Puerto Rico energy sector faces grid strain and legislative scrutiny

Puerto Rico’s energy sector is facing significant operational and legislative challenges. LUMA Energy has warned that the rapid expansion of rooftop solar is straining the electrical grid, reporting that over 120 substations and 145 circuits are operating above 90% load capacity. The utility cited voltage instability and overloaded feeders as primary concerns, calling for a more rigorous interconnection framework.

In response to ongoing service reliability issues, Representative Roberto J. López Román has introduced House Bill 1042, known as the ‘Automatic Credit for Outages Act.’ The proposed legislation would mandate that LUMA Energy automatically apply bill credits to customers experiencing power outages exceeding four hours, removing the need for manual claims. The bill also seeks to require monthly publication of reliability metrics.

Separately, the administration faces scrutiny regarding a failed $5.9 billion, ten-year contract with Power Expectations intended to install 400 megawatts of temporary generation. The deal collapsed following allegations of false representations and failure to deposit required guarantees. Governor Jenniffer González has stated she was ‘left out of the loop’ regarding the negotiations conducted between the Puerto Rico Electric Power Authority, the Public-Private Partnerships Authority, and the Office of Acquisition.