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RCS 10

Para ordenar a la Gobernadora del Estado Libre Asociado de Puerto Rico, Jenniffer A. González Colón, que realice dentro de un término de sesenta (60) días todas las gestiones y acciones necesarias, para que la Autoridad para las Alianzas Público-Privadas de Puerto Rico y la Autoridad de Energía Eléctrica notifiquen a LUMA Energy el inicio de la 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, por incumplimiento con 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

Governor directed to terminate LUMA Energy's electrical grid contract within 60 days while ensuring service continuity during operator transition.

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Bill Summary · RCS 10

Legislative bill overview

Bill RCS 10 orders Puerto Rico's Governor to initiate contract termination proceedings against LUMA Energy within 60 days, citing breach of the Operation and Maintenance Agreement and Supplemental Agreement signed in 2020. The bill requires coordination between the Public-Private Partnerships Authority and the Electric Power Authority to notify LUMA Energy of cancellation while maintaining continuous electrical service during the transition.

Why is this important

LUMA Energy has operated Puerto Rico's electrical grid since 2020 under a controversial contract. This bill represents a direct legislative effort to remove the operator, reflecting ongoing disputes over service quality, rates, and operational performance. The outcome will significantly affect Puerto Rico's energy infrastructure management and millions of residents' access to electricity.

Potential points of contention

  • Contract enforceability and legal exposure: Terminating a major infrastructure contract may trigger lengthy litigation and potential financial penalties against the Puerto Rico government, complicating fiscal recovery efforts.
  • Operational continuity risks: Transitioning electrical grid operators within 60 days poses substantial technical and logistical challenges; inadequate planning could result in service disruptions affecting the entire island.
  • Replacement operator availability: No alternative operator appears identified; the bill provides no clear plan for who will manage the grid post-LUMA, creating regulatory and service delivery uncertainty.

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

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