Gov. Pedro Pierluisi vetoed a Puerto Rico legislative measure that would have delayed the privatization of the transmission and distribution system for the Puerto Rico Electric Power Authority.
In his veto on Wednesday Pierluisi said the bill was unconstitutional since it undermined contractual obligations with LUMA Energy. The bill was also inconsistent with the Puerto Rico Oversight Board approved fiscal plans for the central government and for PREPA.
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“I believe that there is no justification to postpone the execution of the LUMA contract to January 2022 or any later date, since all the requirements to commence said execution have been met or are expected to be met on or before June 1, 2021,” Pierluisi said in a statement. “I reiterate my support for the model of public-private partnerships to modernize and restore the transmission and distribution of energy in Puerto Rico in order to improve the service to our people, provide more accessible and cheaper energy, and promote the diversification of our energy sources.
“Likewise, I believe the approval of this joint resolution is not necessary since the Authority for Public-Private Partnerships and PREPA will be in a position to negotiate any amendment to the LUMA contract that is beneficial to the public interest,” Pierluisi said.
In June 2020, Puerto Rico announced a contract with LUMA Energy to take over PREPA’s transmission and distribution system. LUMA is to use the period up to July 1 of this year to prepare for the takeover. LUMA was to operate the system for 15 years.
Pierluisi said the legislative measure, House Joint Resolution 88, was also unnecessary.
According to The Weekly Journal and Amico Hoops websites, on March 26 LUMA Energy President Wayne Stensby rejected any amendments to LUMA’s contract. He said LUMA’s and PREPA’s boards of directors, the Puerto Rico Oversight Board, and the Puerto Rico governor had approved it. The contract was signed with the Puerto Rico Public-Private Partnership Authority.