Energy regulator to hold public hearings to set new basic rates

Hannia Rivera Díaz, executive director of the Independent Consumer Protection Office (X via Oficina Independiente de Protección al Consumidor)

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) will begin hearings next Wednesday, Nov. 12, aimed at setting new basic electricity rates as mandated by Law 57 of 2014, known as the Energy Transformation and Relief Act.

The Independent Consumer Protection Office (OIPC by its initials in Spanish), part of the Public Service Regulatory Board, will participate as an intervening party to represent and defend the interests of electricity consumers, announced its executive director, attorney Hannia B. Rivera Díaz.

“OIPC is actively involved as an intervenor to ensure fair representation for all electricity consumers,” Rivera Díaz said. “Thanks to our intervention, consumers are currently paying $67 million less under the provisional rate that took effect on September 1. Our main role in this process is to ensure that the permanent rate approved by the Energy Bureau is fair and reasonable for everyone.”

The hearings will be held in person at the PREB’s facilities and streamed live via its official YouTube channel. Rivera Díaz encouraged the public to stay informed and follow official announcements from both the OIPC and the PREB, which will detail the specific dates when consumers can submit their statements and comments.

Participants in the rate review process include the Puerto Rico Electric Power Authority (PREPA), LUMA Energy, Genera PR, OIPC, the Institute for Competitiveness and Economic Sustainability, SESA Puerto Rico, bondholder representatives and others.

“OIPC will continue to contribute its technical expertise to ensure that the Energy Bureau’s decisions are based on evidence, rigorous analysis, and the best interests of consumers,” Rivera Díaz added. “It is our duty to ensure that every decision supports a more just, efficient, and sustainable energy system for Puerto Rico.”

The PREB will announce thematic panels and additional hearing dates in the coming days. The regulator has been holding rate review hearings in a private manner with stakeholders.

The rate must cover funding for PREPA to pay its debt, which currently stands at almost $9 billion, as well as for pensions. A proposed Plan of Adjustment that is part of PREPA’s bankruptcy process notes that PREPA’s total asserted claims of over $10 billion would be reduced by nearly 80%, to about $2.6 billion. Bondholders, originally claiming $8.5 billion, would receive approximately $1.4 billion, while fuel line lenders and unsecured creditors would also see significant reductions.

The plan also includes provisions to fund pensions for more than 12,000 retirees, with the pension system being frozen and future benefits paid through defined contribution accounts. Those obligations are to be financed through PREPA’s operating revenues, which come from customer rates.

At the same time, there is a dispute around the debt adjustment plan as parties are rejecting it.