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RCC 13

Para Ordenar a la Autoridad para las Alianzas Público Privadas de Puerto Rico y a la Autoridad de Energía Eléctrica notificar a LUMA Energy que comience el proceso contractual de cancelación del contrato conocido como el Operation and Maintenance Agreement del 17 de junio de 2020 y el Supplemental Agreement del 22 de junio de 2020, dentro de un término de sesenta (60) días, por incumplimiento de varias cláusulas contractuales por parte de LUMA Energy, LLC (en un momento conocida como LUMA ManageCo) y LUMA ServCo., entre ambos los Operadores de GridCo; garantizar la continuidad del servicio durante la transición; y para otros fines.

2025-2028 Session

The bill requires Puerto Rico authorities to notify LUMA Energy to start contract cancellation within 60 days due to breaches, while ensuring service continuity during the transiti

Referido a Comisión(es)
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WeVote Research Nonpartisan
Bill Summary · RCC 13

Summary: RCC 13

Overview

RCC 13 is a resolution introduced on January 2, 2025, and referred to committees for consideration. The bill directs two Puerto Rico authorities—the Autoridad para las Alianzas Público Privadas de Puerto Rico (P3 Authority) and the Autoridad de Energía Eléctrica (AEE, the Electric Power Authority)—to notify LUMA Energy to begin the contract-cancellation process for the Operation and Maintenance Agreement dated June 17, 2020 and its Supplemental Agreement dated June 22, 2020. The trigger for initiating cancellation is stated as breach of multiple contractual clauses by LUMA Energy, LLC (formerly LUMA ManageCo) and LUMA ServCo, which together operate GridCo. The measure also requires ensuring continuity of service during the transition and serves other unspecified purposes.

Purpose

  • To compel the P3 Authority and AEE to notify LUMA Energy to commence the contract termination process for the O&M Agreement (June 17, 2020) and the Supplemental Agreement (June 22, 2020).
  • To enforce a 60-day notification window.
  • To safeguard service continuity during any transition resulting from contract termination.
  • To address alleged contractual breaches by LUMA Energy entities.

Key Provisions

  • Delegated action: The P3 Authority and AEE must notify LUMA Energy to start the contract-cancellation process.
  • Timeline: A 60-day deadline is established for initiating the cancellation process.
  • Grounds: The trigger for cancellation is stated as breaches of multiple contractual clauses by LUMA Energy, LLC (formerly LUMA ManageCo) and LUMA ServCo.
  • Transition guarantee: The bill requires measures to ensure continuity of electrical service during the transition period.
  • Additional purposes: The resolution may include other related objectives not explicitly specified in the summary.

Affected Parties and Impacts

  • Directly affected: LUMA Energy, LLC; LUMA ServCo.; GridCo Operators (the two entities referred to as GridCo Operators).
  • Indirectly affected: Puerto Rico Electric Power Authority (AEE) and the Puerto Rico Public-Private Partnerships Authority, which would carry out the notification and cancellation steps.
  • Public impact: Potential changes in grid management and operation, with implications for service continuity and transition planning; consequences for customers depending on how the transition is managed.

Procedural History and Timeline

  • Introduced: January 2, 2025.
  • Legislative actions:
    • 2025-01-02: Filed.
    • 2025-01-16: Appears in First Reading in the House.
    • 2025-01-16: Referred to committees.
  • Current status: Referred to commissions; under committee review.

Notes

  • RCC indicates a resolution rather than a binding law.
  • The language emphasizes initiating contract cancellation within 60 days and ensuring a smooth transition, but does not specify replacement arrangements or funding provisions. Further details would emerge during committee discussion and potential subsequent floor action.

Compiled from official sources — confirm details with the bill’s official record.

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