of the Public-Private Partnerships Authority (P3A). Despite the urgency of the situation, the PREB said in a resolution filed Oct. 10 that it has yet to receive sufficient information to assess the progress or effectiveness of the initiative.

The emergency procurement was prompted by a March filing from Genera PR LLC, which warned of an 800-megawatt (MW) generation deficit following the loss of Aguirre Unit 1. Genera cautioned that without swift remedial action, Puerto Rico’s electrical grid faced heightened risks of cascading failures and rolling blackouts, particularly as summer demand surged.

“Genera stated that the loss of Aguirre Unit 1 has caused a shortfall of generation capacity, severely straining the system at a time when peak demand is rising with the onset of the summer season,” the resolution says. “It noted that this deficit increases the risk of cascading failures, places undue strain on other generating units, and raises the likelihood of rolling blackouts.”

LUMA Energy, the island’s transmission and distribution operator, confirmed Genera’s assessment, estimating the shortfall at between 700 and 850 MW. In response, the PREB supported the deployment of temporary generation to stabilize the grid, emphasizing the need for rapid installation and cost-effective solutions.

Now, with the summer season over and no clear public update on the procurement’s progress, the PREB is demanding transparency. The ordered report must include:

* A current project timeline with achieved milestones and upcoming targets

* A list of suppliers contacted and their participation status

* Legal, technical and financial documentation, including evaluation methodologies

* Status of contracts and draft agreements

* Updates on permits, licenses and interconnection studies

* Budget details and any cost deviations

* A summary of actions taken and communications with stakeholders

* Identified obstacles or delays

* A forward-looking work plan with estimated completion dates

* All relevant request for proposal documents and correspondence with the 3PPO, P3A and suppliers.