The Puerto Rico Electric Power Authority announced Monday it has extended its contract with AlixPartners through March 15, 2016, as the utility continues negotiation discussions with creditors and focuses on implementing a comprehensive transformation.
As part of the contract extension agreement, Lisa Donahue and her team will continue to assist PREPA in its transformation and she will remain in her role as chief restructuring officer. The extension agreement includes $7.2 million in fees, which “will enable AlixPartners to provide specialized guidance for upcoming initiatives contemplated as part of PREPA’s transformation,” PREPA said in a statement.
AlixPartners will also continue to assist PREPA in achieving and executing upon the Restructuring Support Agreement reached with the Ad Hoc Bondholder group, fuel line lenders and the Government Development Bank and in negotiating with monoline bond insurers.
This extension enables PREPA to continue implementing critical initiatives uninterruptedly, the public corporation said.
“PREPA’s transformation has been an immense undertaking and AlixPartners has been a key advisor for us,” said Harry íguez, 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,” he said.
“The work of Lisa Donahue, her team and our employees is helping to transform PREPA, so that consumers can have stable and reliable energy for generations to come.”
PREPA will continue working to modernize power plants, increase its service offering, provide employees with a job environment where they can work safely and effectively, and offer customers stable rates, all in compliance with the applicable environmental regulations, company officials said.
This is the third extension of the AlixPartners contract and will increase the value of the contract to $27.7 million. The extension agreement will enable AlixPartners to provide specialized guidance and expertise in areas such as information systems, transmission and distribution, human resources, finance and operations.
Last week, PREPA announced it had amended the RSA, extending the deadline to reach an agreement to Nov. 20. The public utility said it would use the extension to continue discussions with its monoline bond insurers, while the legislative process to approve the PREPA Revitalization Act continues.
However, because the bill was not approved last week before the end of the legislative session, it will likely require an extraordinary session to move through the Capitol. Gov. Alejandro García-Padilla has yet to confirm whether he will convene the special session, and when. Several sources told this media outlet Monday that an extraordinary session would likely happen in early December.