Over the past four years, we have made historic progress in stabilizing and strengthening Puerto Rico’s electric grid to meet the expectations of nearly 1.5 million customers. These investments focus on enhancing reliability and resiliency, making the system stronger against severe weather and restoring power more quickly in the event of outages. 

Why Now? 

This process was requested by the Puerto Rico Energy Bureau (PREB) and involves Puerto Rico’s three energy operators: LUMA, Genera PR, and the Puerto Rico Electric Power Authority (PREPA). The PREB reviews the information presented by each operator and determines the investments and rates needed to support the island’s electric system. 

This review presents an opportunity to continue stabilizing and modernizing Puerto Rico’s electric infrastructure while maintaining fiscal responsibility and minimizing the impact on customer bills. 

Since assuming operations in 2021, we have invested billions of dollars to replace aging infrastructure, install smart technology, and improve reliability across the island. These improvements are already benefiting customers, and the PREB-led rate review will ensure continued progress for all energy operators. 

 
How the Rate Review Process Works? 

The rate review process ensures transparency, fairness, and accountability in evaluating energy investments. It is led by the Puerto Rico Energy Bureau (PREB), which independently regulates and approves all electric rates on the island.

Here’s how it works: 

1. Request and Review: The PREB requests detailed cost and investment data from each operator, including LUMA, Genera PR, and PREPA, to evaluate system needs and determine required investment levels. 
2. Public Hearings: Experts, customers, and stakeholders participate in public hearings to share their input. 
3. Evaluation: The PREB reviews technical studies, financial data, and operational evidence to confirm that proposed investments are necessary and cost-effective. 
4. Decision: The PREB makes the final decision on which investments to approve and how they will affect customer rates.  

Our role is to provide accurate data, transparent analysis, and investment options that strengthen reliability and resiliency while minimizing customer impact. 

 What the Rate Review Process Does Not Cover? 
The rate review only applies to the Transmission and Distribution (T&D) portion of Puerto Rico’s electric system, which is operated by us.

It does not cover: 

• Energy generation or fuel costs, managed by Genera PR and PREPA. 
• Federal funds, which are reserved for reconstruction and cannot be used for daily operations. 
• Decisions or responsibilities of other energy operators, which are regulated separately by the PREB. 

This means the rate review focuses exclusively on ensuring that the T&D system is reliable, resilient, and operated responsibly without influencing how electricity is generated or how federal recovery funds are used.

Increasing Reliability and Resiliency 

Puerto Rico’s electric system suffered decades of neglect, leaving equipment outdated and redundancy limited. Through targeted grid improvements, we are reducing the duration and frequency of outages, while also improving overall system stability.

The Optimal Budget would prevent approximately 240 million customer interruption minutes by 2028, with an estimated impact of less than 1.02 dollars per day

The Constrained Budget focuses on gradual improvements that reduce rate impact while preventing 186 million interruption minutes by 2028, at less than 58 cents per day. 

Every cent of the transmission and distribution portion of customer bills is reinvested directly into the grid and essential operations.