PREB denies PREPA request to postpone requirements of FEMA accelerated award strategy.

Puerto Rico Energy Bureau Chairman Edison Avilés Deliz

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) has denied the Puerto Rico Electric Power Authority’s (PREPA) request to postpone key requirements around the Federal Emergency Management Agency (FEMA) Accelerated Award Strategy (FAASt), affirming the necessity of regulatory oversight to protect ratepayers and ensure responsible use of federal funds.

The PREB, however, granted PREPA a brief extension to finalize a required implementation plan.

In a resolution issued last Friday, the PREB addressed PREPA’s Feb. 20 motion seeking reconsideration of earlier orders. “Federal grant administration requirements expressly require recipients and subrecipients to comply with applicable statutory, regulatory, and award conditions, including those arising under state and territorial law,” the PREB stated. “Compliance with such requirements constitutes an inherent component of project eligibility, feasibility, and allowability determinations and therefore represents a prerequisite condition to project advancement within the federal funding lifecycle.”

PREPA had argued that it should not have to comply with the PREB’s directives until reconciliation and FEMA review processes concluded. The PREB firmly rejected that argument, stating, “Concerns regarding potential cost overruns, unsubmitted expenditures, or reimbursement uncertainty are portfolio-wide considerations appropriately addressed through ongoing reconciliation and coordination with FEMA and do not constitute a basis to defer compliance with the Energy Bureau’s directives.”

The PREB emphasized its continued oversight role, even for projects previously approved.

“Submission of the Consolidated Project List raised material questions regarding the status of projects previously approved, the extent of incurred costs, and the potential exclusion of projects from federal reimbursement pathways,” the regulator stated in the order. “… Visibility into both active and inactive initiatives was necessary to ensure accurate accounting of recovery investments and to assess potential eligibility risks associated with project exclusion or reclassification.”

While standing by its prior orders, the PREB recognized PREPA’s need for a limited extension.

“PREPA has represented that the requested extension is brief, made in good faith, and intended to facilitate submission of the implementation plan,” the order said.

The PREB granted PREPA until this Tuesday to comply, but clarified, “Such extension does not alter the determinations adopted … nor does it suspend the applicability of the directives contained therein.”

With those statements, the PREB reaffirmed its commitment to “timely utilization of available funding … to maximize federal recovery resources and to expedite the reconstruction process,” while protecting consumers from unnecessary financial risk.