Viable transformation of an electric utility? The case of the Puerto Rico electric power authority

Abstract

There are similarities that Puerto Rico’s electric grid transformation has with other jurisdictions in terms of integration of distributed energy resources (DERs), net energy metering (NEM) and a diversified energy mix. However, it is important to first evaluate the impacts of Puerto Rico’s debt restructuring in view of federal emergency funds to be deployed. This paper aims to analyze expected impacts of the restructuring agreement and related plans on Puerto Rico’s economy and on its electric utility, PREPA. A restructuring agreement, and related plans, that considers a charge that starts at 2.768 cents per Kwh; that its length is 47 years; that comprises a nonbypassable and unavoidable charge, including on energy generated by consumers; and that excludes the regulator from the evaluation and implementation of debt restructuring charges, it is worth to analyze.