April 15, 2026 – La Fortaleza, San Juan, Puerto Rico – In line with the public policy of Governor Jenniffer González-Colón and her administration to stabilize the electric system with minimal impact on consumers, the Puerto Rico Energy Bureau (PREB) of the Public Service Regulatory Board rejected the rate increases requested by the system’s operators, which would have significantly raised electricity costs. Accordingly, as announced by the PREB, the adjustments to the rate resulting from the redistribution of system costs will not represent a substantial impact on the average residential customer’s bill.
“Our administration has remained firm in ensuring that costs stemming from operational inefficiencies or management failures are not passed on to citizens. Our focus is on transforming the system using the federal funds I secured while serving in Congress, maximizing the federal government’s support for our efforts, strengthening system reliability, and improving quality of life through efficient essential services. Our actions have increased generation and lowered costs,” Governor González-Colón stated.
“I thank the Puerto Rico Energy Bureau of the Public Service Regulatory Board for heeding my calls on behalf of the people and for recognizing the work we have undertaken since day one of my administration to bring energy stability to the island. The measures we have implemented led the PREB to reject an increase in the revenue requirement, which would have rewarded a lack of diligence and efficiency among private operators such as LUMA and placed an additional burden on consumers who have already endured the consequences of those inefficiencies. More than $15 billion in federal funds that I secured in Congress remain available, and operators must deploy these resources and ensure their use to achieve energy stability,” González-Colón added.
The Governor also outlined key actions taken by her administration to transform the energy system into one that is more reliable and cost-effective for the people.
Her administration has initiated an orderly transition for LUMA, identifying contractual breaches through legal actions currently under court review.
Over the course of the current term, significant progress has been made in transforming the energy system by increasing and diversifying energy production across the island, preventing the widespread outages that had been projected for the summer of 2025, and fostering a climate of confidence and stability to attract investment and improve residents’ quality of life. Energy generation has increased by 1,200 megawatts (MW); procurement processes have been launched for 3,000 MW of permanent generation and 800 MW of temporary generation; and previously inactive units have been rehabilitated, while others have been converted to natural gas to lower production costs.
Battery energy storage systems totaling 430 MW are currently under construction and installation, backed by a $758 million federal investment. These systems are expected to reduce load-shedding events by 90% and generate approximately $100 million in annual savings in generation costs.
At Costa Sur, the largest “Peaker” program installation on the island—modern, fast-start, rapid-response turbines, will be developed, adding 100 MW to strengthen system reliability during periods of high demand.
Approvals have also been secured for access to federal funding to convert units at the Palo Seco and San Juan power plants.
For natural gas supply, the contract with New Fortress Energy was renegotiated, resulting in direct savings of $16 billion; the contract term was reduced from 15 years to 7 years; and the exclusivity clause that restricted supplier diversification was eliminated.
“Today, we are seeing one of the most significant results of these actions over the past 15 months: the Energy Bureau’s rejection of the proposed rate increase,” the Governor concluded.
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