A group of electricity consumers in Puerto Rico is again asking the federal Title III court overseeing the Puerto Rico Electric Power Authority’s (PREPA; AEE in Spanish) debt restructuring to let a legal challenge proceed against a pension surcharge on electricity bills. They argue the fee is an unconstitutional tax that forces ratepayers to finance legacy pension obligations.
In a "Renewed Motion for Lift of Stay" filed November 5, four petitioners asked the court to lift a stay that has blocked their proposed class-action lawsuit in Puerto Rico courts. The charge applies to more than 1.5 million residential and commercial customers. It took effect September 1, 2025, and the Puerto Rico Energy Bureau (PREB) made it permanent for three years in an order issued April 15.
According to the filing, consumers have already paid more than $200 million, and the charge is expected to generate about $307 million a year, or roughly $25.6 million a month. The petitioners say customers receive no electricity service in return and that the money goes to PREPA’s retirement system. They cite PREB findings that PREPA must transfer the revenues to a separate pension system and does not control their use.
They also argue the Financial Oversight and Management Board cannot create legal authority for the charge by including pension funding assumptions in its fiscal plans. The bankruptcy court denied an earlier request on March 24; that appeal remains pending before the U.S. Court of Appeals for the First Circuit. The petitioners say Puerto Rico courts ruling would not interfere with the restructuring and could resolve questions PREB declined to answer.