---
On Tuesday, LUMA Energy revealed that it has finalized the competitive bidding process to initiate the next stage of its smart meter program, which will enable the deployment of approximately 1.5 million devices across the island without any rate hikes for customers.
“This is a pivotal move in our efforts to revamp Puerto Rico’s electrical infrastructure into a more dependable, robust, and sustainable system,” stated LUMA President and CEO Juan Saca in a press release. “The rollout of these smart meters is crucial to our overarching aim of enhancing customer experience and positioning Puerto Rico as a frontrunner in electric system modernization within the Caribbean.”
Saca pointed out that the appointed supplier is Itron, a smart meter technology firm based in Washington state, which will provide Puerto Rico with enhanced network intelligence capabilities. He mentioned that the installation will engage several local businesses, creating over 150 direct and indirect employment opportunities.
Saca highlighted that Itron’s technology encompasses smart meters, a new communications network featuring redundancy, and analytical tools for improved detection of service interruptions, as well as smoother integration of renewable energies and distributed resources. This system will empower customers to manage their energy use more effectively while enabling LUMA to respond swiftly to service outages and identify any system tampering.
Itron’s technology will mesh with current infrastructure and comes with a 15-year warranty.
“It’s a privilege to collaborate with LUMA on this landmark initiative aimed at grid modernization,” expressed Itron President and CEO Tom Deitrich. “With Itron’s smart meters, cutting-edge software, and established network platform, LUMA is laying the groundwork for enhanced reliability, resilience, and improved customer service, even amidst severe weather events.”
Meter installations will commence in the San Juan area and expand throughout the island over the next three years. During project implementation, field teams and subcontractors, primarily local, will prioritize safety and quality during installations, Saca noted.
LUMA is seeking a quarterly rate adjustment due to rising fuel costs.
Later that same day, LUMA announced it had submitted the quarterly factors for the fuel cost adjustment (FCA) and power purchase charge (PPCA) to the Puerto Rico Energy Bureau (PREB), which may result in an increase of approximately 2.3 cents per kilowatt-hour in the average bill for residential users.
The company indicated that the rise stems from increased fuel prices between June and November, due to heightened energy demand during periods of unusually high temperatures and the use of more costly fuel by Genera PR for electricity production. LUMA stressed that the adjustment is unrelated to its operations or any direct alterations made by them, as the company doesn’t control generation or fuel expenses, nor does it gain from rate increases.
“We understand how disheartening it can be for our customers to experience a rate hike,” remarked Mario Hurtado, LUMA’s chief regulatory officer, in a written statement. “Although LUMA is not accountable for generation or fuel costs, we are devoted to addressing the inherited challenges and striving to establish a cleaner and more sustainable energy future.”
LUMA confirmed it will persist in providing payment plans, government assistance, and subsidized rates for qualifying customers encountering payment challenges.
