Infrastructure

Utier Tells Puerto Rico Supreme Court Return of the Power Grid to Public Hands Is Feasible

Published Oct 13, 2026, 12:29 PM ASTvia El Nuevo Día

At a glance

  • The Utier argued that the T&D OMA includes provisions for the return of functions to PREPA
  • LUMA has maintained that its contract is valid and that canceling it would cost at least $1.3 billion
  • The Puerto Rico government has disputed this, arguing that the contract extension was not carried out correctly

Why this matters: For Puerto Rico, a return of the electric grid to public hands could mean increased control over the island’s energy infrastructure and potentially lower costs for consumers, but it also poses risks and challenges for the island’s economy and energy stability.

Our coverage

Power live: 1,710 customers out island-wide at 12:14 AM

The Electrical and Irrigation Industry Workers Union (Utier) told the Puerto Rico Supreme Court that it can help the court ensure the management and operation of the island’s power grid returns to public hands. In a request to appear as amicus curiae in the government’s lawsuit seeking to cancel the contract with LUMA Energy, the union said the T&D OMA (the operation and maintenance agreement) contemplates returning functions to the Puerto Rico Electric Power Authority (PREPA (AEE), PREPA), identified as the Owner.

Utier cited Section 4.9(a)(ii) of the supplemental agreement, which modified Section 16.1 of the OMA to make automatic termination of the supplemental agreement a trigger for the start of a transition, with operation returning to PREPA or a successor operator. LUMA and Governor Jenniffer González Colón’s administration have disputed since late last year the validity of the extension of the supplemental agreement.

LUMA says its pact, signed in mid-2020 and extended indefinitely by a November 30, 2022 letter, is valid, and that cancellation would cost at least $1.3 billion, including $726 million in mandatory payments. The government says the extension was not done properly and PREPA would not have to pay that sum. In its filing on Friday, October 9, Utier said the OMA requires LUMA to transfer financial records, equipment and assets.

It said the transition need not start from scratch, citing the 1,800 employees PREPA still has, and that LUMA would keep meeting its obligations while the new management gradually takes over.

In context (787daily, from public data)

  • LUMA's portal showed 0.2% of customers out at 6:06 AM AST on Oct 18, 2026. Across the 42 days 787daily has tracked it, the daily average is 0.3% and the worst was 1.8% on Sep 30, 2026.

    LUMA Energy outage portal · Oct 18, 6:06 AM AST
  • Customers averaged 28.4 hours without power in the fiscal year that ended in June 2026, the worst of the five full years LUMA has run the grid and up from 26.3 hours the year before.

    LUMA operates the transmission and distribution system.

    PR Energy Bureau, as filed by LUMA · fiscal year ending June 2026
SourceEl Nuevo Día

Follow this story

Our coverage

Power live: 1,710 customers out island-wide at 12:14 AM

  1. · El Nuevo DíaCanceling LUMA Energy Contract Would Cost $1.3 Billion, Company Tells Supreme Court