Puerto Rico Aqueduct and Sewer Authority, the only major public corporation on the island that's not on the cusp of running out of money, reported mixed results in the first quarter of fiscal 2016.
In July, August, and September the authority had net revenues after operating expenses and debt service of $25 million rather than the budgeted $14.2 million, according to PRASA's Accountability Report.
Revenues came in $18.9 million under budget. Expenses were $10.5 million lower than budget.
The drop in revenues was due to declines in consumption as water was rationed because of a drought.
In response to the income reduction, the authority cut its costs, primarily in the area of electricity, according to the report.
The authority reduced its debt service during the quarter to $83.4 million from the budgeted $102.7 million, a saving of $19.3 million. "The favorable variance of $19.3 million in debt service was the result of the rescheduling of future financial borrowings and reducing expenditures related to the capital improvement program," the authority said in its report.
In August PRASA was unsuccessful in selling a $750 million bond. It has not brought the bond to the market since then.
In the first quarter PRASA had $266 million in revenues, $157 million in operating expenses, and $83.4 million in debt payments.
As of August the authority had $4.95 billion in bonds and notes outstanding.
In contrast to PRASA, the island's other major public corporations – the Puerto Rico Electric Power Authority and Puerto Rico Highways and Transportation Authority – have either drawn on reserves, or plan to draw on them, to make debt payments. The commonwealth government awaits a U.S. Supreme Court decision on its bid to give the authorities the right to restructure their debts.
