Puerto Rico PPD proposes using $131 million emergency fund for electricity relief

The Popular Democratic Party (PPD) Senate delegation has introduced three legislative measures to utilize $131.6 million from the Emergency Reserve Fund to mitigate rising electricity costs. The proposal aims to prevent consumers from bearing the full impact of rate increases scheduled for the October to December 2026 quarter.

The initiative follows an Energy Bureau decision to increase rates from 28.57 to 33.85 cents per kilowatt-hour, representing an 18.5 percent hike. For a residential customer consuming 800 kWh monthly, this translates to an approximate increase of $42.27 per bill. Commercial impacts are also significant, with small businesses facing monthly increases of $63.42 and large industrial clients potentially seeing increases of up to $29,108.

Senator Luis Javier Hernández Ortiz stated that the funds are specifically designated for emergencies and that the legislation is necessary to legally allow the use of the reserve for this purpose. Additionally, lawmakers suggested a long-term shift away from diesel toward liquefied natural gas or renewable energy to address fuel cost volatility.