LUMA announces contract to install 1.5 million smart meters

LUMA Energy President & CEO Juan Saca

By The Star Staff

LUMA Energy announced on Tuesday that it has completed the competitive contracting process to begin the next phase of its smart meter initiative, which will allow the installation of some 1.5 million of the devices throughout the island without customers seeing an increase in their rates.

“We are taking a significant step as part of our mission to transform Puerto Rico’s electrical system into a more reliable, resilient and sustainable one,” LUMA President and CEO Juan Saca said in a written statement. “The installation of these smart meters is essential to our long-term goal of improving customer service and ensuring that Puerto Rico becomes a leader in the modernization of the electric system in the Caribbean.”

Saca specified that the selected supplier is Itron, a smart meter technology company based in Washington state whose platform will offer Puerto Rico advanced network intelligence functions. He added that the installation of the meters will involve several local companies, generating more than 150 direct and indirect jobs.

Saca noted that Itron’s platform includes smart meters, a new communications network with redundancy and analysis tools for better detection of interruptions, and a more fluid integration with renewable energies and distributed energy resources. The platform will allow customers to have greater control over their energy consumption and will make it easier for LUMA to respond more quickly to service interruptions and detect manipulation in the system.

Itron’s technology will integrate with the existing infrastructure and will have a 15-year warranty.

“It is an honor to work with LUMA on this historic project to drive grid modernization,” Itron President and CEO Tom Deitrich said. “With Itron’s smart meters, advanced software and proven network platform, LUMA is creating a foundation to ensure greater reliability, resiliency and better customer service, even in extreme weather conditions.”

The installation of the meters will begin in the San Juan region and will extend across the island over the next three years. During the execution of the project, field crews and subcontractors, mostly local, will focus on the safety and quality of the installations, Saca said.

LUMA requests quarterly rate adjustment due to fuel cost hikes.

Later on Tuesday, LUMA said it had submitted to the Puerto Rico Energy Bureau (PREB) the quarterly factors for the adjustment in the cost of fuel (FCA) and the power purchase charge (PPCA), which could translate into an increase of around 2.3 cents per kilowatt-hour in the average bill for residential customers.

According to the company, the increase is due to the increase in fuel costs between June and November, the result of greater energy demand during months with unusually high temperatures and the use of more expensive fuel by Genera PR for electricity generation. LUMA emphasized that the adjustment is not related to its operations or to any change implemented directly by them, since the company does not control generation or fuel costs, nor does it benefit from the increase in rates.

“We know how frustrating it can be for our customers to see an increase in their rates,” said Mario Hurtado, LUMA’s chief regulatory officer, in a written statement. “While LUMA is not responsible for the generation or fuel costs, we remain committed to facing the legacy challenges and working to build a cleaner and more sustainable energy future.”

LUMA said it will continue to offer payment plans, government assistance and subsidized rates for eligible customers facing payment difficulties.