From The Star Staff
This week, the Multisectoral Board reached out to the four candidates for governor, urging them to reject the proposed electricity rate increases from the Financial Oversight and Management Board and the bondholders of the Puerto Rico Electric Power Authority (PREPA) aimed at addressing the utility’s debt.
Comprising various commercial, religious, union, professional, educational, environmental, and community groups, the board expressed concerns over the severe economic repercussions these increases would bring to the island, the electrical infrastructure, and the pensions of numerous retirees.
Negotiations are currently underway among the stakeholders in PREPA’s bankruptcy case to reach an agreement regarding the $9 billion debt of PREPA, which may lead to increased electricity rates to cover that debt.
A letter from over 40 organizations pointed out the urgent issues facing the island’s electrical grid, including frequent outages, inadequate maintenance, and the instability of generation, transmission, and distribution systems that adversely impact both consumers and businesses suffering from unreliable service.
“The electrical system of Puerto Rico cannot handle a rate hike that lasts beyond 35 years, particularly in such a degraded state that causes continuous blackouts and economic harm to families and enterprises. It is crucial for the gubernatorial candidates to prioritize finding solutions that focus on the welfare of the populace and the revival of the electrical system above servicing debt in bonds,” stated attorney José Pou from the Institute of Competitiveness and Economic Sustainability. “Channeling billions toward debt repayment as demanded by the bondholders would only sustain a flawed electrical system.”
Johnny Rodríguez Ortiz, head of the PREPA Retirees Association, stressed the necessity for gubernatorial candidates to safeguard retirees’ pensions.
“Over 10,000 retirees are faced with the uncertainty of the absence of a reliable source for their pensions starting in December,” he noted. “These individuals dedicated their working lives to establishing Puerto Rico’s electrical system, and we must not leave them vulnerable amid this crisis. We require a definite assurance from our prospective leaders.”
The correspondence, directed to Juan Dalmau Ramírez (Puerto Rican Independence Party-Alliance), Jenniffer González Colón (New Progressive Party), Javier Jiménez Pérez (Dignity Project), and Jesús Manuel Ortiz González (Popular Democratic Party), criticizes the bondholders’ strategy led by GoldenTree Asset Management, who are determined to recover the entire debt at the cost of the people of Puerto Rico, despite being aware of PREPA’s precarious state following Hurricane María.
“It is intolerable that speculators like GoldenTree aim to achieve excessive profits at the cost of our energy and economic recovery,” remarked Cathy Kunkel from the No More Increases to Electricity campaign. “Candidates must align themselves with the public interest and the immediate need to rehabilitate the electrical system, rather than catering to the extractive interests of bondholders.”
The Multisectoral Board called upon the candidates to focus on reconstructing a dependable, accessible, and sustainable electrical system for Puerto Rico.
