The Puerto Rico Electric Power Authority's financial performance is missing targets, according to its recently posted figures through March.
From July 2013 through March the change in net position of PREPA was 60% worse than expected. It had budgeted a negative $120.5 million change in net position. Instead it got a $192.6 million change. Revenues for the fiscal year so far have come in 4.1% better than budgeted. However, expenses have come in 6.3% worse than expected.
PREPA's revenue bonds are rated Ba2 by Moody's Investors Service, BBB by Standard & Poor's, BB-plus by Fitch Ratings. As of this winter it had $8.5 billion in outstanding revenue bonds plus $750 million in operational lines of credit and other loans and subordinated debt.
By the standards of the United States mainland, PREPA has high electrical rates. Puerto Rico's government and PREPA are hoping to lower the rates to help spur its economy.
PREPA had $25.9 million in contributed capital through the end of March, compared to a budgeted $18.14 million in contributed capital. Contributed capital improves the net position.
March's change in net position was worse than budgeted. PREPA had a negative $30.5 million change in net position, compared to an anticipated negative $14.4 million change. Again revenues were better than expected, offset by expenses that exceeded projections by even more.
