The private operator managing Puerto Rico’s power grid announced on Monday that it is deferring $65 million in maintenance and improvement projects on the island due to budget limitations. Some repairs will be delayed for at least a year, exacerbating the grid’s existing problems and prompting significant public backlash.
Among the postponed projects are the maintenance of over 100,000 light posts, fire mitigation efforts, and repairs to underground circuits, among other enhancements.
Mario Hurtado, head of regulatory affairs for Luma Energy, informed The Associated Press on Monday that the postponed projects, which he hopes to resume next year, increase the likelihood of more power outages across the island.
“There is always a risk that we will see more failures in public lighting,” Hurtado said.
At a budget hearing on Friday, Hurtado explained that Luma Energy prioritized other tasks based on “professional judgment,” considering them calculated risks. He noted that the absence of fire mitigation efforts places the grid at risk, particularly as Puerto Rico faces higher temperatures that heighten the chances of wildfires disrupting power lines.
“We make decisions based on what resources we have and our objectives,” Hurtado stated on Friday. “While this involves a risk, it’s an acceptable one.”
Luma’s budget proposal to Puerto Rico’s Energy Bureau includes $1.3 billion for the entire electrical sector. Of this, 65% is allocated to Luma, which handles transmission and distribution, 32% to Genera PR, which operates and maintains the grid, and 3% to the Puerto Rico Electric Power Authority.
The budget is designed to enhance Luma’s customer service, employee safety, and renewable energy projects.
Luma’s decision to defer millions in projects amid ongoing power outages has sparked outrage.
“It is unacceptable that Luma Energy can unilaterally decide to halt essential tasks,” Jesús Manuel Ortiz, a House of Representatives member and gubernatorial candidate, said in a statement on Monday. “It is clear that Luma continues to fall short in its responsibilities, with no accountability from the Government of Puerto Rico.”
The company attributes the delays to a holdup in fund disbursement from the Federal Emergency Management Agency. Hurtado mentioned that Luma has submitted around 400 projects for approval to upgrade the energy grid, with approximately 100 approved so far.
The budget hearing occurs as the island, home to 3.2 million people, grapples with frequent power outages more than six years after Hurricane Maria devastated Puerto Rico as a Category 4 storm. Recovery efforts have been hampered by a combination of storms, earthquakes, and underinvestment.
In mid-June, a massive blackout left over 340,000 customers in San Juan and nearby cities without power during a heatwave. Central and southern Puerto Rican towns are still awaiting full power restoration after a transformer collapsed earlier this month. Over the weekend, Luma transported a transformer by boat from San Juan to Ponce and then to the nearby town of Santa Isabel.
Governor Pedro Pierluisi has mobilized the National Guard to assist with the energy crisis and has ordered an investigation into the June 13 blackout. The Energy Bureau is also investigating and has instructed Luma and Genera PR to submit a plan to stabilize the island’s electrical network.
