Governor defends her administration’s stance in dispute with LUMA
- The San Juan Daily Star
- Oct 21
- 2 min read
By THE STAR STAFF
Gov. Jenniffer González Colón defended her administration Tuesday from claims it owes LUMA Energy $800 million and is causing financial problems to the private operator of the island’s electric power transmission and distribution system.
The House Government Committee, chaired by Rep. Víctor Parés Otero, has summoned top energy officials to a public hearing to account for LUMA’s multimillion-dollar debt claims and its management of public funds.
Parés Otero called on LUMA President & CEO Juan Saca, Puerto Rico Electric Power Authority (PREPA) Executive Director Mary Carmen Zapata and island Energy Czar Josué Colón Ortiz to appear before the committee and submit all relevant documentation under oath.
The government has criticized LUMA’s financial practices and its access to PREPA-managed accounts funded by electricity bill payments from the public.
González Colón defended the government’s position, stating that LUMA has full access to the account where electricity payments are deposited, but the government does not interfere in its management.
“We explained how much of the bill goes to LUMA and how much to Genera,” González Colón said, referencing visits to the San Juan and Palo Seco plants in recent weeks. “The government of Puerto Rico does not manage these resources. LUMA has failed to manage its liquidity due to excessive spending in other areas.”
The governor warned that LUMA has historically relied on government loans to cover its shortfalls -- raising the risk that bondholders could pressure the government to cover PREPA’s bankruptcy-related debts using the General Fund.
“They’ve spent over $745 million beyond what’s reflected in the bills,” she said. “The House is right to demand transparency on how these funds are being used. LUMA invests heavily in TV ads to deflect blame, but the reality is that all Puerto Ricans are paying into a common fund that LUMA manages.”
González Colón criticized the grid operator’s administrative decisions, citing reports of excessive spending on hotels, travel and meals.
“They act as if the money is limitless and expect the government to keep covering the costs,” she said. “If that were the case, the government would still own PREPA.”
The governor reiterated her stance that LUMA’s contract is nearing its end.
“This is a form of blackmail -- ‘If you don’t keep me, I’ll keep causing problems,’” she said. “But there’s no turning back. We’re following the steps outlined in the contract, including mediation and direct communication.”
González Colón also pointed out that while LUMA claims to be owed money, it has already received over $800 million in recent years, with allocations approved by the Financial Oversight and Management Board. She contrasted LUMA’s performance with that of Genera, which has successfully secured federal reimbursements for plant repairs and construction.