The hearings allowed the electric system entities to evaluate the investments needed to strengthen service, maximize federal funding, and advance grid modernization for the benefit of customers in Puerto Rico.
December 19, 2025 – San Juan, Puerto Rico – Following the conclusion of the evidentiary hearings in the rate review process led by the Puerto Rico Energy Bureau (PREB), in which LUMA, Genera PR, and the Puerto Rico Electric Power Authority (PREPA) participated, weeks of technical, transparent, and rigorous analysis concluded regarding the state of the electric system and the investments necessary to strengthen the quality, reliability, and resilience of the service provided to customers in Puerto Rico.
LUMA reiterates that, at the request of the PREB, it presented two investment plans, an optimal plan and a constrained plan, to define the levels of financing required to strengthen system reliability and resilience, ensuring that every cent paid by customers for the transmission and distribution portion of their bill is reinvested directly into the electric grid.
During the hearings, multiple topics with direct impact on customers and system operations were addressed, including the condition of transmission and distribution infrastructure, execution of operational work, emergency response, integration of new technologies, and the efficient use of federal funds, all key elements to improving service stability.
“This rate review process is essential to evaluate, with transparency and a sound technical basis, which investments are necessary to address long-standing system deficiencies and protect service for customers over the long term,” said Alejandro Figueroa, LUMA’s Chief Regulatory Officer. “Our focus has been on clearly explaining how these investments are identified and prioritized, and how available resources are used responsibly, always under the oversight of the Energy Bureau.”
In this analysis, priority was given to the review of system operations, the maximization of federal funds, and initiatives to improve service reliability, with the goal of reducing outages, strengthening response to events, and increasing the resilience of the electric grid.
From an operational standpoint, the condition of critical equipment that has exceeded its useful life after decades of deferred maintenance was evaluated, along with the criteria used to prioritize work and balance preventive and corrective maintenance, with the aim of minimizing impacts on the service customers receive.
In addition, key initiatives aimed at improving system reliability were discussed, including vegetation management, substation modernization, grid automation, the evaluation and replacement of smart meters, and improvements to public lighting, all focused on delivering more stable and consistent service to communities.
Another key component was the use of federal funds, particularly those related to the Federal Emergency Management Agency (FEMA). During the hearings, the complexity of eligibility, review, and reimbursement processes was explained, as well as the need, in certain cases, to use nonfederal funds to address urgent work that cannot wait for final determinations without compromising system stability. It was reiterated that FEMA is the entity that determines the final eligibility of projects and that ongoing efforts are in place to maximize every available federal dollar and reduce future pressure on rates.
Throughout the process, LUMA reiterated that it operates under a strictly regulated and overseen model and does not financially benefit from rate adjustments, as its compensation is fixed under the Operation and Maintenance Agreement (OMA). Every dollar approved for transmission and distribution is reinvested directly in operating, maintaining, and modernizing the electric grid that serves nearly 1.5 million customers in Puerto Rico.
With the conclusion of the hearings, the PREB will evaluate the complete record of the case, and it is expected to issue its determination during the first quarter of 2026. This decision will define the investment and financing framework that will guide improvements to the electric system in the short and medium term.
Juan Saca, LUMA’s President and Chief Executive Officer, emphasized that LUMA customers are at the center of every decision made by the company responsible for operating and maintaining the electric system. “We will continue to execute every approved investment responsibly and transparently, focused on continued progress and with a single objective: to deliver a more reliable, resilient electric service that is prepared for Puerto Rico’s energy future.”
“Within the current rate structure, nearly 80 percent of a customer’s bill is tied to system components that are not under LUMA’s operation, such as fuel, subsidies, and other costs. This underscores the importance of continuing to clearly communicate how costs are distributed and how each investment seeks to maximize value for customers,” the executive added.
LUMA will continue to work closely with the PREB and other electric system entities, reaffirming its commitment to better serve customers and to responsibly advance the transformation of Puerto Rico’s electric system.
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 4,000 employees is focused on safely delivering an exceptional customer service experience to its nearly 1.5 million customers.
