PREB extends deadlines to resolve disputes between PREPA and clean energy project developers.

Gov. Jenniffer González Colón

By THE STAR STAFF

Puerto Rico’s accelerated push toward renewable energy advanced this week as the Puerto Rico Energy Bureau (PREB) issued new directives, granted confidential treatment to multiple filings and extended negotiation deadlines amid ongoing disputes between the Puerto Rico Electric Power Authority (PREPA) and several proponents of renewable energy project developers.

The actions are part of a broader effort following Executive Order OE‑2025‑047, signed on Sept. 22, 2025 by Gov. Jenniffer González Colón. The order expanded Puerto Rico’s energy emergency declaration and authorized extraordinary measures to accelerate the review and approval of renewable energy and energy‑storage projects eligible for federal Investment Tax Credits under the One Big Beautiful Bill Act (OBBA). In response, the PREB issued guidelines on Sept. 26, 2025, directing PREPA to expedite the acquisition process for renewable resources.

After initial procedural delays, the PREB approved a group of renewable and storage projects on Dec. 30, 2025, instructing PREPA to negotiate contracts with selected proponents and submit draft agreements for final regulatory review within 10 business days. A subsequent order on Jan. 16 of this year reinforced the timeline by establishing Feb. 15 as the deadline for completing negotiations and requiring PREPA to submit updated status reports every five days until the negotiation process concluded.

On Feb. 6, 2026, the PREB ordered PREPA to notify project proponents that were not selected in December that they had three days to submit improved pricing proposals for their previously submitted projects. The PREB emphasized that, pursuant to its Jan. 16 Resolution, contracts were still expected on or before Feb. 15 unless both parties requested an extension.

One of the earliest responses came from Yabucoa Energy LLC, which filed a motion on Feb. 18 explaining that it had never received a formal determination on its proposal but had been invited through the Power Advocate platform to submit improved pricing. Yabucoa stated that it requested clarification from PREPA on Feb. 9 and provided revised pricing at that time. The company added that its filing was intended to keep the PREB informed of the status of its shovel‑ready battery energy storage project. Yabucoa requested provisional confidential treatment for its correspondence, which it said included commercially sensitive information. The PREB later granted the request and allowed 10 days for Yabucoa to submit a supporting legal memorandum.

Meanwhile, PREPA filed a motion on Feb. 20 describing its progress with three unnamed project proponents. PREPA reported that negotiations with Proponents 1 and 2 were ongoing, but it had been unable to reach agreement with Proponent 3. PREPA submitted a draft contract with comments for the PREB’s review, asserting that the proponent’s requested changes substantially deviated from the Tranche 4 model contract. PREPA asked the PREB for guidance on how to resolve the outstanding issues and requested confidential treatment for certain exhibits, citing the presence of deliberative materials.

On Feb. 23, Proponent 3 filed its own motion, claiming that it had participated diligently in negotiations and had submitted revisions and improved pricing, but arguing that PREPA had not provided a complete record to the PREB. The proponent asked regulators to intervene by addressing disputed contractual provisions and reviewing its proposed revisions. The PREB noted, however, that the motion lacked supporting documentation.

In a follow‑up filing on Feb. 26, Proponent 3 argued that PREPA’s earlier submission included only its revisions to the Energy Storage Services Agreement and excluded its revisions to the Purchase Power and Operation Agreement, its improved pricing offer, and responses to PREPA’s comments. Proponent 3 contended that those omissions left the record incomplete and requested that the PREB direct PREPA to meet with it immediately to address remaining contractual issues and explore alternative proposals.

PREPA submitted another motion on Feb. 27, reporting that Proponent 1 had failed to respond to a key inquiry and had not provided adequate justification for proposed contract changes, making finalizing negotiations impossible. PREPA submitted the draft contract with comments and again requested guidance. In contrast, PREPA informed the PREB that it had reached substantial agreement with Proponent 2 and submitted a minimally redlined contract for review.

On March 2, Yabucoa Energy filed the required legal memorandum supporting its request for confidential treatment.

After reviewing the filings, the PREB granted confidential designation to all the referenced exhibits. The PREB acknowledged that PREPA had been unable to reach an agreement with Proponent 1 and granted both parties an additional three days to attempt a resolution, stating that if no agreement was achieved, there would be nothing for the PRE to rule on. It also confirmed that Proponent 2 had reached agreement with PREPA and that the submitted contract was under review.

Regarding Proponent 3, the PREB found potential for progress and ordered PREPA and the proponent to meet within three days to attempt to resolve outstanding matters. The PREB instructed PREPA to submit any resulting agreement immediately after the meeting or within the same three‑day period. Regulators also reminded PREPA that it must notify the PREB even if negotiations fail and warned that noncompliance could result in fines under Article 6.36 of Act 57‑2014.

With Puerto Rico’s renewable energy transition tied to both local policy mandates and federal incentives, the coming days will be pivotal in determining whether the accelerated contracting timeline can be met.