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Puerto Rico Electric Power Authority board fired

By on June 29, 2017

The Puerto Rico Electric Power Authority (Prepa) logo is displayed in San Juan, Puerto Rico, on Friday, April 29, 2016. (Erika Rodríguez/Bloomberg via Getty Images)

SAN JUAN — The Governing Board of the Puerto Rico Electric Power Authority (Prepa), including its three consumer representatives, was fired retroactively back to June 26, when the governor signed the law that overhauled the board.

“Prepa no longer has a board. On Monday we met but that meeting was not valid because they dismissed us retroactive to June 26,” Luis Santini Gaudier, one of the three consumer representatives, said. The board was informed through letters.

Former Prepa consumer representatives Luis Santini Gaudier and Carlos Gallisá (Cindy Burgos / CB)

The public corporation is now lacking a decision-making body at a time when the Financial Oversight and Management Board has refused to ratify the utility’s debt-restructuring agreement  (RSA) to overhaul its $9 billion debt.

The government said this week that it was continuing to negotiate with creditors, who announced Thursday, through bond insurer National Public Finance, that they had offered the government to extend the RSA until June 30 to prevent the utility from entering into a default July 1, when Prepa must pay $450 million. However, that offer has been rejected.

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