Daily Black Immigrant News
Former Secretary of the Department of Labor and Human Resources Carlos Saavedra reported that, although it is too early to conclude, there may be an increase in the electricity bill after the agreement is reached to work on the bankruptcy process of the Electric Power Authority (PREPA ). ) Ends. ).
“It’s possible. We don’t know because, of course, the matter is confidential. There’s no deal, so we can’t even talk about a deal, but what’s being negotiated in New York this week, well, we don’t know which ones be the conditions, but there is a possibility that there will be an increase,” said Saavedra.
The Advocate reported that last week the judges in New York working on the mediation process requested an extension of the deadline for reaching an agreement until this Friday, September 16 with the possibility of an extension until September 30. However, this week representatives of PREPA, the government and other interested parties are in the aforementioned state to reach an agreement. However, Saavedra reported that it is not feasible for the process to be completed by November 30, the day on which LUMA Energy’s supplementary contract also expires.
“It is extremely difficult for me to have PREPA’s (Puerto Rico Electric Power Authority) bankruptcy completed by November 30,” the former official said, as the settlement process includes incorporation into a new regulatory plan that will presented and approved. Judge Laura Taylor Swain, whose involved parties can challenge, so it won’t be a quick process.
He also explained that if an agreement is not reached, the parties must explain to the federal judge why the case should not be dismissed and why the other issues should not be resolved.
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Meanwhile, LUMA Energy mismanages the system
For his part, the representative of the consumer before the Governing Board of PREPA, engineer Tomás Torres Placa, warned of the mismanagement of LUMA Energy, which would not go away quickly with the arrival of November 30, after the government decided not to continue the contract , you will have to start the transition process and you will have to pay penalties if you decide not to renew it.
After several statements by Governor Pedro Pierluisi that the privatization company will have to pay out of pocket for the damage caused by the power outages, the engineer clarified that in fact these costs should be borne by the population.
Also, he denounced that, according to a report from the Bureau of Energy (BE), LUMA Energy currently has a $20 million overdraft in its annual budget.
“This report shows that LUMA has exceeded the annual budget by 20 million dollars in terms of operating expenses and that, on projects with federal funds, that is the money that comes from FEMA, it has used only 9% of a scared budget. one hundred and several million”, said Torres Placa.
The engineer concluded that it is necessary to make changes in the management of the privatization company and in the contract itself, which, he said, is exclusive to PREPA.
Earlier, the House of Representatives summoned the Authority for Public-Private Partnerships (AAPP), NE and PREPA to present, review and certify the compliance metrics provided by the privatizer.
Waiting for extension.
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