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To ensure adherence to cost regulations, the Puerto Rico Energy Bureau (PREB) recently directed the operator of legacy power plants, Genera PR, to align with the cost programs implemented for acquiring emergency peak generation systems at the Jobos, Daguao, and Palo Seco facilities.
As stated by the regulatory body, “the project experienced delays and cost surges due to misrepresentations from Genera PR, especially regarding its assurance to uphold the initial costs and timeline proposed by the Puerto Rico Electric Power Authority (PREPA).”
“If Genera had valid reasons to believe that the timeline and expenses would escalate, it was their obligation to inform us without delay,” the document indicated. “Given that Genera promised to adhere to the schedule and costs but did not timely inform us of the supposed project overruns and delays, it is now required to comply fully with what it previously represented in terms of timing and expenses, which were essential for the endorsement of the NEPR [the Spanish initials for the Energy Bureau] Project Proposals (RFPs).”
PREB mandated that Genera finalize the project and reach commercial operation by the conclusion of spring 2026, in line with PREPA’s initial proposal. It also determined that non-compliance with the order would incur daily fines of up to $25,000 for each day the project remains unfinished past the set deadline.
“Our Office retains the right to enforce additional penalties should any further misrepresentations or delays come to light throughout the project,” remarked PREB Chairman Edison Avilés Deliz.
The document notes that Genera has claimed its strategy could shorten the completion timeframe by nine to 12 months, but is now estimating a completion date in 2027.
