Puerto Rico Energy Bureau issues two major orders

These initiatives mark a pivotal moment for Puerto Rico’s energy landscape. By addressing both immediate and long-term needs, the island is taking proactive steps toward energy security, economic growth, and sustainability. As new projects emerge, Puerto Rico will greatly benefit from improved grid stability, job creation, and expanded infrastructure. We're proud to play our part in helping Puerto Rico build a stronger, more resilient energy future.

Significant impacts on businesses & the economy:

• New investment opportunities: The competitive procurement process will attract private capital & spur infrastructure projects.
• Employment & job creation: Construction, engineering, logistics, & maintenance roles will be in demand as new projects roll out.
• Supply chain growth: Increased procurement of materials, equipment, and services will benefit local & international vendors.
• Energy security & stability: These measures will help stabilize Puerto Rico’s grid, supporting businesses that rely on reliable electricity.
• Long-term industry transformation: The shift toward flexible generation solutions opens doors for innovation, technology adoption, & a more sustainable energy future.

Read the official Resolution & Order below:

GOVERNMENT OF PUERTO RICO

PUBLIC SERVICE REGULATORY BOARD

PUERTO RICO ENERGY BUREAU

IN RE: PRIORITY PLAN FOR THE

STABILIZATION OF THE ELECTRIC GRID

CASE NO.: NEPR-MI-2024-0005

SUBJECT: Resolution and Order regarding the acquisition of a new temporary generation.

RESOLUTION AND ORDER

On February 26, 2025, Genera PR, LLC ("Genera") submitted a document titled Request for Accelerated Approval of Emergency Generation Capacity Solutions ("Request") before the Energy Bureau of the Puerto Rico Public Service Regulatory Board ("Energy Bureau"). In its Request, Genera describes a critical situation within the electrical system due to a shortage of generation capacity, which has worsened following the catastrophic failure of Unit 1 of the Aguirre thermoelectric plant. In an effort to mitigate this generation shortfall, Genera proposed: (a) installing approximately 800 megawatts ("MW") of temporary mobile generator capacity for a period of eighteen (18) months; (b) replacing damaged units with used but functional generation units; and (c) deploying generation barges to supplement the energy supply and mitigate the current generation deficiency affecting the country.

Since, under the Puerto Rico Transmission and Distribution System Operation and Maintenance Agreement executed by the Puerto Rico Electric Power Authority ("Authority"), the Public-Private Partnerships Authority ("P3"), and LUMA[1], it is LUMA’s responsibility, among others, to analyze the adequacy of generation resources, on February 27, 2025, the Energy Bureau, through a Resolution and Order, determined that LUMA was the entity responsible for preparing and submitting any request for additional generation capacity within the framework of resource adequacy. To that end, the Energy Bureau granted LUMA until March 6, 2025, to present its position regarding the Request, specifically addressing the need for additional temporary generation capacity and its feasibility, if any, in light of the findings of the Resource Adequacy Report.

On March 6, 2025, LUMA submitted a document titled Motion Submitting LUMA’s Position Regarding Genera’s Request for Accelerated Approval of Emergency Generation Capacity Solutions ("March 6 Motion"). In the March 6 Motion, LUMA expressed its support for the proposal, recognizing the current generation deficit, estimated between 700 and 850 MW. However, LUMA noted that it had not yet conducted a detailed technical analysis regarding the challenges and timeline necessary for the installation of the proposed capacity. LUMA also underscored the importance of thoroughly evaluating the proposal, including identifying priority locations, analyzing site conditions, and developing impact models for the electrical system. Furthermore, LUMA highlighted that in 2024, there were 115 load-shedding events, a significant figure compared to the North American utility standard of one (1) event every ten (10) years.

On March 12, 2025, the Energy Bureau ordered, among other things, LUMA, Genera, and the Authority to submit, within a period of ten (10) days, a detailed report on all adjudicated generation projects under their responsibility to enable a responsible evaluation of the request for new generation acquisition. This deadline expires on Monday, March 24, 2025.

However, due to the emergency situation we are facing, the Energy Bureau will adjudicate the request for the acquisition of temporary generation before the required reports’ deadline.

LUMA reported that the system is facing a generation deficit estimated between 700 and 850 MW. Consequently, the Energy Bureau APPROVES any urgent and temporary initiative necessary to address the emergency situation, with particular attention to the availability, capacity, installation time, and costs associated with the temporary generation acquired.

The Energy Bureau EMPHASIZES that the acquisition of new temporary generation does not contravene the current Integrated Resource Plan.[2]

In accordance with the foregoing, the Authority is ORDERED to, within three (3) days from the notification of this Resolution and Order, appear before the Public-Private Partnerships Authority ("P3") and initiate the process with the Independent Third-Party Procurement Office ("3PPO"), as Genera is a restricted party as determined by P3.[3] Likewise, the Authority is ORDERED to provide the Energy Bureau with proof of compliance with this Resolution and Order on or before Monday, March 24, 2025.

Furthermore, the Authority is ORDERED to, once the bidding process for the acquisition of generation is completed, submit to the Energy Bureau the costs associated with each initiative so that the Energy Bureau may determine whether they are prudent and reasonable.

Notify and publish.

CERTIFICATION

I certify that this was agreed upon by the majority of the members of the Puerto Rico Energy Bureau on March 19, 2025. I also certify that on March 19, 2025, a copy of this Resolution and Order was notified via email to arivera@gmlex.net; mvalle@gmlex.net; lrn@roman-negron.com; legal@genera-pr.com; regulatory@genera-pr.com; laura.rozas@us.dlapiper.com; margarita.mercado@us.dlapiper.com, and was filed in the case records.

In witness whereof, I sign this document in San Juan, Puerto Rico, today, March 19, 2025.