Sunday, August 25, 2019

Oversight board certifies revised new fiscal plans for Puerto Rico power, water companies

By on August 1, 2018

SAN JUAN – The Financial Oversight and Management Board for Puerto Rico certified a revised new fiscal plan for the Puerto Rico Electric Power Authority (Prepa) and a revised new fiscal plan for the Puerto Rico Aqueduct and Sewer Authority (Prasa), both developed by the fiscal board, it said in a release Wednesday evening.

After determining that the governor’s proposed fiscal plans for the utilities “did not satisfy the [Puerto Rico Oversight, Management, and Economic Stability Act’s] requirements, it was “resolved” that it would certify its own plans for the public corporations, according to the board’s unanimous written consents certifying the documents.

The new plans supersede the ones previously certified by the board on April 19 and “incorporate the macroeconomic projections that are embedded in the Certified New Fiscal Plan for the Commonwealth,” the release added.

The board said it is initiating the “process of revising the Certified New Fiscal Plan for the Commonwealth—and, therefore, eventually those for UPR [University of Puerto Rico], HTA [Highways and Transportation Authority], PREPA, and PRASA as well—in order to incorporate material new information including, among other things, full FY2018 revenue actuals, revised federal disaster spending estimates, and an adjustment to the demographic projections contained in the Certified New Fiscal Plan for the Commonwealth.”

The board is established the following schedule “by which the Commonwealth and certain covered entities must develop and submit revised fiscal plans”:

  • August 17, 2018: Commonwealth, UPR, and HTA must submit revised fiscal plans to the Oversight Board pursuant to Section 201(c)(2)
  • August 29, 2018: Oversight Board will send a notice pursuant to Section 201(c)(3) stating whether the Oversight Board has determined, in its sole discretion, that the proposed fiscal plans for Commonwealth, UPR, and HTA satisfy the requirements of Section 201(b)(1)
  • September 7, 2018: Commonwealth, UPR, and HTA must submit revised fiscal plans to the Oversight Board pursuant to Section 201(d)(1)
  • September 21, 2018: Oversight Board expects to deliver a compliance certification pursuant to Section 201(e) for Commonwealth, UPR, and HTA
  • October 12, 2018: PREPA and PRASA must submit revised fiscal plans to the Oversight Board pursuant to Section 201(c)(2)
  • October 17, 2018: Oversight Board will send a notice pursuant to Section 201(c)(3) stating whether the Oversight Board has determined, in its sole discretion, that the proposed fiscal plans for PREPA and PRASA satisfy the requirements of Section 201(b)(1)
  • October 21, 2018: PREPA and PRASA must submit revised fiscal plans to the Oversight Board pursuant to Section 201(d)(1)
  • October 26, 2018: Oversight Board expects to deliver a compliance certification pursuant to Section 201(e) for PREPA and PRASA

See the new board-published documents:

(Screen capture of the Puerto Rico Electric Power Authority New Fiscal Plan, as certified by the Financial Oversight and Management Board for Puerto Rico, April 19, 2018)

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