1. Puerto Rico Energy Crisis and Regulatory Confusion
NASUCA Mid-Year Meeting
Minneapolis, MN
June 26, 2018

13. State Regulation of PREPA
2014 – The Energy Transformation and Relief (Act 57) enacted, creating the P.R. Energy Commission and Independent Office of Consumer Protection
First Rate Case decision issued by the Commission
Establishment of PROMESA and “La Junta” for a bankruptcy process for restructuring debt
Hurricane Maria kills thousands and devastates the grid
SB 860 becomes law (6/14/18), setting a path for privatization of the electric grid, and a competitive bidding system for electric generation.

14. Privatization Plans under SB 860
Public Private Partnerships Authority (PPA) will manage a bidding process to sell off PREPA’s power plants.
Generation will become a “competitive” process whereby the Energy Commission can approve or disapprove each proposal within 15 days
Transmission and Distribution system will be operated under a long-term “concession”
Law conditioned upon the adoption of new IRP in 180 days.

15. SB 860 fallout (continued)
Energy Commission and Consumer Advocate survived intact.
Commission members expanded from 3 to 5. All new members to be appointed by Governor.
P3 issued by PPA, inviting interested private energy providers to submit bids, along with ideas for how they wish to be regulated.

16. Some entities wanting a say in PREPA’s future
Gov. Rossello (New Progressive Party)
Public Private Partnerships Authority (PPA)
PREPA Fiscal Board
PROMESA (La Junta)
UTIER – the electric workers union (La Syndicate)
US Dept. of Energy contract with Southern States Energy Board
Energy Commission

19. AARP Advocacy for Preserving Energy Regulatory System

20. Reorganization Bill Passed Yesterday
HB 1408 Passes the Senate yesterday (6/25/18)
Gov. Rossello expected to sign.
Energy Commission and Consumer Advocate to be merged and placed under an umbrella Regulatory Board controlled by Gov.
Consumer Advocate office’s powers remain intact, but with the elimination of the Executive Director.
Assessment Funding in question.