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FOMB Determined to Get Prepa RSA Confirmed

By on January 27, 2022

Controversial Plan Would Compound Electricity Prices

After U.S. District Judge Laura Taylor Swain finally approved last week the amended plan of adjustment (POA), settling the bulk of Puerto Rico’s public debt, the commonwealth’s Financial Oversight and Management Board (FOMB) will shift its focus on obtaining local legislation that would allow confirmation of the controversial Puerto Rico Electric Power Authority (Prepa) restructuring support agreement (RSA) by year’s end.

On top of continuous electricity rate hikes due to energy costs, proposed surcharges in the RSA to cover the public utility’s $13.9 billion in legacy debt and pension liabilities would likely push electricity costs to well over 30 cents per kilowatt-hour (kWh), which would make the island one of the jurisdictions with the costliest power.

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