San Juan, Puerto Rico, September 20, 2021— LUMA, acting on behalf of the Puerto Rico Electric Power Authority (PREPA), presented a request for a rate adjustment to the Puerto Rico Energy Bureau (PREB) on Friday, September 16, 2021.  LUMA is required under contract to submit said request to the PREB. PREB’s regulation require quarterly reconciliations when there is a difference greater than $20 million between the combined sales invoiced for the purchase of fuel and power purchase.

In accordance with the contract and current PREB regulation, LUMA requested adjustment based on the costs incurred by PREPA for fuel and power purchase over the last three months.   

The largest driver of increased cost of operating the generation system during this past quarter was that PREPA’s generation fleet continued to experience multiple planned and unplanned outages that reduce the availability of electric power supply.  To meet customer demand, diesel-fueled peaker plants were activated to minimize load shedding.

LUMA does not establish the electricity service rate. That is the exclusive responsibility of the PREB.

Since June 1, 2021, LUMA has been responsible for the operation and maintenance of the transmission and distribution system in Puerto Rico. Power generation remains the responsibility of PREPA and other private generators. It should be noted that the rate changes have no impact on LUMA’s income, since the contract between the company, PREPA and the Authority for Public-Private Partnerships establishes a fixed payment for the operation and maintenance of the electric power transmission and distribution system in Puerto Rico.