Puerto Rico fiscal board will revise energy regulator’s budget
SAN JUAN – The Financial Oversight and Management Board (FOMB) will be taking a second look at the Puerto Rico Energy Commission’s (PREC) budget.
The decision was made after the energy regulator complained that its revenues were cut by 70%. The fiscal board limited PREC’s expenditures to $1.8 million, of which $1.6 million is for payroll and expenses and $207,000 for operational expenses.
PREC gets its budget from two sources. The first is a $5.8 million yearly allocation from Prepa and the second is from a fee charged to private power companies that does not exceed 0.25%, suggesting the allocated budget is in violation of PREC’s charter law.
“If not amended, the Consolidated Budget established by the FOMB, will end the independent, fact-based regulation of Puerto Rico’s electric industry,” the commissioners said in a letter to the fiscal board.
After reviewing the letter, the board agreed with PREC’s budget analysis.
By Aug. 20, the board said, the governor will submit a revised budget, which will be considered approved if it complies with the fiscal plan.