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NPP Rep. blames García Padilla, Donahue for electricity rate hike

By on December 4, 2016

By Gabriel Orlando Santos Ortega

SAN JUAN — New Progressive Party (NPP) Representative-elect Maricarmen Más claimed Sunday that Gov. Alejandro García Padilla’s administration will leave behind a rate hike for electricity services as of January.

The Puerto Rico Electric Power Authority (PREPA) logo is displayed in San Juan, Puerto Rico, on Friday, April 29, 2016. The indebted Caribbean island, home to 3.5 million U.S. citizens, has juggled dwindling resources from one hand to another for months now, to keep creditors at bay. The crisis is set to tip into a new phase this weekend when $422 million of payments are due and, as things stand, unlikely to be made in full -- threatening the biggest default yet. (Erika Rodriguez/Bloomberg via Getty Images)

The Puerto Rico Electric Power Authority (PREPA) logo is displayed in San Juan, Puerto Rico, on Friday, April 29, 2016. The indebted Caribbean island, home to 3.5 million U.S. citizens, has juggled dwindling resources from one hand to another to keep creditors at bay. (Erika Rodriguez/Bloomberg via Getty Images)

The representative for District 19 of Mayagüez and San Germán blamed Puerto Rico Electric Power Authority (Prepa) Director Javier Quintana and the agency’s restructuring officer, Lisa Donahue, for the increase.

“Lisa Donahue just presented her Prepa exit plan and the public corporation’s liquidity problems haven’t been solved. She earned $46.3 million in contracts and she is leaving, leaving Puerto Ricans with more increases in their bills, and the Authority with an unprecedented liquidity problem,” denounced Más via written declarations.

In the meantime, Más claimed that in these moments, Prepa will depend on an increase of 1.299 cents per Kilowatt-hour, which will begin in January 11 and represents a $3 billion annual income, to be able to fulfill obligations. Meanwhile, bond emission or exchange to restructure the $9 billion debt isn’t being attended, as Quintana himself informed.

Read more: Donahue says Prepa won’t use Promesa to get better deal from bondholders

Therefore, the incoming NPP legislator urged Prepa’s director to publish Donahue’s report. This plan must contain an evaluation of the official’s performance during the past 26 months, and detail what is yet to be done in the public agency.

“Without a doubt, this rate increase will be the little Christmas present from Alejandro García Padilla’s administration,” she concluded.

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