The Puerto Rico Electric Power Authority announced Tuesday it has extended its contract with AlixPartners through Aug. 15, 2016, as the utility seeks to implement its ongoing comprehensive financial restructuring and operational transformation.
As part of the contract extension agreement, Lisa Donahue and her team will continue to work on implementing the Restructuring Support Agreements including PREPA’s operational transformation, the company said.
The extension agreement includes $9.1 million in fees, which will enable AlixPartners to “provide specialized guidance for upcoming initiatives such as the rate case, debt exchange offer, governance reforms, and continued operational improvements contemplated as part of PREPA’s transformation.”
This extension of the AlixPartners contract increases the value of the contract to $36.8 million. But the power utility said that to date, it has already obtained approximately $170 million in recurring annual savings and $155 million in one-time cash savings from these improvements.
“AlixPartners has been a key advisor for us, and this extension enables PREPA to continue implementing critical initiatives without interruption,” said Harry Rodriguez, chairman of PREPA’s Governing Board.
“To date, we have identified and implemented millions of dollars in cost savings and found new ways to enhance efficiency, improve operations, and facilitate future investments in our infrastructure. The work of Lisa Donahue, her team and our employees is helping to transform PREPA,” he said.
PREPA management is working with AlixPartners on several initiatives that will provide cost savings, operational efficiencies, improved customer service and a safe workplace for our employees.
Coming up on the agenda is working with creditors on a recovery plan document and the acquisition by the creditors of $111 million in new power revenue bonds to inject liquidity into the public corporation.