February 12, 2025 – La Fortaleza, San Juan, Puerto Rico – The administration of Governor Jenniffer González-Colón, through the Governor’s Chief of Staff and Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), Francisco Domenech, issued the following statement regarding the Financial Oversight and Management Board for Puerto Rico’s (FOMB) approval of the final Certified Fiscal Plan for the Puerto Rico Electric Power Authority (PREPA):

The Government is reviewing the final Certified Fiscal Plan for the Puerto Rico Electric Power Authority, as the FOMB did not share the document with the Government at any point before its certification and publication, despite multiple requests made to the entity’s executive director to do so. For Governor Jenniffer González-Colón’s administration, this lack of communication from FOMB is entirely unacceptable.

As a result, the Government of Puerto Rico (AAFAF, Energy Czar, PREPA) is analyzing the Certified Fiscal Plan and financial projections to determine whether the information provided by the Operator is accurate and if the expected outcomes are realistically achievable.

For the first time, the FOMB’s Fiscal Plan is based on cost projections requested directly from the Operators, estimating what they might need to spend in an ideal scenario to repair the electrical system. These projections were accepted without assessing whether the expenses are realistic or reasonable and without considering the spending limitations that may be imposed by the Energy Bureau. Based on what we read in the press, it is only after the publication of the Certified Fiscal Plan that the FOMB intends to validate the provided information and conduct additional modeling. We find it highly unprofessional to issue a Certified Plan without first performing this analysis.

We are aware that there will be no rate increases without review and approval by the Energy Bureau, which will conduct its own analysis independent of the FOMB’s.

While the Certified Fiscal Plan highlights the harsh realities facing PREPA and Puerto Rico’s energy system, it does not consider the new energy policies of Governor González-Colón’s administration. These policies aim to provide Puerto Ricans with a more efficient and stable electrical grid by reducing fuel costs, among other efficiencies.

The González-Colón administration’s current energy policies include strategic structural changes designed to improve the reliability, affordability, and operational efficiency of the electrical grid through:

Initiatives to stabilize the generation system, including extending the lifespan of Puerto Rico’s lowest-cost generation unit, converting existing plants to liquefied natural gas (LNG), and developing new, reliable LNG power generation plants.

A focus on realistic renewable energy targets and procurement assumptions that consider cost and affordability (the current administration does not support a renewable energy approach at any cost or price). New renewable energy sources will be integrated into Puerto Rico’s energy system only to the extent that they are economically and operationally efficient.

Strict and coordinated oversight of private operators through the executive branch of the government and regulatory authorities, including the review and potential restructuring of existing public-private partnership (P3) agreements and contractual terms to ensure better value and service quality for all Puerto Rico consumers."

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