Energy regulator seeks detailed list of close to 300 excluded projects

According to the consolidated list submitted by the Puerto Rico Electric Power Authority, LUMA Energy, as the private operator of the authority’s transmission and distribution system, has been the most impacted by the elimination of projects. (Facebook via LUMA Energy)

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) has mandated that the Puerto Rico Electric Power Authority (PREPA), LUMA Energy, and Genera PR provide comprehensive details about nearly 300 infrastructure projects and damages that were left out of the Consolidated Project List funded by the Federal Emergency Management Agency (FEMA) under the Accelerated Award Strategy (FAASt).

According to the consolidated list submitted by PREPA, LUMA, as the private operator of PREPA’s transmission and distribution system, has been the most impacted by the elimination of projects. The revised list has cut the number of transmission and distribution projects from 571 down to 282, resulting in the exclusion of 289 projects. The excluded projects have already racked up around $402 million in costs, which may now be deemed ineligible for reimbursement from FEMA.

In a resolution and order, the PREB pointed out that FEMA allocated some $10.7 billion to address damages to PREPA’s assets under the FAASt agreement. However, the PREB expressed concern that the new consolidated list “deviates significantly from FEMA’s original allocation.” In light of this, the PREB is seeking confirmation that the listed projects comply with FEMA regulations and that all identified damages are duly addressed within the approved funding framework.

The PREB underscored that “any facility or damage not repaired within the scope of the current allocation may remain ineligible for future FEMA disaster funds.” In its resolution and order, the PREB instructed PREPA, LUMA, and Genera to clarify the reasoning behind the exclusion of previously identified damaged projects or those with incurred costs. They must specify whether the exclusions were based on FEMA’s determinations or internal strategic priorities.

In addition, the three entities are required to outline how they plan to finance the costs linked to the 289 inactive projects and assess the potential repercussions on project execution and customer service, particularly if the incurred expenses turn out to be non-reimbursable under FEMA’s current programs.

The PREB has provided the entities with a 20-day deadline to submit a detailed breakdown of specific damages that will be repaired under the consolidated list, categorized by asset type and subcategory, along with those that will not be addressed under the FEMA allocation.

“The information requested is vital for comparing the projects listed in the consolidated list with the damages acknowledged in FEMA’s allocation,” the resolution states, “to guarantee the optimal use of federal funds, adherence to federal requirements, and protection of ratepayers from potential future costs due to unrepaired assets or unapproved expenses.”

The PREB also emphasized that strict compliance with its directives “is not optional; it’s crucial for advancing the reconstruction and stabilization of Puerto Rico’s energy system.”