Cataño substation is the first of five substation infrastructure improvement projects expected for 2022 that will help transform the Puerto Rico electric grid.

San Juan, Puerto Rico, May 24, 2022 – Today, LUMA proudly announced the historic first Federal Emergency Management Agency’s (FEMA) funded modernization substation project for Puerto Rico. The approval of $24.4 million in federal funding will modernize the more than fifty-year-old Cataño substation. The Cataño substation project, which is scheduled to begin construction later this year, will increase reliability, improve resiliency, restore system functionality and will serve as a model for other substation improvement projects planned across the island over the coming months and years.

“This is a historic day for Puerto Rico and for our 1.5 million customers we proudly serve. FEMA’s approval of the Cataño Substation Improvement Project, and our announcement on May 9 of the first phase of our $1 billon Community Streetlight Initiative, are further proof that the transformation of Puerto Rico’s transmission and distribution infrastructure is truly moving forward after years of delays, under the prior operator. We thank FEMA for all their hard work, their partnership, and their commitment to Puerto Rico,” stated LUMA President and CEO Wayne Stensby.

In addition to Cataño, LUMA is also announcing that six additional substation improvement projects, representing more than $47 million in federal funds, are nearing their final FEMA approval. In total, these critical substation projects, which are slated for approval within the coming weeks, will help further LUMA’s goal of building a more reliable and resilient electric grid.

“With tens of millions of dollars in FEMA funding, the Cataño substation improvement project will begin the hard work of addressing years – if not decades – of electric system neglect. It will help modernize Puerto Rico’s transmission and distribution infrastructure and reduce the risk of outages that are the direct result of aged substations, like Cataño. While we know there is much more work to do, today marks another important step toward building a better energy future for all of Puerto Rico,” Stensby added.

Cataño Substation Improvement Project

Improvements to the substation, which directly serves more than 3,000 customers, including a local school as well as fire and police stations, will involve the following critical upgrades:

• Improved Reliability and Flexibility: The project will improve system reliability with the replacement of aged substation equipment that is at higher risk of failure, directly affecting customer service, while gaining operational flexibility with the addition of a modern and advanced 38 kV Gas Insulated Switchgear (GIS) and an improved bus topology aligned with industry best practices.

• Increased Resiliency:  The project will modernize and harden the substation to meet the latest standards to improve the reliability and resiliency of the existing grid while mitigating potential flooding concerns through the elevation of the substation. A new control building will be installed, and the many safety hazards of the current substation will be addressed.

• Enhanced Capacity and Capability: The project will improve electrical capacity to serve the existing and new forecasted electrical load demand of the surrounding area. It will also improve system capability to accommodate and incorporate future Distributed Energy Resources (DER), such as solar photovoltaic technology and energy storage. Enhanced capacity and capability will support the growth of clean energy transportation and energy efficiency in Puerto Rico and provide opportunities to incorporate advanced non-wires solutions within the distribution system.  

• Protecting the Environment: The project will incorporate modern drainage and run-off protection and mitigate flood risks through improved site elevation.  It will also incorporate transformer oil containment systems that will provide environmental protection against transformer leaks or failures. The existing oil circuit breakers will be replaced with modern, low maintenance GIS substation equipment.

• Increased Safety: The project will replace aged equipment with modern protection and control technology to meet the latest industry standards. The new substation will utilize the latest technology including new communication equipment, control, data acquisition, battery monitoring systems, and digital relays. This project will consider both construction and maintenance activities in order to provide an improved safety environment for personnel.

Since June 1, 2021, LUMA has initiated 182 projects with FEMA representing billions of dollars of new electric infrastructure investments. Additional FEMA funding approvals of other critical infrastructure projects are expected to be announced over the coming weeks and months. As part of its commitment to transparency, LUMA looks forward to communicating these additional FEMA-funded projects, once they are approved, and working with FEMA, the Puerto Rico Energy Bureau (PREB), and other agencies whose oversight and cooperation is vital.

About LUMA LUMA is a Puerto Rican company that, since June 1, 2021, operates and manages the electric power transmission and distribution system in Puerto Rico. LUMA is a company driven by a mission to transform the electrical transmission and distribution system to provide all Puerto Ricans with the reliable, resilient, cleaner and affordable electrical grid they deserve. As a customer-centric company, LUMA’s entire workforce of more than 3,000 employees is focused on safely delivering an exceptional customer service experience to its 1.5 million customers.