Prepa Announces Provisional Rate Hike Goes into Effect Aug. 1
SAN JUAN – As required by the Puerto Rico Energy Commission, the Electric Power Authority announced Sunday that it is imposing a provisional rate hike effective Aug. 1. The commission approved the rates on June 24.
“The approval of a provisional rate allows PREPA to generate additional income needed to provide cash flow to operate while meeting its short-term obligations, before the petition for a new permanent rate is reviewed and approved by the Commission. The current economic circumstances of PREPA support the need for an immediate mechanism to address the problem of cash flow during the evaluation, and prior to the approval of the permanent rate. The Commission determined that PREPA has complied with the requirements of Regulation 8720 – Regulation on Rate Filing Requirement for the Puerto Rico Electric Power Authority, and it has demonstrated and justified the need to implement a provisional rate,” the utility said in a public notice.
The commission approved a uniform increase for all customer classes in the amount needed to produce $222,256,790 in revenue. Therefore, the commission approved a uniform increase of 1.299 cents per kilowatt-hour (kWh), which will be added to the existing base rate of energy consumption. This provisional increase does not modify or affect the formulas to recover the cost of fuel and purchased power. “Regarding the customers under the Fixed Rate for Public Housing, which pay a fixed charge for the applicable block consumption, the provisional increase will only apply to consumption in excess of that block. In the case of net metering customers, the provisional rate increase shall apply only on their net consumption,” the power company said.