Find answers here to several of the most common questions about us.
The current administration, under Governor Jenniffer González Colón and primarily through the Public-Private Partnerships Authority (P3A) and its executive director, has publicly alleged that we have breached the clauses of the Operation and Maintenance Agreement (OMA), which governs our duties and responsibilities regarding Puerto Rico’s electrical transmission and distribution network.
The Government of Puerto Rico’s allegations of a supposed breach of contract on our part are frivolous and completely without merit. Furthermore, they are part of a pattern of actions that the current administration has carried out in recent months for political reasons in its attempt to “cancel” our contract to fulfill a campaign promise.
The lawsuit filed by the Government of Puerto Rico in court to “remove LUMA” contains no allegation of breach of contract. Instead, the Government’s lawsuit seeks to annul the extension of the Supplemental OMA, arguing that it is unlawful despite its approval by the P3A’s own Governing Board in late 2022.
Unlike public statements in the media, where misinformation rarely has real consequences, any accusation in court requires evidence. The Government of Puerto Rico was unable to formally accuse LUMA of breach of contract because there is simply no breach on our part.
It is the Government of Puerto Rico itself that has breached the contract, for example, by keeping operational and emergency accounts below the amounts agreed upon and required in the OMA. We remain committed to full transparency and have published all letters addressing these matters at
the following link.
In our countersuit, we maintain that the current administration has acted in bad faith and recklessly to the total detriment of the public interest and for political reasons.
The Government of Puerto Rico insists on using public funds to, with frivolous and utterly meritless arguments, act against its own decisions made in 2022 when it extended LUMA’s supplemental contract, a document presented by the government itself to LUMA as legal and valid. This is being done with the knowledge that canceling the agreement will cost the people at least $4.5 billion in damages and operational costs.
This senseless lawsuit not only places our 1.5 million customers at imminent risk but also calls into question the credibility of this administration before the global private sector.
For years, in good faith, we have attempted, on countless occasions, to engage in negotiations and alternative dispute resolution processes to provide the people of Puerto Rico with the best possible service in the management of the electrical power transmission and distribution system.
However, the Government of Puerto Rico took the initiative to sue and seek the annulment of the contract, alleging that it was a campaign promise. Given this situation, in which lawsuits were initially filed in the Puerto Rico state courts, we filed motions to transfer the case to the Federal District Court under the provisions of Title III of PROMESA (Puerto Rico Oversight, Management and Economic Stability Act). This triggered a process that ultimately led the federal court to return the case to the state courts.
Once the case returned to the state courts and litigation continued, we activated our defense against the Government’s claims, which includes our counterclaim.
As the Financial Oversight and Management Board and other parties involved in the Puerto Rico Electric Power Authority’s (PREPA) federal bankruptcy proceedings have warned, terminating the contract with LUMA would cause chaos in Puerto Rico and compromise the electrical system’s operations, in turn jeopardizing access to federal funds.
Furthermore, the damages caused by actions taken by the Government of Puerto Rico that would lead to the annulment of the contract extension are estimated at approximately $4.5 billion.
In short, we will pursue this legal battle with all available resources to defend our 1.5 million customers while remaining focused on transforming Puerto Rico’s electrical system.
Puerto Rico’s electrical transmission and distribution network is one of the oldest in the hemisphere, with decades of use and a history of insufficient maintenance that has contributed to its deterioration.
That said, and despite the challenges associated with the availability of funds and differences with the government of the day, we have made progress in the installation of state-of-the-art transformers and automated devices, in the replacement of critical infrastructure components, such as poles and public lighting, as well as in the restoration of transmission lines throughout the island to stabilize the system.
Additionally, after a lengthy manufacturing and acquisition process, critical custom-made equipment designed to improve the reliability of our electric service is finally arriving on the Island. This includes the largest transformer installed in Puerto Rico, which entered service in Sabana Llana, as well as dozens of additional transformers being installed in substations throughout the Island.
