US EditionPuerto Rico Sues Luma in First Push to Cancel Contract with Private Power Company
Puerto Rico seeks to end Luma Energy's contract citing chronic outages, rising bills, and slow grid recovery despite nearly $11 billion in federal funds, officials said.
- Late Thursday, Puerto Rico's government sued Luma Energy to cancel its multimillion-dollar contract as the Energy Bureau holds fee increase hearings.
- Following last November's election promise, the government moved to legally challenge the Luma deals, including a supplemental agreement, with Governor Jenniffer González having pledged to oust Luma.
- Data show Luma has received nearly $5 billion and invested over $2.4 billion in federally funded projects, as the lawsuit was announced late Thursday, more than five years after the contract award.
- Officials say they are preparing a smooth transition if the contract is scrapped while Luma Energy explores legal options and defends progress, calling the lawsuit politically motivated.
- Ongoing outages have already forced small businesses to close, strained residents with health needs, and spooked potential investors in Puerto Rico's power sector.
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Governor Jenniffer González stated that LUMA Energy's warnings about potential blackouts, following the filing of lawsuits to nullify the contract, represent a risk to the country and will be part of the arguments the government will present…
According to the operator, the government is challenging its own actions by trying to invalidate the 2022 extension.
Associated Press News
Puerto Rico sues Luma in first push to cancel contract with private power company
Puerto Rico’s government has sued Luma Energy to cancel its multimillion-dollar contract. The lawsuit, announced late Thursday, comes as the U.S. territory battles chronic outages and rising power bills.
San Juan, Dec 11 (EFE).- The government of Puerto Rico filed a lawsuit this Thursday to cancel the contract of the company in charge of the transmission of electricity in the archipelago, LUMA Energy, a company that caused great discontent among the Puerto Rican population for its management. The Authority for Private Public Alliances and the Electric Energy Authority filed a legal appeal with the San Juan Court to request the cancellation of th…
It argues that an extension signed in 2022 granted the energy consortium indefinite control over the electricity system and violated public procurement laws.
Warning about the negative effects on their work to improve the electrical system and recognizing that “a lot remains to be done”, the LUMA Energy consortium reacted this Thursday to the government’s demand to start canceling its contract. “We are evaluating the establishment of the APP to explore our legal options, staying firm in our commitment to Puerto Rico’s energy transformation,” they said in a press release.
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