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Puerto Rico Power Company Temporarily Suspends $65M in Upgrades

26 Jun 2024
Luma Energy, the private operator of Puerto Rico's power grid, confirmed on Monday the deferral of $65 million worth of maintenance and improvement projects due to budget constraints. This includes maintenance of over 100,000 light posts, fire mitigation measures, and repairs to underground circuits, postponed for at least a year. 

 

Mario Hurtado, Luma Energy's head of regulatory affairs, emphasized that the deferred projects increase the risk of outages in public lighting and overall grid security. Despite budget pressures, the company prioritized other tasks, deeming them acceptable risks.

Local reactions have been mixed, with some expressing understanding given the complex operational environment Luma Energy faces, while others voice concerns over potential impacts on service reliability and long-term infrastructure stability.

Luma Energy remains committed to its mission of improving Puerto Rico's energy infrastructure and assures stakeholders that this temporary measure is aimed at optimizing resources and ensuring sustainable project delivery in the future.

Puerto Rico, with 3.2 million residents, continues to face frequent power outages more than six years after Hurricane Maria, compounded by hurricanes, earthquakes, and inadequate investment hindering the recovery of the electrical infrastructure.

The central issue remains the stabilization of the power grid, particularly following a major blackout in mid-June that left many customers without power during a heatwave.

 

Source: Associated Press

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