The Puerto Rico Electric Power Authority has reached an agreement for private management of its transmission and distribution system.
The Financial Oversight and Management Board (FOMB) and other government entities approved the deal to hire a U.S.-Canadian consortium for operations. Known as LUMA Energy, the consortium is a joint venture between Quanta Services and Canadian Utilities Limited.
Under the current plan, there will be a one-year transition period followed by 15-year period with LUMA. This represents the first step toward privatizing PREPA.
In the meantime, hearings for the Restructuring Support Agreement (RSA) meant to address PREPA’s $9-billion debt have been stalled by Covid-19.