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LUMA Assures Cost Overruns Will Not Impact Rates

By on February 24, 2022

Attributes $28M Operational Deficit in 2Q to ‘Prepa Legacy Issues

Despite the challenges faced by LUMA Energy LLC in operating the Puerto Rico Electric Power Authority’s (Prepa) transmission and distribution (T&D) system, as evidenced by Monday’s outage affecting 700,000 utility customers, the U.S.-Canadian consortium denied that a $28 million operating deficit accumulated during the last quarter will have an impact on electricity rates.

The consortium, which took over T&D operations last June 1, reported a deficit in operational expenses of $30.5 million between Oct. 1 and Dec. 31—the second quarter of the fiscal year 2022. The final deficit amount was $27.9 million, after a $2.6 million reduction resulting from a 2 percent reserve for excess expenditures.

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