Lawmaker: Gov’t needs to go to court over suspended LNG deliveries
By THE STAR STAFF
Rep. José “Cheito” Hernández Concepción urged the government on Wednesday to take New Fortress Energy (NFE) to court, warning that the ongoing dispute over the company’s liquefied natural gas (LNG) deliveries could drive up electricity bills in the next quarterly adjustment.
Hernández, who chairs the House Committee on Transportation and Infrastructure, said the contract between the government and NFE does not allow the company to withhold the entry of its LNG barge until payments are made. In his view, the company is already edging into noncompliance.
“The contract has mechanisms to address payment discrepancies -- either you sit at the table or you go to court,” he said during an interview on “Normando en la Mañana.” “The government needs to consider going to court to stop this practice.”
The legislator noted that the situation began nearly a month ago with the dispute involving harbor pilots, which was resolved in federal court last Thursday. Hernández said NFE requested permission to bring in the barge on Friday and again on Sunday, but later withdrew the request.
Asked why the government has not taken action, Hernández said officials “are not exhausting their mechanisms.” He warned that the longer the barge remains offshore, the greater the impact on consumers.
“This could increase the light bill when the next quarter is evaluated,” he said.
The committee has scheduled a public hearing for next Tuesday at 10 a.m., calling the Puerto Rico Energy Bureau (PREB), the Puerto Rico Electric Power Authority (PREPA), and the NFE president to testify.
Hernández was blunt in his assessment of the agreement.
“This contract is a disaster, a disaster,” he said. “They left everything in New Fortress’ hands.”
During a hearing on Tuesday, NFE rejected allegations of coercion and confirmed that the tanker Amur River remains unable to enter the San Juan dock due to a payment dispute with the PREB and PREPA.
