Record Power Rate Hike
Puerto Rico Approves Record Electricity Rate Increase Following Grid Outages and Fuel Disputes
Anonymous
Puerto Rico’s Energy Bureau approved a record electricity rate of 33.86 cents per kilowatt-hour for October through December, raising a typical household’s monthly bill by about 18%, from $229 to $271. The rate is nearly twice the U.S. mainland average and adds pressure to an island already facing high living costs and widespread poverty. Luma Energy says the increase reflects higher fuel and operating costs, including summer demand and reliance on more expensive fuels when power plants fall short; the regulator approved a smaller increase than requested, deferring more than $17.6 million in disputed natural-gas supply costs. The hike comes amid recurring outages and a deteriorating grid, including a recent substation fire that cut power to more than 200,000 customers.
Key Points
1
The rate rose from 28.57 cents per kWh in July–September; Luma had sought a 6.07-cent increase that would have brought the rate to 34.64 cents per kWh, compared with the approved rate of 33.86 cents.
2
The Energy Bureau said recovering fuel expenses promptly was necessary to maintain cash flow for fuel purchases and keep generation and operations going.
3
A dispute between natural-gas supplier New Fortress Energy and San Juan Bay pilots over a tanker’s entry has blocked a gas shipment, forcing north-coast plants to use diesel and increasing fuel costs; the dispute is in court.
4
The Energy Bureau is also investigating $19 million paid for natural gas in quantities reportedly exceeding the generation company Genera’s needs or capacity.
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