San Juan, Puerto Rico – May 8, 2026 – Puerto Rico Governor Jenniffer González-Colón secured two major legal victories today in her administration’s ongoing effort to remove and replace LUMA as the operator of Puerto Rico’s transmission and distribution system.

In fulfillment of a promise made to the people of Puerto Rico to cancel LUMA’s contract, the González Colón administration filed two actions before the Puerto Rico Court of First Instance seeking to invalidate the “Extension Letter” that attempted to indefinitely extend LUMA’s contract. Today, the United States District Court, under Judge Laura Taylor Swain, ruled in favor of the Government of Puerto Rico by ordering that the cases related to LUMA Energy be remanded back to Puerto Rico state courts.

“In plain terms, many people said we would never be able to prevail against LUMA because the Financial Oversight Board joined forces with LUMA under PROMESA, these cases would be moved to federal courts, and these would supposedly protect the company. I promised the people of Puerto Rico that I would defend the interests of everyone living on the island who suffers from the poor electric service we have endured, and that is exactly what we have done,” said the Governor.

The Court’s decision establishes that the removal of these cases to federal court was improper under PROMESA and confirms that the actions taken by the Government of Puerto Rico constitute a legitimate exercise of its regulatory and oversight authority to protect the public interest.

“The Court’s ruling clearly validates that the Government of Puerto Rico has both the authority and the responsibility to oversee and hold LUMA accountable when essential services, compliance with our laws, and the protection of the public interest are at stake. No one is above the law,” Governor González-Colón stated.

The Governor further noted that “the Court recognized that our actions are not merely contractual disputes, but rather public and regulatory actions aimed at guaranteeing the safety, well-being, and stability of Puerto Rico’s electric system. The Court also recognized that, as established contractually, these disputes must be addressed in our local courts and under our laws.”

Leading and supporting these efforts on behalf of the administration have been Chief of Staff and Executive Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF, for its Spanish acronym), Francisco J. Domenech; Puerto Rico Energy Czar and Executive Director of the Puerto Rico Public-Private Partnerships Authority (P3A), Josué Colón; and Executive Director of the Puerto Rico Electric Power Authority (PREPA), Mary Carmen Zapata. Together, they have actively advanced the Governor’s initiatives to defend the interests of the people of Puerto Rico, ensure LUMA’s compliance while transitioning the operation of the transmission and distribution system to a new private operator, safeguard the stability and reliability of the island’s electric system, and pursue alternatives to reduce electricity costs for consumers.

“This ruling represents a powerful validation of the authority vested in the Governor and the Government of Puerto Rico to oversee and enforce contracts involving private operators in defense of infrastructure that belongs to the people. From the beginning, our priority has been to protect our residents, ensure compliance with the law, and guarantee that any controversy involving the electric system is handled under our laws and in our courts,” said Chief of sTaff and AAFAF Executive Director Domenech.

For his part, Energy Czar Colón emphasized that the Federal Court’s decision reinforces Puerto Rico’s jurisdiction over disputes involving compliance with regulatory requirements and the interpretation of local legislation, including Act 29 and Act 120.

“Although the Court recognized that these are critical electric system assets, it also made clear that this does not eliminate the Government of Puerto Rico’s regulatory and oversight authority. This decision strengthens our ability to demand compliance and transparency in all matters related to the energy system,” Colón stated.

The administration reiterated that it will continue advancing the corresponding legal actions in Puerto Rico state courts to ensure that all matters related to the electric system strictly comply with the law, existing contracts, and the public interest, while continuing efforts to achieve the cancellation or nullification of LUMA’s contract in order to proceed with a new private operator for Puerto Rico’s electric grid.

“The priority of this administration will continue to be defending the people of Puerto Rico and guaranteeing a reliable, transparent, and more affordable electric system that operates in full compliance with the law,” the Governor concluded.

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