San Juan, Puerto Rico, October 23, 2025 – LUMA today filed a motion before the Federal Court under Title III, requesting that the Puerto Rico Electric Power Authority (PREPA) transfer the funds needed to pay overdue claims from suppliers for services provided to Puerto Rico’s electric transmission and distribution system.
Following a consistent history of PREPA’s underfunding of the service accounts that are used to operate and maintain the system, more than $202 million is now owed to companies that have provided services to support grid stabilization efforts. As a result, LUMA had no choice but to take action to ensure these essential vendors, many of them small and medium-sized local businesses, are paid for what they are owed. The inability to pay vendors is causing them to halt or deny services that help LUMA provide its customers with safe, reliable and resilient electrical service.
“As a Puerto Rican company, LUMA takes pride in contracting with hundreds of businesses who, like us, call the island home. These vendors provide vital services that support grid stabilization and vegetation management work, and many are Puerto Rico-based small and medium-sized businesses. They have been put in an unfair situation brought about by PREPA’s reluctance to fund LUMA’s operating and management account. It is not fair to expect them to do the work and then not receive payment.” – Juan Saca, President of LUMA.
These businesses, which often rely on contracts that support transmission and distribution operations, employ thousands of people across the island; PREPA’s fiscal mismanagement is directly affecting their ability to provide for their families and employees. “The people and businesses of Puerto Rico deserve better, and we are committed to ensuring they get the payments they deserve and avoid further delays in projects that provide customers with the level of service they are paying for and deserve,” said Saca.
On average, PREPA has underfunded system operations by 70% between July 2024 and June 2025 and has underfunded electrical services in Puerto Rico by $800 million since LUMA took over operations in 2021. This is not a sustainable model and is adversely impacting our ability to perform the vital work necessary to stabilize the grid.
LUMA remains committed to working transparently with the government, PREPA, and industry partners, particularly during this 90-day period, while continuing to advocate for our customers, employees and the vendors carrying out this mission-critical work. Maintaining a constructive dialogue that ensures funding for the island’s grid operations is essential to effectively serve the people of Puerto Rico. This is an integral part of our promise to stabilize the island’s electrical grid, which was left in a fragile and dilapidated state following decades of underfunding and mismanagement.
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.
