IEEFA warns Puerto Rico Legislature against power plant privatization process
In a letter to the Puerto Rico Legislature, Tom Sanzillo, director of Financial Analysis at the Institute for Energy Economics and Financial Analysis (IEEFA), urged the House and Senate to reevaluate the ongoing bidding process to privatize operations of the island’s power plants.
“We have observed the flaws in the privatization processes of LUMA Energy and New Fortress Energy,” said Sanzillo. “They have led to poorer service, higher rates and increased dependence on fossil fuels.”
Sanzillo’s letter exposed serious concerns about the potential results of the privatization, leading to detrimental results for the public interest of Puerto Rico.
“The Legislature must act quickly to revise the process of Law 120,” said Sanzillo. “Greater transparency and public hearings on proposed generation system contracts before they are privatized are essential to preventing the same tainted patterns.”
IEEFA has closely followed Puerto Rico’s electrical system issues since 2015, focusing on the physical and financial condition of the Puerto Rico Electric Power Authority.