Puerto Rico Supreme Court to hear LUMA Energy contract challenges

The Puerto Rico Supreme Court has agreed to hear lawsuits filed by the administration of Governor Jenniffer González Colón seeking to cancel the contract held by LUMA Energy. The legal proceedings focus on whether the extension of LUMA’s supplementary contract was validly approved. Under Law 129 of 2009, a unanimous vote from the Board of Directors of the Puerto Rico Electric Power Authority (AEE) is required for such renewals; however, the recent approval included two abstentions, leading to questions regarding its legality.

Governor González Colón has called for the immediate cancellation of the controversial temporary generation contract if any breach of contract or impropriety is identified. She confirmed that the matter has been referred to federal authorities for review. The Governor criticized the Financial Oversight and Management Board for taking ten months to raise objections to the contract, arguing that a more timely intervention could have allowed for a new competitive bidding process.