The Government of Puerto Rico on Tuesday rejected the $1.3 billion calculation that LUMA Energy submitted to the Supreme Court as the consequence of annulling the extension of its contract. The Executive maintains that about 70% of that amount corresponds to operating balances, accounts payable and other obligations that a change of operator would not cause.
According to the Executive, the Puerto Rico Electric Power Authority (AEE) does not owe LUMA the amounts that make up roughly 70% of the calculation, and the system’s liquidity problems cannot be attributed to an eventual transition. The response from the Government, the Public-Private Partnerships Authority (AAPP) and the AEE came after LUMA argued on Monday that invalidating the so-called Carta-Extensión would cause approximately $1.3 billion in costs and obligations, of which it estimated at least $726 million would be unavoidable.
Energy Czar Josué Colón Ortiz said in written statements: "This administration is defending the people of Puerto Rico from a company that keeps the people with a deficient essential service, so we are not going to stand idly by." He added that, given LUMA’s breaches, the administration will keep using all tools at its disposal to demand results, oversee firmly and defend the interests of the people above any contract or company.