Thursday, August 13, 2020

Industry Consortium to Sue Prepa Due to Rate Hike

By on August 17, 2016

SAN JUAN—Eight leading Puerto Rico business and industry organizations will announce at 11 a.m. EDT Thursday (August 18, 2016) the filing of a major lawsuit to block no-limit (“blank check”) rate increases as part of the controversial Puerto Rico Electric Power Authority (Prepa) debt restructuring scheme. U.S. groups are also joining in support of the litigation effort.

Puerto Rico Electric Power Authority headquarters in Santurce.

Puerto Rico Electric Power Authority headquarters in Santurce.

The industry groups are the  Institute for Competitiveness and Economic Sustainability of Puerto Rico, the Puerto Rico Manufacturers Association, the United Retailers or “Centro Unido de Detallistas,” the Puerto Rico Products Association,  the Chamber of Marketing, Industry and Food Distribution, Puerto Rico Hospitals Association, the Puerto Rico Hotel & Tourism Association, and the Association of Contractors and Consultants of Renewable Energy.

In order to satisfy the terms of the widely criticized Prepa debt deal, the Puerto Rico Energy Commission is seeking to advance “one of the biggest surcharges to renewable and distributed energy on US history to be imposed on a statewide or territory-wide basis,” a statement by the consortium reads.

The Institute for Energy Economics and Financial Analysis (IEEFA) recently issued a report, previously featured in Caribbean Business, concluding that the Prepa refinancing scheme is excessively expensive, and excludes renewable energy from future investment in Puerto Rico. The new energy plan offered by Prepa is not transparent and will not achieve its goal of bringing financial stability to Prepa, according to IEEFA and the industry group consortium.

 

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