LUMA Energy, the private operator of Puerto Rico's electric transmission and distribution grid, is urging regulators to take a broader look at the electrical system's finances before ordering a $30 million transfer to Genera PR's contingency reserve fund. In a motion filed Tuesday, LUMA argued that the system's liquidity has deteriorated to the point where moving tens of millions into a single emergency account could further destabilize day-to-day operations across all entities.
The filing responds to a Sept. 11 motion from Genera PR, which asked the Puerto Rico Energy Bureau (PREB) to compel the Puerto Rico Electric Power Authority (PREPA) to immediately fund the contingency reserve account created under a June 15 order. Genera said the account remains unfunded and that the lack of dedicated emergency cash hampers its ability to respond to outages, equipment failures and other urgent events.
LUMA's motion came a day after PREB held a hearing on a request for a six-cent rate hike and on the utility's problems receiving natural gas supplies. LUMA pointed to its Aug. 18 informative report, which showed the system's operating accounts were collectively underfunded by about $37.5 million before the August replenishment cycle: $30.5 million for LUMA, $6.2 million for Genera and roughly $800,000 for PREPA.
Fuel costs have also outpaced what the Fuel Charge Adjustment (FCA) collects from customers: FCA revenues fell short by $108 million between May and June, with another $75.9 million gap identified for June and July.