Josué A. Colón Ortiz, the energy czar and executive director of the Puerto Rico Public-Private Partnerships Authority (AAPP), has withdrawn Genera PR’s authority to purchase replacement natural gas for the San Juan power plant due to a conflict of interest with New Fortress Energy, which has halted gas deliveries since September 16. Colón Ortiz sent two letters on October 8, one to Genera and one to New Fortress, giving the latter 24 hours to confirm steps to resume deliveries, including the unloading of the Amur River ship.
The interruption has cost approximately $1.25 million daily in additional fuel, according to Genera. Colón Ortiz ordered the AAPP to take immediate control of purchasing replacement gas and directed Genera not to discuss prices or terms without the AAPP’s involvement. The decision was based on the fact that replacement gas can only be delivered through New Fortress’s terminal in San Juan, creating a conflict of interest.
New Fortress had conditioned the resumption of deliveries on the Energy Bureau’s revocation of certain orders or the Puerto Rico Electric Power Authority’s commitment to pay its bills without discounts, which Colón Ortiz said was not a contractual requirement. The AAPP has demanded that Genera provide information on its efforts to secure alternative gas supplies by 5:00 PM on October 9.