LUMA Energy takes over operation of Puerto Rico’s electric transmission, distribution system
Under a 15 year contract, LUMA Energy, LLC has taken over the operation and maintenance of Puerto Rico’s electric power transmission and distribution system from the Puerto Rico Electric Power Authority (PREPA).
The transition was official as of Monday, June 1, although LUMA was selected for the role last year, following a competitive process. As a result, LUMA — a joint venture between Quanta Services, Inc. and Canadian Utilities Limited — will be in charge of operating, maintaining, and modernizing PREPA’s system on the island. The 15-year period of the agreement begins upon PREPA’s exit from Title III bankruptcy, which was hastened by the catastrophic storms of recent years.
“We want to congratulate the teams at LUMA, Quanta and ATCO, and the Puerto Rico regulatory authorities, who have worked diligently to ensure the on-time transition of the operations and maintenance of Puerto Rico’s more than 18,000-mile T&D system to LUMA,” Quanta President and CEO Duke Austin said. “In LUMA, we have created a purpose-built and effective operator for the Puerto Rico T&D system and the people of Puerto Rico. We remain steadfast in our commitment to continue to invest our time, expertise, and resources to help drive efficient operations at LUMA, as it works to deliver a modern, secure, resilient, and affordable electric grid and to develop a highly trained craft-skilled workforce for the future of Puerto Rico.”
Under the arrangement, LUMA will not own Puerto Rico’s T&D assets, nor will it own or operate its power generation assets. However, the transfer has not been without its share of controversies, as organizations such as No More Promises, the March 8 Coalition, Red Flag, and PREPA workers under the Electrical Industry and Irrigation Workers Union have voiced concerns over the process and warned of both potential rate hikes and concerns for PREPA workers’ rights. LUMA has stated that PREPA workers who join the company will have the same or better salaries going forward.
