Puerto Rico Gov. Alejandro García Padilla signed a bill Tuesday setting new rules for Puerto Rico's electricity sector.
Among the goals of the new law are to lower electrical prices, promote renewable and clean burning sources of electricity, improve the sector's transparency, and augment service quality, according to a written statement from the governor's office.
Under the new law the price that the Puerto Rico Electric Power Authority will charge for electricity must reflect its cost.
Citizen awareness and participation in all electricity provision decisions will be promoted.
The law requires the authority to begin reviewing its rates within 180 days and complete the review within an additional six months.
The law sets up the State Energy Office of Public Policy to develop and update energy policy for the island. Among other things the office is expected to oversee a sharp reduction in energy consumption by the central government, public corporations and municipalities.
The law sets up an Energy Commission to regulate the electrical industry ,including PREPA. The commission will also monitor and occasionally investigate the authority.
Further, an Independent Office of Citizen Protection will be set up to educate, guide, and protect clients of PREPA and other parts of the industry.
In other electrical related developments, the Puerto Rico Department of Justice is investigating claims of irregularities in PREPA's pricing of electricity, according to multiple sources. This department is part of the commonwealth's government, not the United States government. Department agents raided PREPA's offices and removed information on Friday morning.
There are concerns that PREPA may have illegally priced electricity in recent years.
In another development, on Tuesday the Caribbean Business web site reported that the authority had only enough cash on hand to purchase a week's worth of oil for its power plants.
