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LUMA Energy, the private entity overseeing the transmission and distribution network of the Puerto Rico Electric Power Authority (PREPA), has charged the Puerto Rico Energy Bureau (PREB) with operating outside its legal jurisdiction in managing public utilities.
In a filing dated Nov. 1, LUMA Energy presented supporting documentation for its assertion that requiring prior approval from the energy regulator to reallocate funds for expenses not exceeding 5% of an approved budget is unreasonable and inconsistent with its operational and management agreement. Furthermore, it objects to needing a budget amendment when expenditures fall within the confines of the 2017 rate order and do not necessitate a rate review process.
LUMA has expressed its dedication to upholding the transmission and distribution system in a financially responsible manner.
“The current 5% line-item variance threshold established by this Energy Bureau, necessitating pre-approvals for spending variances or reallocations within sanctioned budgets, as well as the deadline for budget amendments and reallocations for the third quarter, present considerable logistical, administrative, and regulatory challenges,” stated the private operator.
LUMA’s contentions are part of a continuing dialogue regarding the organization’s budget.
As mentioned by the STAR, a prehearing is scheduled for this Friday as part of an investigation initiated by the PREB concerning LUMA’s allegations that PREPA has not adequately funded its service accounts as mandated by the operation and management contract.
This prehearing was commissioned by examiner Scott Hempling, a Georgetown University Law Center professor and attorney specializing in public utility law, who has served as an advisor to the PREB.
