Infrastructure

Government Rejects LUMA Energy’s Claim of $1.3 Billion Cancellation Cost

Published Oct 16, 2026, 12:44 PM ASTvia NotiCel

At a glance

  • The AAPP and PREPA accused LUMA Energy of spreading fear with a supposed $1.3 billion bill if its contract is canceled
  • The AAPP and PREPA requested that the Supreme Court exclude a sworn statement by LUMA’s CEO, Janisse Quiñones
  • The contract’s Article 16 contemplates a 12-month period during which LUMA would have to continue operating the system and collaborating with a successor operator

Why this matters: For Puerto Rico’s consumers, canceling LUMA’s contract could mean avoiding a $143 million annual fixed service charge, and instead paying a $70 million base fixed charge under the main contract, potentially saving millions of dollars

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Power live: 1,878 customers out island-wide at 11:32 PM

In Puerto Rico, the Public-Private Partnerships Authority (AAPP) and the Puerto Rico Electric Power Authority (PREPA; AEE in Spanish) accused LUMA Energy of spreading fear with a supposed $1.3 billion bill if its contract is canceled, while trying to divert attention from the controversy that the Supreme Court must resolve: whether the amendment that extended its supplemental contract complied with the law. The AAPP and PREPA requested that the Supreme Court exclude a sworn statement by LUMA’s CEO, Janisse Quiñones, presented with their October 5, 2026, argument.

LUMA wants the public to believe that enforcing the law will cost $1.3 billion, which is a false and alarmist narrative

They claim that LUMA is trying to introduce estimates that are not part of the court record to fuel a narrative of chaos in the event of a declaration of nullity and eventual transition. The AAPP’s Executive Director, Josué A. Colón Ortiz, stated that LUMA wants the public to believe that enforcing the law will cost $1.3 billion, which is a false and alarmist narrative.

The motion explains that $935.4 million of the figure presented by LUMA corresponds to accounts that existed before any transition, which PREPA categorically denies owing. The AAPP and PREPA also blame LUMA for deficiencies in billing and collection, its alleged failure to reduce energy theft, and poor performance in recovering federal reimbursements, which puts billions of dollars destined for the reconstruction of the electrical system at risk.

They reaffirmed that the contract’s Article 16 contemplates a 12-month period during which LUMA would have to continue operating the system and collaborating with a successor operator. The motion also notes that maintaining the supplemental agreement indefinitely means continuing to pay an annual fixed service charge of over $143 million, which consumers pay, compared to the base fixed charge of $70 million that would be paid under the main contract.

In context (787daily, from public data)

SourceNotiCel

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Power live: 1,878 customers out island-wide at 11:32 PM