Preparing for hurricane season is a responsibility we assume year-round. Our focus is to continue strengthening our response capacity, coordination with state and federal agencies, and available tools to identify system damage and safely and efficiently restore service in emergencies.
As part of these efforts, we have completed the following:
Visit our Storm Center page to learn how we are preparing and how you can get ready as well.
Aside from the ongoing pole and light replacement work we carry out and vegetation clearing, in recent months, we have prioritized projects that address the transmission system, the backbone of the entire electrical system.
Among other work, we have restored more than 20 transmission lines, including five that were previously out of service since Hurricane María. This is in addition to the total of 336 transmission lines and structures that we have restored.
Additionally, we have installed and energized more than 20 new transformers in substations around Puerto Rico to reinforce the network at strategic points that support the electrical system of the entire Island.
In July, we completed the energization of three new power transformers at the Sabana Llana substations in Carolina, one of the largest in the system, as well as Crea in Bayamón and Mora in Isabela. Power transformers are essential components that help reduce the risk of power interruptions and voltage fluctuations in the grid.
We recognize that any change to the electricity bill directly affects our customers, and we understand the concern these discussions often generate.
In short, the Puerto Rico Energy Bureau’s (PREB) decision last April on the base rate makes permanent a temporary adjustment that was in effect while the rate case was under review. Since we began operating in 2021, no adjustment had been made to the base rate prior to the provisional adjustment and the recent rate decision.
By law, the PREB requires a rate review every three years to ensure that the electrical system has the necessary funds to operate reliably and safely. However, prior to this latest rate review, the last one was conducted in 2017, and before that, in 1989. This means that, for decades, rates were not updated to reflect the system’s actual needs
Any rate increases customers have experienced are primarily related to fuel and energy purchases, which account for approximately 75% of their bills. We cannot modify the rates or charges that have been billed. Only the PREB determines what is included in customers’ monthly bills.
Click here to better understand your bill and how costs are calculated.
While federal funds have been key to advancing reconstruction projects, they are directed toward specific initiatives. To address daily system maintenance, replace aging infrastructure, and respond- to unforeseen events, additional sources of investment are required, such as those contemplated in the process with the PREB.
Following the recent base rate adjustment by the PREB, approximately 18% of residential customers’ monthly electricity bills are allocated to cover our operating and administrative expenses.
The remainder of our budget is financed through a combination of federal and local funds and is defined in our Operation and Maintenance Agreement (OMA) with the Puerto Rico Public-Private Partnerships Authority (AAPP).
Major electrical grid reconstruction projects are primarily funded through federal grants awarded by the Federal Emergency Management Agency (FEMA) and the U.S. Department of Energy (DOE).
No, they have been inconsistent. The funds LUMA has received from Puerto Rico Electric Power Authority (PREPA) do not cover all the costs necessary to operate Puerto Rico’s electrical system. The budget approved by the Puerto Rico Energy Bureau (PREB) requires more funding than PREPA provides. These are the facts:
This funding is essential to ensure that we provide the people of Puerto Rico with the electric system they need and deserve.
In Puerto Rico, energy management is divided among the following entities:
The Puerto Rico Department of Consumer Affairs (DACO) filed a lawsuit in July 2025 to challenge an exemption in the operation and maintenance contract that indemnifies us for liability arising from damage to customers’ appliances caused by power outages and/or voltage fluctuations.
As of June 2026, the Boston Circuit Court of Appeals will rule on the case after requesting a stay of the lawsuit under Title III of PROMESA (Puerto Rico Oversight, Management and Economic Stability Act).
We understand and empathize with our customers’ frustration, but we also maintain that DACO (Department of Consumer Affairs) must be transparent and inform them that this legal action would result in an additional increase in their electricity service costs.
While we continue to improve the electrical system to minimize these events, we recommend that customers use surge protectors to prevent these power outages.
Click here to learn more about the important role surge protectors play in protecting your home’s electronic devices and appliances.