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Puerto Rico utility trustee seeks to intervene in Energy Commission suit against fiscal board

By on March 20, 2018

SAN JUAN – The Puerto Rico Electric Power Authority’s (Prepa) Trustee, U.S. Bank National Association, has sought to intervene in the federal court lawsuit the Puerto Rico Energy Commission (PREC) filed against the island’s Financial Oversight and Management Board to enforce its jurisdiction over the power utility.

The petition, filed Monday, is expected to obtain approval since the trustee’s request already has the consent of the fiscal board and PREC. The trustee said it wants to join its constituent Prepa bondholders and bond insurers as parties in support of PREC’s motion for a preliminary injunction.

On March 4, PREC sued to prevent the fiscal board and Prepa from acting against the energy regulator’s orders and directives. The commission also said the fiscal board was seeking to certify a fiscal plan with provisions that contravene PREC’s regulatory authority and orders.

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The trustee said it acted “on information and belief the revised PREPA fiscal plan, the final version of which has not been made available to the Trustee, will include provisions contrary to the interests of the Trustee and Bondholders.”

The latest version of the fiscal plan, issued Jan. 24, includes having a debt-adjustment plan issued by 2019 and contains a list of proposed projects, as well as rate provisions that are not in line with PREC recommendations.

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