Despite financial limitations, critical projects are moving forward and strengthening the stability of the system.
San Juan, Puerto Rico – January 28, 2026 – LUMA filed yesterday with the Puerto Rico Energy Bureau (PREB) a quarterly metrics report confirming that the lack of access to sufficient funds to maintain reserves and healthy cash flow for the operation and maintenance of the transmission and distribution (T&D) system continues to negatively impact electric service reliability. According to data provided by the system operator, these limitations have reduced the ability to carry out planned maintenance and essential preventive work needed to address the ongoing deterioration of equipment and infrastructure and to reduce the outages experienced by customers.
As a result of these limitations, a significant portion of operational efforts has had to be redirected to address failures and critical conditions caused by the continued deterioration of outdated equipment, affecting system stability and the service customers receive. This was reflected in a 16.2% increase in the System Average Interruption Duration Index (SAIDI) and a 3.3% increase in the System Average Interruption Frequency Index (SAIFI) during the second quarter of the current fiscal year.
According to LUMA officials, system stabilization efforts have continued to focus on substation upgrades and transmission line repairs, many of which had been out of service since Hurricane Maria in 2017, with the goal of reducing major risks and preventing large-scale outages.
Progress Made Despite Limitations
Even amid financial constraints, LUMA has continued to advance critical work to strengthen the stability of the electric system, including:
- Maintenance performed on an essential transformer at the Manatí substation, which has been in operation for nearly 50 years and benefits more than 100,000 customers.
- Installation of a new transformer at the Sabana Llana substation, an upgrade that benefits more than 700,000 customers across the island.
- Reconstruction and energization of three transmission lines that had been out of service since Hurricane Maria, adding system redundancy and benefiting more than 60,000 customers in different regions.
- Replacement of 8,600 distribution poles and components of 872 transmission structures as part of ongoing efforts to maintain system stability.
“These numbers represent the real experiences of thousands of customers across the island. During the first half of the current fiscal year, we have prioritized critical work to protect system stability and reduce major risks, while continuing to advocate for the resources needed to deliver the reliable service Puerto Rico deserves,” said Alejandro Figueroa, LUMA’s Chief Regulatory Officer. “Our focus has been on maximizing limited financial resources to complete transmission- and substation-level upgrades that stabilize the electric system and reduce the risk of large-scale outages like those experienced in the past,” added Figueroa, who also expressed concern over the more than $400 million shortfall in the emergency reserve account, which continues to grow.
Timely and Consistent Deposits of Operational Funds Are Needed
LUMA’s Vice President of Federal Funds, Engineer Doriel Pagán, emphasized that “failing to invest adequately in the system at this time could result in significantly higher costs in the future due to the accelerated deterioration of the electric infrastructure.” Pagán added that, even in a constrained financial environment, access to federal funds has enabled LUMA to remain focused on meeting key commitments and advancing the approval of 45 projects over the past six months. Currently, LUMA has 233 obligated projects and 204 under construction, including critical transmission initiatives that strengthen system stability and improve service continuity for thousands of customers across the island.
The engineer reiterated that timely, predictable funding from all available sources is essential to sustain operational planning and carry out preventive interventions in an orderly manner, helping prevent existing conditions from escalating into larger outages for communities.
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.
