During the rate review hearings, Juan Saca emphasizes that every dollar approved in the rate is allocated to improving the system’s reliability and modernization, in accordance with the OMA.
San Juan, PR – December 8, 2025 – As part of the rate review process led by the Puerto Rico Energy Bureau (PREB), Juan Saca, President and Chief Executive Officer of LUMA, delivered testimony reaffirming the company’s commitment to system reliability and to transparent, responsible investment for the benefit of all customers.
Saca emphasized that every dollar approved through the rate process is allocated to the recovery, stabilization, and modernization of the transmission and distribution (T&D) system, in accordance with the Operation and Maintenance Agreement (OMA). Under the current rate structure, nearly 80% of the cost on the bill corresponds to components of the system that are not operated by LUMA.
He also reiterated that LUMA does not receive additional income from rate increases, as its compensation is fixed and designed to ensure responsible decision-making that focuses on improving customer service.
“Our commitment is clear: every dollar related to rate adjustments is directly invested in strengthening Puerto Rico’s electric system. We operate under a model that promotes transparency, accountability, and a customer-first approach,” said Saca.
During his testimony, Saca also explained that LUMA’s operational model includes strict controls and independent processes that ensure the ethical and efficient use of funds, including:
- The use of a Third-Party Procurement Operator (3PPO) for significant procurement, ensuring competitive and neutral processes.
- Rigorous compliance policies that ensure decisions are free from undue influence.
- Rules that prohibit companies affiliated with LUMA’s owners from participating in generation projects in Puerto Rico, ensuring a clear separation between T&D operations and energy generation. This measure reinforces the integrity of the model and prevents any potential conflict of interest.
Since beginning operations, LUMA has allocated over $2.5 billion in T&D system modernization projects, including the replacement of critical infrastructure, enhancements to grid resilience, and the automation of electrical substations. This automation integrates digital technologies that monitor, control, and operate equipment remotely and in real-time, significantly reducing outage response times, improving operational efficiency, and enhancing system reliability.
This strategic and responsible investment approach was recently validated by an independent report from the technical firm EnerNex. The report warns that without continued investment, Puerto Rico’s electric system will continue to deteriorate at an alarming rate of up to 5% per year. In contrast, full implementation of the fiscal plan could improve reliability by nearly 50%.
In addition, the report highlights that over 95% of LUMA’s projected spending is focused on programs that directly strengthen the system’s reliability and resiliency, such as automation, substation and line reconstruction, and vegetation management. EnerNex, an engineering, consulting, and research firm specializing in solutions for the global electric power industry, was hired by the Fiscal Oversight and Management Board (FOMB) to conduct a thorough technical analysis of the investment plans submitted by LUMA and Genera as part of PREPA’s 2025 Fiscal Plan.
The report provides objective validation, based on best practices, of the urgency and effectiveness of the proposed investments to improve Puerto Rico’s electric system reliability. It also underscores that the current state of the grid would justify a declaration of a state of emergency in any other U.S. jurisdiction. This reinforces the urgency of continued investment in the grid.
Saca concluded by reaffirming that LUMA will continue to work closely with the PREB and comply with the provisions of the OMA, with the goal of strengthening the electric grid and delivering a more reliable, modern, and secure service to all customers in Puerto Rico.
“Our commitment is to continue collaborating with all key stakeholders in the energy system, including the government, regulators, communities, and the private sector, to achieve a more reliable, modern, and equitable electric system. Each of our employees is deeply committed to Puerto Rico and works every day with one purpose: to better serve our customers. We trust that the outcome of this rate review process will reflect what is fair, necessary, and right for the well-being of our customers and for Puerto Rico’s energy future,” the executive concluded.
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 service they deserve. As a customer-centric company, LUMA’s entire workforce of over 4,300 employees is focused on safely delivering an exceptional customer service experience to its nearly 1.5 million customers.
