LUMA outlines key priorities during 2nd day of rate review hearings
By THE STAR STAFF
On the second day of public hearings held by the Puerto Rico Energy Bureau (PREB) as part of the ongoing rate review process, LUMA Energy presented critical information on efforts to stabilize and modernize the island’s electrical system.
During Thursday’s session, discussions focused on Federal Emergency Management Agency (FEMA) funding, vegetation management programs, renewable energy integration, reliability challenges, overloaded circuits following emergency repairs after Hurricane Maria, as well as initiatives to automate the grid and improve public lighting.
Pedro Meléndez, LUMA’s chief officer for capital programs and grid transformation, noted how FEMA funds are applied to Puerto Rico’s electrical system and clarified why certain projects appear under the “Non-Federal Capital” (NFC) category in official reports.
Meléndez stressed that NFC classification does not mean a project is ineligible for FEMA reimbursement. Many urgent transmission and distribution projects fall under that category because they are too critical to delay while FEMA completes its lengthy engineering and eligibility review. Waiting months or years for federal approval, he said, would jeopardize service continuity and increase instability for customers. FEMA ultimately decides which projects qualify for reimbursement based on strict criteria tied to emergency-related damage, compliance with federal guidelines, and the necessity of restoring essential services.
He added that LUMA has a dedicated Federal Funds Office tasked with reconciling completed work and pursuing reimbursement opportunities wherever possible. This approach, Meléndez noted, ensures Puerto Rico maximizes every available federal dollar and helps reduce long-term pressure on customer rates.
“Our commitment remains firm,” he said. “We will continue to secure all eligible FEMA funds while taking timely measures to maintain grid stability, protect customers, and advance the critical reconstruction of Puerto Rico’s electrical system.”
Other topics addressed included vegetation management -- where LUMA employs certified arborists and seeks additional resources to meet state and federal requirements -- continued support for rooftop solar systems, reliability improvements to replace temporary post-Maria repairs, deployment of automated devices to minimize outages, and upgrades to public lighting. LUMA reported more than 180,000 corrections to streetlights
The clarification around 'Non-Federal Capital' projects being critical enough to proceed without waiting for lengthy FEMA review is a key takeaway. It highlights the difficult balance utility companies face between ensuring immediate grid stability and securing long-term federal reimbursements to reduce customer rates. This proactive approach, including LUMA's dedicated Federal Funds Office, seems essential for Puerto Rico's recovery, ensuring the lights stay on for everyone, much like the essential services expected in any vibrant town of salem.