PREB approves amendments to Energiza gas-fired plant contract

Puerto Rico Energy Bureau Chairman Edison Avilés Deliz

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) of the Public Service Regulatory Board has announced the approval of an amendment to the power purchase and operating agreement between the Puerto Rico Electric Power Authority (PREPA) and Energiza LLC for the development of a natural gas-fired generation plant.

ThE amendment includes an increase in contracted capacity from 478 megawatts to 560 megawatts, a decrease in the capacity payment from $21.05 per kilowatt-month to $19.55 per kilowatt-month, and additional provisions ensuring that any savings from refinancing are passed on to customers. Projections indicate that the changes could lead to some $302 million in savings over the contract’s duration.

The PREB emphasized that the amendments align with the approved Integrated Resource Plan and the need to add 3,000 megawatts of generating capacity to stabilize the island’s electrical system.

In its statement, the PREB confirmed that the capacity increase to 560 megawatts is both reasonable and beneficial for the electrical system and customers alike.

“The reduction in the capacity payment to $19.55 per kilowatt-month is a significant measure that translates into direct savings for customers, even amid inflation and market factors that, in principle, would not suggest lower prices than those previously approved,” the PREB said in its decision.

“The additional provisions in this amendment ensure that if PREPA successfully emerges from bankruptcy and Energiza refinances its debt, the resulting economic benefits will be directed to the public corporation and its customers,” the regulator noted.

The decision received unanimous support from all commissioners.