Department of Consumer Affairs sues to void LUMA immunity clause
The Puerto Rico Department of Consumer Affairs has filed a lawsuit seeking to void a key section of LUMA Energy’s operating contract, arguing that the clause unconstitutionally shields the private utility from liability for service failures and consumer claims.
In a complaint filed in San Juan Superior Court, the agency contends that the Puerto Rico Energy Bureau exceeded its authority when it approved Section 4.1(g) of LUMA’s Operation and Maintenance Agreement in 2021. The provision, approved by administrative resolution, grants LUMA broad immunity from legal responsibility for damages caused by power outages, voltage fluctuations and other alleged service deficiencies — even in cases of gross negligence.
The agency, known by its Spanish acronym DACO, said the measure strips Puerto Rico residents and businesses of basic legal protections. “The Energy Bureau granted a blank check to LUMA to act negligently,” the complaint states, arguing that only the Legislative Assembly can enact liability limits or confer immunities under the Puerto Rico Constitution’s separation of powers doctrine.
The lawsuit follows LUMA’s admission during a public hearing before the Puerto Rico House Consumer Affairs Committee that it had denied 1,828 customer claims for damaged electrical appliances, citing the contested immunity clause.
“LUMA continues to be protected by a scheme of immunity that exempts it of responsibility by acts of negligence that cause real harm to citizens,” the complaint alleges.
Before LUMA took over operation of the electric grid in 2021, the Puerto Rico Electric Power Authority — a public corporation — accepted such claims and was not covered by a similar legal shield. DACO argues that replacing that process with a near-total immunity clause for a private company violates consumers’ rights.
No other “jurisdiction in [the] United States grants general immunity to private energy companies,” the filing states. “This makes LUMA’s case in Puerto Rico unprecedented and exceptional.”
The lawsuit asks the court to declare Section 4.1(g) and the Energy Bureau’s resolution unconstitutional and null. It also seeks to restore consumers’ ability to pursue legal claims for damages linked to grid instability or service disruptions.
The case adds to growing public and political scrutiny of LUMA, which has faced repeated criticism over power reliability, customer service, and transparency. The company, which manages Puerto Rico’s transmission and distribution system, is also the beneficiary of billions in federal funding for post-hurricane grid reconstruction.
In a statement issued after the lawsuit was announced, LUMA said it had not yet been officially notified but would respond “with the seriousness and responsibility it deserves through the court.”
“Our commitment is to continue working for the benefit of our customers, despite the significant challenges we face in operating a fragile and deteriorating electrical system, which for years has lacked the necessary maintenance and investment,” the company said.
DACO is represented in the case by attorneys Valerie Rodríguez-Erazo, Gadiel Figueroa-Robles and Samuel Silva-Rosas.
