News

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.

Chris Galford

Recent Posts

Limestone Ridge Project brings greater reliability to Southeast Missouri

In collaboration with Wabash Valley Power Alliance (WVPA), Ameren Transmission finished work on the Limestone Ridge Project at the end…

23 hours ago

Consumers Energy partners with Muskegon County for 250 MW solar facility in Michigan

Beginning in April, Consumers Energy of Michigan, the Muskegon County Resource Recovery Center, and Moorland Township will work together to…

23 hours ago

FirstEnergy completes sale of 30 percent stake in transmission subsidiary

FirstEnergy Corp. completed its sale of an additional 30 percent ownership interest in its FirstEnergy Transmission subsidiary to Brookfield Super-Core…

23 hours ago

DOE to award $22M to improve permitting process for clean energy projects

The U.S. Department of Energy (DOE) is awarding up to $22 million to improve planning, siting, and permitting processes for…

23 hours ago

Kentucky legislature seeks to expand state’s power over coal plants

A bill in Kentucky that could become law soon has the utilities industry concerned, along with environmental, business, and consumer…

2 days ago

Duke Energy progress seeking approval to build new solar facility

Duke Energy Progress is seeking approval from the Public Service Commission of South Carolina (PSCSC) to build and own a…

2 days ago

This website uses cookies.