The interruption of natural gas supply to the San Juan power plant is costing Puerto Rico about $1.25 million a day in more expensive replacement fuel, according to the Public-Private Partnerships Authority (AAPP), which ordered an immediate process to claim those costs from New Fortress Energy. At that rate, the added cost since September 16 exceeds $27.5 million, based on the official estimate.
The instruction is in an October 8 letter signed by Lionel E. Santa Crispín, general legal adviser to the AAPP and the Energy Czar’s Office. It is addressed to Osvaldo Carlo Linares, president of Regulatory Compliance Services Corp., which serves as the 3PPO and is ordered to pursue the contractual claim. The 3PPO must issue required notices, preserve and gather records, prepare the contract reconciliation and determine the gas quantities New Fortress failed to deliver without a valid excuse.
It must then calculate payments under the contract’s "deliver or pay" clause and prepare invoices or claims to be issued through the Puerto Rico Electric Power Authority (PREPA (AEE), or PREPA). The AAPP said the $1.25 million is a preliminary estimate, not the final recoverable amount, and that September 16 does not predetermine the claim or any force majeure defense.
The AAPP gave the 3PPO 48 hours to report on its evaluation, including New Fortress’s contractual grounds for withholding deliveries, force majeure claims, scheduled but undelivered gas, and replacement fuel use and cost. Written updates are due every three business days.