Regulator approves power rate reduction effective in January

According to the resolution and order issued by the island Energy Bureau, the combined impact of the approved factors for the fuel purchase clause and power purchase clause represents a total decrease of $0.012739 per kilowatt-hour (kWh), which translates into an approximate 4.6% reduction in the bill of a non-subsidized residential customer consuming 800 kWh per month. From Jan. 1 through March 31, the cost per kWh will be $0.26.

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) has approved a temporary reduction in the cost per kilowatt-hour (kWh) that will take effect on Jan. 1, 2026. The adjustment stems from the determination of factors under the quarterly adjustment clauses applicable to the Puerto Rico Electric Power Authority’s permanent rate.

According to the resolution and order issued by the PREB, the combined impact of the approved factors for the fuel purchase clause and power purchase clause represents a total decrease of $0.012739 per kWh. That translates into an approximate 4.6% reduction in the bill of a non-subsidized residential customer consuming 800 kWh per month. From Jan. 1 through March 31, the cost per kWh will be $0.26.

For that residential customer, the average bill will drop from $220.05 during the October-December 2025 quarter to $209.85 in the January-March 2026 period, an estimated monthly savings of $10.20.

In addition, the PREB deferred a total of $55 million related to costs associated with interruptions in the liquefied natural gas (LNG) supply at the San Juan LNG terminal operated by New Fortress Energy, preventing those costs from being passed on to consumers at this time. Of that amount, $52.5 million was deferred in the current reconciliation, while $2.5 million had been deferred previously.

The PREB emphasized that the most recent deferral does not constitute approval of the incurred costs. Any eventual recovery will be subject to evaluation and verification of supporting evidence once the contractual claims process concludes.

“If the claim is unsuccessful, and after the legal process is completed, the PREB will be required to make the necessary adjustments during the corresponding reconciliation process to recover any resulting deficiency, in compliance with its duty to ensure that only prudent and reasonable costs are recognized and passed on to consumers,” the resolution states.

Finally, the PREB ordered electric power transmission and distribution system operator LUMA Energy to implement the approved factors starting Jan. 1, and required submission of the next quarterly factor proposal by March 16, 2026.