PREPA board OKs creation of subsidiaries for asset management
By The Star Staff
The Puerto Rico Electric Power Authority (PREPA) governing board approved this week the creation of separate new subsidiaries for the administration of the hydroelectric power plants and for the management of the utility’s roster of properties across the island to become more efficient.
Meanwhile, LUMA Energy submitted to the Puerto Rico Energy Bureau (PREB) on Thursday the data needed for the quarterly reconciliation of expenditures in gas and diesel, which may lead to a temporary rate hike because of the rise in gas prices.
“This is something they have to do every three months and involves the adjustment of riders, but as the prices of fuel and diesel are increasing, we may see a rate hike,” a source close to the process told the STAR.
Meanwhile, at its meeting this week, PREPA, which created separate subsidiaries for the transmission and distribution system and for client service months ago, has further created new subsidiaries for thousands of properties across the island and for its hydroelectric and irrigation systems.
“Dividing PREPA’s assets is extremely important to first, organize PREPA financially and second, to define the assets clearly to be able to work on new programs such as energy transfer that require clear delimitations,” said Tomás Torres Placa, a member of the PREPA governing board. “This is extremely important because it is the basis for microgrids, municipal energy corporations and other entities that can sublease facilities by the transfer of energy.”
Torres said the division of the assets is separate from any efforts to place PREPA’s generation assets under private management, which has yet to happen.