Puerto Rico administration disputes LUMA Energy contract and rate hikes

Puerto Rico Governor Jenniffer González Colón and her administration have intensified their opposition to LUMA Energy, criticizing the company's performance and recent electricity rate increases. Governor González described the company's management as a failure, stating that LUMA was hired to solve problems rather than 'administer excuses,' particularly regarding the use of federal funds for grid transformation.

Public Affairs Secretary Jean Peña Payano accused the Financial Oversight and Management Board (FOMB) of favoring LUMA after the Board filed an amicus curiae brief with the Puerto Rico Supreme Court to defend the continuity of LUMA's contract. The administration maintains its position to terminate the contract and is evaluating alternative companies to manage the transmission and distribution system.

The government also challenged the Energy Bureau for authorizing electricity bill increases, questioning why the regulator accepted cost proposals from LUMA. In response to rising costs, the administration is exploring legal and financial alternatives to mitigate the impact on families, including proposals involving the sales and use tax (IVU).