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  • Writer's pictureThe San Juan Daily Star

Governor: Some power plants will eventually be decommissioned under PREPA generation PPP

Palo Seco power plant


Gov. Pedro Pierluisi Urrutia said Tuesday that a planned private operator will decommission power plants under the public-private partnership (PPP) for the Puerto Rico Electric Power Authority (PREPA) legacy generation assets.

Municipalities and private energy providers will also be allowed to provide energy to the island’s power grid.

Pierluisi said that as soon as La Fortaleza officials review it, he will summon a press conference to provide details of the proposed PPP contract. The decommissioning of the legacy power plants, including Palo Seco, is also established in the Integrated Resource Plan.

“The Energy Transformation Law establishes a portfolio that requires the government to transform the system monthly to renewable energy use. To the extent that that happens, it is correct that some of the plants will no longer be needed,” the governor said. “But this [shutdown] has to be an orderly process because right now is not the time to shut down plants. But [that time will arrive] to the extent that renewable energy projects begin to materialize at the industrial level.”

Unlike the current model, in which PREPA is the only entity in charge of generating energy, private, municipal and community companies and others will be allowed to generate electricity under the new model, Pierluisi said.

“I anticipate that when we decide at La Fortaleza, if it is for the contract to be signed, it will be signed; and if the fiscal control board wants to review it, it can review it,” the governor said. “But I doubt there will be an amendment or modification because this has already gone through the revision of the fiscal board, the [Puerto Rico] Energy Bureau, the Public-Private Partnerships committee, and the PREPA governing board. And all those entities have given it the go-ahead.”

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