LUMA Energy countersues Puerto Rico government over contract cancellation

LUMA Energy, the private consortium that manages Puerto Rico’s transmission and distribution system, filed a countersuit against the territorial government after officials sued to cancel its multimillion‑dollar contract. The company alleges the government is acting in bad faith and with “intentional malice” to fulfil a campaign promise, and warns that terminating the agreement would cost the island at least $4.5 billion in damages and operational losses, jeopardise the electric grid and risk federal funding.

LUMA asserts that the contract, extended in 2022, is legally valid and that ending it would create chaos for its roughly 4,000 employees and 1.5 million customers. The dispute follows ongoing problems with Puerto Rico’s power infrastructure, which remains in bankruptcy after Hurricane Maria and decades of neglect.

The countersuit comes six months after the government’s initial legal action, highlighting a deepening conflict over the island’s energy future.