Prepa Extends Contract with AlixPartners
SAN JUAN – The Puerto Rico Electric Power Authority (Prepa) has announced that it has extended its contract with AlixPartners through August 15, 2016, as the utility seeks to implement its ongoing “comprehensive financial restructuring and operational transformation,” the published announcement reads.
As part of the contract extension agreement, Lisa Donahue, the utility’s chief restructuring adviser, and her team “will continue to work on implementing the Restructuring Support Agreements (RSA) including Prepa’s operational transformation,” the release adds.
The extension agreement includes $9,105,000 in fees, which will enable AlixPartners to provide specialized guidance for “upcoming initiatives such as the rate case, debt exchange offer, governance reforms, and continued operational improvements contemplated as part of Prepa’s transformation,” it further says.
This extension of the AlixPartners contract increases the value of the contract to $36,864,000. According to the utility, to date, it has obtained approximately $170 million in recurring annual savings and $155 million in one-time cash savings from these improvements.
“AlixPartners has been a key advisor for us, and this extension enables PREPA to continue implementing critical initiatives without interruption”, said Harry Rodríguez, chairman of Prepa’s governing board. “To date, we have identified and implemented millions of dollars in cost savings and found new ways to enhance efficiency, improve operations, and facilitate future investments in our infrastructure. The work of Lisa Donahue, her team and our employees is helping to transform PREPA.”
Prepa says its management is working diligently with AlixPartners on several initiatives that will “provide cost savings, operational efficiencies, improved customer service and a safe workplace for our employees.”