LUMA calls for collaboration to ensure PREPA transfers funds needed to stabilize the grid for Puerto Rico’s 1.5 million electric customers
San Juan, Puerto Rico – October 28, 2025 – LUMA’s CEO, Juan Saca, will outline the severity of the Puerto Rico Electric Power Authority’s (PREPA) chronic underfunding of the electric grid during today’s public hearing before the Puerto Rico House of Representatives. In the session presided by Rep. Víctor Parés, head of the House Government Committee, LUMA will focus on the island’s energy challenges, presenting clear facts and data demonstrating the negative impact of PREPA’s ongoing financial shortfalls of the funds needed for operations and maintenance aimed at stabilizing the electric grid.
Saca will highlight how PREPA withholding of the funds needed to comply with the PREB-approved budget and the amounts defined in the contract (OMA) severely limits LUMA’s ability to operate and strengthen Puerto Rico’s transmission and distribution system. Data presented will show that between July 2024 and June 2025, PREPA provided only about 30% of the funds approved for system operations, leaving a 70% shortfall. This pattern has created a cumulative funding gap totaling $800 million since LUMA assumed operations in 2021.
As part of its public testimony before the House Government Committee, LUMA will also present detailed evidence regarding the financial and operational challenges caused by PREPA’s sustained noncompliance with its contractual and budgetary obligations. LUMA’s presentation also documents that PREPA has failed to fund key service accounts, such as the Outage Event Reserve Account, which has remained unfunded since 2023, forcing LUMA to redirect over $225 million from operational budgets to cover emergency response costs. As a result, essential maintenance and modernization projects have been postponed or canceled, and suppliers have begun to halt services due to unpaid invoices exceeding $200 million.
“The current liquidity crisis is not due to a lack of revenue, but rather PREPA’s deliberate withholding of funds in violation of the T&D OMA and approved budgets,” said Juan Saca, President and CEO of LUMA. “PREPA’s ongoing underfunding is limiting our ability to move forward with critical work that directly benefits customers.
Saca added, “Despite these challenges, our teams remain committed to delivering reliable service and advancing the transformation of Puerto Rico’s electric grid. The people of Puerto Rico deserve a reliable and resilient electrical system, and to achieve that it requires transparency, stable funding, and genuine collaboration from all parties involved.”
The persistent shortfall caused by PREPA’s failure to transfer funds into the service accounts LUMA uses to operate the grid has delayed essential projects, constrained the purchase of critical materials and equipment, and created unpaid vendor balances impacting many small- and medium-sized Puerto Rican businesses that support grid operations. By withholding the cash that was budgeted and agreed to, PREPA’s failure to fully fund system operations is resulting in more frequent and longer outages for Puerto Rico’s 1.5 million electric customers. Even with these financial constraints, LUMA has continued to make measurable progress toward stabilizing Puerto Rico’s electrical grid. Since 2021, LUMA has:
- Cleared approximately 7,000 miles of vegetation;
- Installed more than 10,000 automated grid devices to reduce outages;
- Replaced more than 33,000 poles and modernized more than 180,000 streetlights; and
- Completed maintenance and repairs on all 300 substations around the island.
“LUMA’s employees are working every day to improve service for our customers around the island”, said Saca. “We will continue to do everything in our power to strengthen the grid, but stable funding and collaboration with the government and other state and federal stakeholders are essential to building the reliable energy future Puerto Ricans deserve.”
In the coming months, LUMA will continue advancing major improvement projects, such as the installation of the largest transformer in Puerto Rico’s history, directly benefiting more than 200,000 customers. Also included are the completion of upgrades at the Monacillos substation, restoring it to full operating capacity for the first time in over 40 years, and a new transformer will be energized at the Caguas substation.
In recent months, LUMA has completed high-impact projects that strengthen system redundancy and resilience, directly benefiting over 175,000 customers. Recent efforts included:
- Improved the Ceiba transmission line and planned upgrades at the Naguabo and Humacao substations;
- Reinforced infrastructure in Humacao and San Lorenzo, rebuilding transmission line 12,600;
- Replaced the fiber optic line between Vega Baja and Bayamón, impacting over 100,000 customers; and
- Completed key work at the Crea substation in Bayamón, along with the installation of a new transformer in Monacillos.
These accomplishments are a direct result of the dedication and tireless work of LUMA’s field crews, who continue to move the system forward with urgency and excellence, actively building a stronger, more reliable grid for Puerto Rico.
About LUMA
LUMA is a Puerto Rican company that, since June 1, 2021, has operated and managed the electric power transmission and distribution system in Puerto Rico. LUMA is driven by the mission to transform the transmission and distribution system to provide all Puerto Ricans with the reliable, resilient, clean, and affordable electric grid they deserve. As a customer-focused company, LUMA’s entire workforce of over 4,500 employees is committed to delivering an exceptional customer service experience to its 1.5 million customers.
