Puerto Rico Gov. Pedro Pierluisi is suggesting amending the privatization contract for the Puerto Rico Electric Power Authority transmission and distribution system.
On Wednesday Pierluisi announced the formation of an oversight committee to review and make recommendations for changes to the contract with LUMA Energy.
In June the Puerto Rico Public-Private Partnership Authority signed the contract with LUMA, with the approval of then-Gov. Wanda Vázquez.
Pierluisi said the committee should look into making sure the contract will not lead to an increase in electrical rates, that the contract not be used to dismiss PREPA employees or to reduce their benefits, that it will ensure continued full contributions to the employee retirement system, that it bars conflicts of interest in the awarding of contracts, and that it assures the improvement of energy service.
“I am in favor of the energy transformation and of Puerto Rico having a resilient and reliable electrical system and at the same time we have to safeguard the labor rights of our public servants and make sure that the energy service improves and its cost is fair and reasonable for all.”
LUMA Energy did not immediately respond to a request for a comment.
As of May the authority had $9.89 billion in debt outstanding, according to Moody’s Investor’s Service. There have been discussions about restructuring the debt since summer 2014. The Puerto Rico Oversight Board is considering whether to go forward with an already announced debt deal.
