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Governor Jenniffer González Colón’s recent executive order empowers the newly formed Office of the Energy Czar to spearhead initiatives aimed at integrating new base generation sources through public-private partnerships, effectively diminishing the authority of the Puerto Rico Energy Bureau (PREB) in these matters.
With multiple laws requiring the island to transition to 100% renewable energy by 2050, and in the wake of PREB’s approval of an Integrated Resource Plan, the energy regulator commenced the procurement of approximately 3,750 megawatts (MW) of renewable energy along with 1,500 MW of energy storage, segmenting the process into six phases. However, challenges have arisen: PREB terminated the Tranche 3 solicitation in October 2024 and later initiated Tranche 4, which yielded only one successful project—a 50 MW battery storage initiative. To manage the tender processes, PREB engaged an external manager.
Upon taking charge, González Colón appointed Josué Colón Ortiz, the previous director of the Puerto Rico Electric Power Authority (PREPA), as the energy czar. He was also designated as the head of the Public-Private Partnerships Authority. The executive order released on Friday officially launched the Office of the Energy Czar. Colón is responsible for overseeing LUMA Energy, the private operator managing PREPA’s transmission and distribution network, with plans to potentially terminate the contract with the troubled consortium.
As the energy czar, Colón Ortiz will wield broad powers over both LUMA and Genera PR, the private operator of PREPA’s traditional power plants, effectively enabling him to affect decisions by the PREB and other organizations.
The czar will “utilize the authority defined in Act 76-2000, including the supremacy granted under Article 14, to address and adjudicate any conflicts, disputes, or defaults involving regulated entities (such as PREPA’s private operators) or any agency of the Executive, including AAFAF, PREB, PREPA, and COR3,” as stated in the executive order. “This authority guarantees that the Executive Order surpasses any inconsistent provisions of general or specific law, regulation, or actions by involved parties.”
AAFAF and COR3 signify the Puerto Rico Fiscal Agency and Financial Advisory Authority and the Center for Recovery, Reconstruction and Resilience, respectively.
The executive order designates the czar with the responsibility to act on behalf of the governor to manage, coordinate, and supervise the revitalization and modernization of the electrical grid, aligning with the order’s goals. The czar’s powers in energy emergency situations will take precedence over various permitting laws and regulations, including Act 161-2009 and Act 118-2024. His chief duties will include steering efforts for the reconstruction and modernization of the electrical infrastructure and acting as a coordinator and intermediary between the island’s government, PREPA, and federal agencies such as the Federal Emergency Management Agency (FEMA) and the Department of Energy (DOE).
Colón Ortiz will enhance cooperation between FEMA, COR3, the federal Department of Housing and Urban Development, the DOE, PREPA, and all other state or federal entities overseeing federal funding for the reconstruction and modernization of Puerto Rico’s electrical system.
His position will entail advocating for the establishment of new base generation sources through public-private partnerships, documenting compliance or instances of non-compliance by operators, and identifying any lapses or negligence that could hinder the appropriate use of public resources.
Furthermore, Colón Ortiz will take necessary actions to identify new operators for the transmission and distribution network, influence strategic decisions, harmonize various governmental agendas, and propose or execute initiatives aimed at improving energy management and efficiency policies.
He will also provide counsel to the central government regarding the development and implementation of public energy policy, supplying the analysis and information necessary for the effective evaluation and oversight of processes related to the electrical system, while fostering a cohesive energy policy throughout the island government to improve coordination and execution across all commonwealth and federal components associated with the energy sector.
