Puerto Rico

IEEFA Research

IEEFA Report: Debt Restructuring Deal for Puerto Rico Power Authority Will Not Restore Agency to Financial Health


Flaws Will Result in High Electricity Rates, Burden an Already Ailing Economy, and Prevent the Development of Renewables

CLEVELAND, Aug. 4, 2016 (IEEFA.org) — The Institute for Energy Economics and Financial Analysis published a report today warning of serious flaws in a debt restructuring deal for the Puerto Rico Electric Power Authority (PREPA). The analysis, by IEEFA’s director of finance, Tom Sanzillo, and Cathy Kunkel, an IEEFA energy analyst, concludes that the restructuring […]

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IEEFA Questions PREPA’s ‘Misguided’
 Electric Plan for Puerto Rico; Notes High Risks and Costs; Sees Perpetuation of Import Addiction


Call for Energy Independence in U.S. Commonwealth 


‘Extraordinarily Short Shrift to the Potential for Renewable-Energy Development and for Energy-Efficiency Improvements’ CLEVELAND, May 2, 2016 (IEEFA) — The Institute for Energy Economics and Financial Analysis has filed public comments recommending that the Puerto Rico Electric Commission reject the Puerto Rico Electric Power Authority’s plan to rebuild the island’s electricity system. The comments, which […]

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Coal Won’t Solve the Energy Poverty Problem

Times Have Changed; Old Electricity-Generation Models Don’t Work Anymore

Coal-fired electricity is no longer the economy builder its proponents say it is. Time was when coal in fact did contribute to growth in many economies, but times have changed. Today governments and private interests worldwide concede—even emphasize—the economic and environmental dysfunction of coal. We’ve just published an IEEFA Briefing Note (“Energy Poverty, Then and […]

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A U.S. Commonwealth Shortchanged in Its Utility Company’s Debt-Restructuring Deal

Puerto Rico Is Overlooking a Rare Opportunity to Seal More Favorable Terms and Pursue a Better Energy Policy

We’ve published a report today that shows how Puerto Rico is at risk of missing an important opportunity in its energy-development history and an important opportunity at a fair restructuring of the debt of its public power company. It’s the first independent assessment of a proposed deal between the Puerto Rico Power Authority (PREPA) and […]

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ESTUDIO DE IEEFA ENCUENTRA INADECUADA LA REESTRUCTURACIÓN DEL ADEUDO DE EMPRESA DE ENERGÍA PUERTORRIQUEÑA; VE OPORTUNIDADES PERDIDAS EN ENERGÍA EÓLICA, SOLAR Y EFICIENCIA ENERGÉTICA

EN ESPERA PARA DAR A CONOCER 11 A.M., JUEVES, 10 de SEPT.

SAN JUAN, Puerto Rico (10 de Sept. de 2015) — The Institute for Energy Economics y Financial Analysis dio a conocer hoy un informe concluyendo que la Autoridad de Energía Eléctrica de Puerto Rico (AEEPR) es demasiado generosa con tenedores de bonos en su propuesta reestructuración de su adeudo y corta de vista en sus […]

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More News and Commentary

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IEEFA Puerto Rico: Electric Company, Off the Mark on Its In-House Outlook, Is Spending Twice as Much on Fuel Than Projected

PREPA’s Low-Balling of Oil Prices Will Drive Power Rates Higher; FY 2017 Total May Exceed Estimate by $600 Million; Agency Forecast Ignored Professional Consensus

The Puerto Rico Electric Power Authority is seriously underestimating the price of oil in the fiscal-year budget it put into effect on July 1. The result is likely to be higher-than-predicted and increasingly unaffordable power rates for residents and businesses of Puerto Rico, an island commonwealth that gets most of its electricity from oil-fired generators. […]

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Puerto Rico’s Electric Utility Says It Cannot Improve

