LUMA quarterly report shows $28 million deficit

By The Star Staff

In its quarterly report submitted to the Puerto Rico Energy Bureau earlier this week, the LUMA Energy consortium, which since June 1 has been in charge of the island’s energy transmission and distribution system, reported a new deficit of $28 million, corresponding to the period between Oct. 1 and Dec. 31, 2021.

The document details that despite having a budget of $130 million for the second quarter, LUMA’s expenses amounted to about $158 million, according to local press reports.

LUMA attributed the excess expenses to the fact that it had to invest in training temporary employees, as well as the payment of overtime, the reports said.

“In addition, there were higher-than-expected activities and costs related to vegetation control work during the second quarter, when LUMA was about to receive approval to start the transition from less efficient contracts inherited from PREPA (Puerto Rico Electric Power Authority) to new, more profitable contracts,” reads the document, in which no details of the contracts are offered.

For vegetation management alone, a deficit of $7.2 million was recorded. The report indicates that there was a budget of $12.8 million, but expenses for that item were $20 million.

In miscellaneous expenses, the excess was $4.7 million above what was projected, while in mileage, per diem and transportation there was also an expense of $4.2 million higher than what was budgeted.