Solar associations reject hike in residential charge

By THE STAR STAFF

The Puerto Rico Solar Energy and Storage Association (SESA), along with Solar United Neighbors (SUN), has called on the Puerto Rico Energy Bureau (PREB) to reject LUMA Energy’s proposal to increase the fixed residential charge from $4 per month to $15, starting Jan. 1, 2026.

“LUMA’s request represents an increase that nearly quadruples the current charge and places an unfair economic strain on households and families across the island,” said Javier Rúa Jovet, SESA’s public policy director.

SESA President PJ Wilson added that “LUMA has failed to provide any analysis on how such a drastic hike would impact a population where over half rely on assistance to meet their basic needs.”

“Introducing an additional fixed charge of $11 per month will only worsen the affordability crisis,” he said.

Wilson further noted that the proposal also includes six new charges that could push the base rate to more than $40.

The organizations argued that the proposal goes against the principle of gradualism in rate design, which the PREB itself advocates in order to ensure predictable and phased adjustments that prevent sudden spikes in charges. They highlighted that an increase of more than 350% is unusually steep compared to other U.S. jurisdictions.

David Ortiz, director of the SUN program in Puerto Rico, stressed that such a significant hike contradicts the goals of efficiency, conservation and energy transition, as it undermines incentives for saving energy or investing in technologies that help manage consumption.

The organizations urge maintaining the current fixed charge while considering gradual adjustments based on volumetric charges per kilowatt-hour to foster efficiency, affordability and support for distributed energy systems.