Gerardo E. Alvarado León for El Nuevo Dia: The Puerto Rico Electric Power Authority (PREPA) needed 129 pages, supplements included, to establish and try to justify that they cannot comply with the Modified Integrated Resource Plan (IRP) approved by the Puerto Rico Energy Commission (PREC), which details the projects they should carry out over the […]

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New Questions in Puerto Rico Over ‘Illegalities, Disclosures and Accounting Issues’ at Utility Company

Robert Slavin for The Bond Buyer: A Puerto Rico government commission report raised concerns over debt-service coverage, illegalities, disclosures and accounting issues regarding $673 million of bonds issued by the island’s power utility in 2013. Puerto Rico Commission for the Comprehensive Audit of the Public Credit raised concerns over the 2013 Puerto Rico Electric Power […]

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IEEFA Update: Puerto Rico Energy Commission, in Challenging Utility’s Backward-Looking Plan, Sets a Much Wiser Course

A Sound Policy Path to Energy and Economic Prosperity; Rush to Bail Out Bondholders Will Only Make Matters Worse

In blasting the Puerto Rico Electric Power Authority for failing to produce a reasonable long-term plan for the island’s electric system, the Puerto Rico Energy Commission last Friday did its public a vital service. The commission, in its final order to PREPA to get its ducks in much better order, outlined a far more sensible […]

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Piden a la Junta Fiscal Priorizar Situación de la AEE

From Noticel.com: El representante del Partido Nuevo Progresista (PNP),José Enrique “Quiquito” Meléndez, informó el lunes que tras los eventos que han trascendido sobre la operación de la Autoridad de Energía Eléctrica (AEE) en los últimos meses, solicitará a Representantes del Congreso de los Estados Unidos que le requiera a la Junta de Supervisión Fiscal Federal […]

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Legislador por el PNP Pide Cancelación Contractual de Lisa Donahue con AEE

El representante José Enrique “Quiquito” Meléndez, informó hoy que tras los eventos sobre la operación de la Autoridad de Energía Eléctrica (AEE) en los últimos meses, solicitará a miembros del Congreso, que le requiera a la Junta de Supervisión Fiscal Federal, dar prioridad a la situación dentro de la AEE. Entre los sucesos que han […]

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Puerto Rico Goes Dark

From the Associated Press: Much of Puerto Rico was without electricity Thursday following a fire at a power plant that set off a broader outage across the island’s aging utility grid, leaving most of the island’s 3.5 million people without service. Javier Quintana, executive director of the utility, said power was restored to more than […]

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Puerto Rico Redux: PREPA Should Go Back to the Drawing Board


After Agreeing to a Debt-Restructuring Deal that Benefits Consultants and Bondholders at the Expense of Ratepayers, Little Choice Now But to Start Over



Here’s a core tenant of any well-functioning electricity utility: Households and businesses in the service area of the utility must be able to afford the rates charged by the utility. When rates are too high,  damage of all sorts results. This is what’s happening today in Puerto Rico, where electricity rates exceed 16 cents per […]

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Puerto Rican Business Groups File Legal Challenge to Hike In Electric Rates Forced by PREPA Restructuring Deal

Widespread Opposition to “An Unnecessary and Direct Hit to Puerto Rico’s Already Struggling Economy”; Warning: “No-Limit” Rate Scheme Could “Unravel” Debt Restructuring Plan.

(SAN JUAN) — August 18, 2016 – Audio link to press conference  A group of nine leading Puerto Rico industry and business associations are joining in an unprecedented legal challenge to a Puerto Rico Energy Commission (PREC) move to impose the first in a series of unlimited, “blank check” rate increases under the controversial debt-restructuring agreement […]

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Puerto Rico Opts to Send Millions to Bondholders Instead of Investing in Affordable Renewables

Eric Wolf for Politico: The bond deal approved by the Puerto Rico Energy Commission for the island’s utility, the Puerto Rico Electric Power Authority, will only hold the territory back from a green future, according to a blog post Thursday from the Institute for Energy Economics and Financial Analysis, a think tank that pushes for […]

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