Fiscal board: No known candidates to replace LUMA

By THE STAR STAFF

The Financial Oversight and Management Board for Puerto Rico is not aware of any companies seeking to succeed LUMA Energy as the island’s transmission and distribution operator. The remarks in a social media post come as debate intensifies over the future of Puerto Rico’s energy transformation.

Transitioning grid and generation operations from the Puerto Rico Electric Power Authority (PREPA) to private operators has been a cornerstone of the island’s energy reform. The shift is mandated by Puerto Rico Act 120-2018 and the PREPA Fiscal Plan, both of which require private-sector involvement to modernize the system. Every administration has endorsed such a transformation, citing the need for expertise to stabilize and improve the grid.

The oversight board emphasized that it is unaware of any candidates to replace LUMA or that the Public-Private Partnerships Authority has launched a transparent, competitive process to identify alternatives.

“The return of transmission and distribution operations to PREPA would be an unacceptable outcome and contrary to law and policy,” the board noted.

While discussions about modifying or even terminating the current contract continue, the board warned that any changes must avoid operational chaos.

“This process must be managed carefully to ensure continuity and compliance with Puerto Rico’s energy policy,” it said.