Saturday, July 4, 2020

Prepa reaches agreement with EcoEléctrica, Naturgy

By on June 22, 2020

SAN JUAN – The executive director of the Puerto Rico Electric Power Authority (PREPA), José Ortiz Vázquez, announced Monday the renegotiation and signing of the contract with EcoEléctrica and natural gas supplier Naturgy for a period of 12 years, representing savings of $1.3 billion for the corporation.

“These will translate, as had been anticipated, into savings in the invoice for electric service. It also facilitates the implementation of initiatives that strengthen Puerto Rico’s public energy policy, on its path to dependence on renewable energy sources,” Ortiz Vázquez said in a statement.

He explained that this new contract substantially reduces the fixed payment for the energy produced by EcoEléctrica by approximately $100 million annually, which will represent cost savings per kilowatt-hour on the electricity bill. The renegotiation, in turn, allows PREPA to complement electricity generation with renewable energy sources and will reduce the cost of natural gas used by units that run with this fuel.

Both the Financial Oversight and Management Board (FOMB) and the Puerto Rico Energy Bureau (PREB) and the Title III Court approved the renegotiation.

The EcoEléctrica natural gas plant, located in Peñuelas, is one of the most efficient power generators in Puerto Rico and began operations in 2000. It has the capacity to produce 527 megawatts. The plant has a terminal for the import of liquefied natural gas.

Ortiz Vázquez mentioned that “with this achievement, PREPA has reached the goal of ensuring long-term savings in the purchase of natural gas, in compliance with the Certified Fiscal Plan.”