225,000 PAGES OF DOCUMENTS, THAT COVER BROAD SCOPE OF MATERIALS RELATED TO FINANCIAL PERFORMANCE, TRANSMISSION AND DISTRIBUTION OPERATING EXPENDITURES, PAYMENTS RECEIVED FROM PREPA AND CUSTOMER SERVICE ORDERS, WERE DELIVERED TO THE LEGISLATURE OF PUERTO RICO.

San Juan, Puerto Rico, March 8, 2022 – Today, as part of its long-standing commitment to transparency regarding its operations and expenditures, LUMA provided Representative Luis Raúl Torres and the Committee of Economic Development, Planning, Telecommunications, Public-Private Partnerships and Energy of the Puerto Rico House of Representatives more than 225,000 pages of detailed reports, service orders and financial information. The documents provided to the legislature highlight the incredible work LUMA and its over 3,000 hard-working employees performed from July to the end of December of 2021 (the first two quarters of Fiscal Year (FY) 2022).

The over 225,000 pages of documents included copies of the company’s first two quarterly reports and regulatory filings submitted to the Puerto Rico Energy Bureau (PREB) and already publicly available, as well as financial invoices related to work performed and records related to transmission and distribution (T&D) operating expenditures, payments received from the Puerto Rico Electric Power Authority (PREPA) and customer service orders. The scope of documents provided reflect the company’s long-standing commitment to transparency, and highlight the significant actions taken by LUMA to restore, repair and rebuild Puerto Rico’s energy system after decades of neglect.

“All of our 3,000 LUMA workers are committed to being transparent. We believe we have a responsibility to the people we serve to share information related to our efforts to build a world class energy system in Puerto Rico. That is why critical members of the LUMA team worked nonstop over the last weekend to gather and provide over 225,000 pages of documents detailing the scope of work we’ve undertaken,” said LUMA President and CEO Wayne Stensby. “While it is important to know that LUMA supports and is already subject to independent audits of our expenditures by the Puerto Rico Public-Private Partnership Authority (P3 Authority), we are committed to responding to the legislature with details about the progress we are making and steps we are taking to build an energy system founded on operational excellence, prudent fiscal management, and a commitment to transparency.”

Tens of Thousands of Documents Reaffirm Commitment to NO Increase to Base Rate

Since the beginning of its operations on June 1, 2021, LUMA has submitted over 300 regulatory documents, provided over 235,000 pages of documents detailing every facet of its operations, taken part in 27 hearings and technical conferences with the Puerto Rico Energy Bureau (PREB) and has published two quarterly reports that outline the scope of the work performed and the investments and expenses made to build a safer, more reliable, and cleaner energy system for Puerto Rico. In the documents provided to the legislature today, LUMA reaffirmed statements made during its recent release of the Q2 report that the company does not expect or anticipate requesting an increase in the base rate established by the 2017 rate order of the PREB.

In the interests of full disclosure, and simultaneous with its formal filing, the company took the step of posting on social media images of the boxes of materials provided to the legislature. This public action was taken to ensure that all parties were aware that LUMA took the response seriously and fulfilled its obligation to deliver paper – not electronic copies – to the Legislature of Puerto Rico.

“Our 1.5 million customers have experienced years – if not decades – of operational and financial neglect and mismanagement of the electric system. While the hard-working men and women of LUMA are not responsible for the sins of the past, we are determined to do all we can to repair this lack of public trust. With respect to expenditures, we have made clear that we are on track to stay within the limits of the rate base while taking the necessary and immediate operational actions to improve the system and ensure our employees are properly trained and safe. While some may imply otherwise, let me be very clear: we do not anticipate or expect to request an increase to the base rate,” added Stensby.

A Commitment to Transparency and Budgetary Stability

Since LUMA assumed operations on June 1, 2021, the company has regularly demonstrated and reported on its efforts to manage operations effectively and efficiently. In fact, the company has provided detailed information on the steps it has taken to address legacy PREPA issues, prioritize worker safety, and stabilize the system, while managing expenditures in its quarterly reports submitted to the PREB and the P3 Authority.

As the submitted documents reiterate, and as was made clear in the Q1 and Q2 filings, currently, LUMA has not exceeded the approved budget for FY 2021-2022. In fact, the budgetary actions, and the reasoning behind them, was specifically outlined in the Q1 and Q2 reports:

• Q1 Quarterly Report: In November 2021, LUMA released its first quarterly report for the 2022 fiscal year. In this report, LUMA detailed its budget performance and explained how discoveries in the Front-End Transition period and upon commencement of operations affected spending. To stabilize the fragile energy system, LUMA spent more than anticipated in labor costs to train our labor force in overall job skills, with an emphasis on safety. LUMA’s proactive actions to upskill the workforce was necessary to keep our workers safe and avoid additional outage impacts to customers.

• Q2 Quarterly Report: In February 2022, LUMA released its second quarterly report for fiscal year 2022. This report found that as part of the company’s commitment to ensure it is meeting its energy and fiscal priorities, halfway into the fiscal year, LUMA spent 54% of its budget. As part of its commitment to operate efficiently, even as it rebuilds, restores, and transforms Puerto Rico’s energy system, LUMA does not expect or anticipate requesting any increase of the Base Customer Rate established by the Energy Bureau’s 2017 Rate Order.

Key Documents Provided by LUMA

LUMA has complied with all information requests from Representative Luis Raúl Torres and the Committee of Economic Development, Planning, Telecommunications, Public-Private Partnerships, and Energy of the Puerto Rico House of Representatives. The more than 225,000 pages of documentation provided by LUMA includes the items listed below:

• Submitted: Fiscal Year 2022 Quarter 1 report
• Submitted: Fiscal Year 2022 Quarter 2 report
• Submitted:Pre-LUMA System and Facilities Conditions Report
• Submitted: Complaint and Request for Temporary Restraining Order, Preliminary and Permanent Injunction and Request for Declaratory Judgment
• Submitted: 298 filings submitted with the PREB
• Submitted: Invoices for “T&D Pass-Through Expenditures” pursuant to the T&D OMA
• Submitted: Business documents that show the transfers made by PREPA to replenish the Operating Service Account
• Submitted: More than 144,000 pages of Customer Service Orders

LUMA remains committed to full transparency in its operations and fiscal performance and will continue to release reports to the public that demonstrate LUMA’s steady improvement of electric service to customers and utility operations.

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.