Gov’t officials chide LUMA Energy over performance

House Government Committee Chairman Víctor Parés Otero

By THE STAR STAFF

The island government’s energy sector is criticizing LUMA Energy’s performance in managing federal funds, describing the private operator’s efforts to rebuild the power grid as “poor” and “deficient.”

LUMA stated in a press release that it was not allowed to provide its views at a public hearing held Monday in the House of Representatives.

“That’s poor,” remarked Eduardo Soria, executive director of the Central Office of Recovery, Reconstruction and Resilience (COR3). “The documentation they submit to COR3 for reimbursement has been deficient.”

He added that too much time is wasted correcting the documents turned in by LUMA, which delays the reconstruction process.

Energy Czar Josué Colón Ortiz asserted that “everything that happens in the transmission and distribution system is the sole responsibility of the private operator,” rejecting LUMA’s claim of lacking funds. He noted that the consortium has a consolidated budget of $795 million for the current fiscal year. Meanwhile, Mary Zapata, director of the Puerto Rico Electric Power Authority (PREPA), raised concerns about LUMA’s lack of transparency and indicated that no further vegetation-clearing projects would be approved until the requested reports are submitted.

House Government Committee Chairman Víctor Parés Otero said the legislative response should focus on canceling the contract.

“There is no way to change a contract that is poorly drafted and poorly executed,” he said.

In response, LUMA said it was not allowed the chance to clarify its progress.

“We regret not having had the opportunity to clarify our statements and provide a complete update on our progress since LUMA took over in June 2021, nor to address the many misinterpretations made during today’s hearing,” the company stated in a written response.

The consortium noted that since taking over operations in 2021, it has secured over $2.4 billion in federal funds for 200 projects, of which nine have been completed and 178 are currently underway. LUMA also highlighted its accomplishments, including clearing 6,800 acres of vegetation, installing 182,000 LED lights, replacing 33,000 utility poles, and installing more than 10,000 circuit breakers on the grid, among other initiatives.

“We need the honest and good-faith collaboration of all business partners, collaborators, and the Government of Puerto Rico,” the company emphasized.

Additionally, LUMA warned that 250 more projects are still pending authorization from PREPA.