The Puerto Rico Energy Bureau (PREB) has authorized $4.015 million for environmental compliance work at two power plants operated by Genera PR, while denying for now a separate $3.285 million request. The regulator said the company has not adequately shown that federal funding opportunities are exhausted. In a resolution in Case No. NEPR-MI-2021-0004, the PREB approved amendments to Genera’s fiscal 2027 budget to fund environmental outages at Costa Sur Unit 5 and Palo Seco Unit 4, work required under the 1999 federal consent decree between the Puerto Rico Electric Power Authority (PREPA; AEE in Spanish), the U.S. Environmental Protection Agency and the U.S. Department of Justice.
The money comes from an unallocated balance in the fiscal 2026 reconciliation amount and will not raise electricity rates. Genera’s September 2026 request sought up to $7.3 million for four outages involving inspection, maintenance and replacement of emissions-control equipment. Costa Sur Unit 5’s compliance window closes in late 2026 or early 2027; Palo Seco Unit 4 faces an April 2027 deadline.
Failure could expose PREPA to federal penalties and possible EPA-ordered shutdowns. The PREB denied, without prejudice, the fiscal 2028 requests for Palo Seco Unit 3 and San Juan Unit 7, noting Genera had already secured federal funding for similar work at Costa Sur Unit 6, Aguirre Unit 2 and San Juan Unit 9. Part of the Palo Seco Unit 3 work may fall under a FEMA Accelerated Award Strategy project with more than $34 million for Palo Seco Units 3 and 4.
Genera may refile by April 30, 2027 with documentation of federal applications and a certification that no public funding is available. Future federal reimbursements must be credited back to the fiscal 2026 reconciliation account.