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On Thursday, Governor Pedro Pierluisi Urrutia presented his reply to a lawsuit initiated by the Financial Oversight and Management Board for Puerto Rico aimed at nullifying Act 10-2-24 (Act 10), legislation intended to encourage net metering.
Act 10 would prevent the Puerto Rico Energy Bureau (PREB) from altering the existing net metering and energy distribution framework until at least 2031.
The island’s administration affirmed its dedication to transforming Puerto Rico’s energy infrastructure and moving towards clean and renewable energy, as outlined in the public energy policy of Act 17-2019.
“From the outset, the Pierluisi Administration has been steadfast in defending the Government’s energy strategy and facilitating the modernization of the Puerto Rico Electric Power Authority (PREPA) towards a resilient, dependable, and sustainable energy system, while upholding the rate-setting authority of the Puerto Rico Energy Bureau (PREB),” remarked Omar Marrero Díaz, executive director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF in Spanish). “The Government asserts that Act 10 aligns with the energy policy of the elected Administration and is compatible with PREPA’s Certified Fiscal Plan, contradicting the unfounded claims made by the Oversight Board.”
Act 10 furthers the distributed generation goals outlined in PREPA’s Fiscal Plan, which calls for a decrease in large-scale generation while requiring an increase in distributed generation capacity through ongoing rooftop solar photovoltaic installations.
Marrero emphasized that solar conversion is crucial for PREPA’s long-term overhaul, delivering essential immediate generation capacity and alleviating PRESS’s overstressed and under-resourced generation system. He stated that overriding Act 10 would not only contradict the elected Administration’s wishes but also critically endanger PREPA’s capacity to fulfill its Fiscal Plan commitments.
Thus far, PREPA has complied with the Fiscal Plan’s Distributed Generation Mandate primarily because the existing net metering program offers incentives that foster ongoing solar conversion growth. Any changes to the net metering initiative that reduce or eliminate incentives for solar conversion would negatively impact PREPA’s ability to meet its Fiscal Plan requirements, the AAFAF leader highlighted.
As Puerto Rico grapples with unprecedented heat waves that strain PREPA’s fragile electrical system, it is essential for the government and the oversight board to promote and incentivize solar conversion alongside adherence to the Distributed Generation Mandate, Marrero remarked.
Contrary to claims made by the oversight board, the official reaffirmed that Act 10 does not aim to restrict the regulatory authority of the PREB. Instead, Act 10 intends to offer PREPA an additional avenue to expand its generating capacity while persisting with the development of long-term electrical generation initiatives.
Marrero asserted that invalidating Act 10 would not only threaten PREPA’s ability to fulfill its Fiscal Plan responsibilities but also obstruct essential increases in PREPA’s short-term generating capacity and undermine the Pierluisi Administration’s dedicated efforts to sustain and enhance PREPA’s transition to a modern, resilient, reliable, and sustainable energy infrastructure.
