The private operator of Puerto Rico's power grid announced on Monday that $65 million worth of upkeep and enhancement projects in the US territory have been deferred.
Luma Energy Halts Major Repair Projects, Citing Funding Shortfall
Due to budget constraints, some repairs have been postponed for at least a year. This decision has raised concerns about the already troubled grid and has led to a widespread outcry.
Several projects have been deferred, including the maintenance of over 100,000 light posts, fire mitigation efforts, and repairs on underground circuits, among other necessary improvements, AP reported.
Mario Hurtado, the head of regulatory affairs at Luma Energy, expressed concern about the suspended projects and their potential to cause more outages across the island. He plans to revive these projects next year.
Luma's suggested budget to Puerto Rico's Energy Bureau offers $1.3 billion for the entire electrical sector. The majority of the funds, 65%, are allocated to Luma, the company responsible for transmission and distribution.
Genera PR, the operator and maintainer of the grid, receives 32% of the budget, while the Puerto Rico Electric Power Authority receives 3%.
The budget focuses on allocating funds to enhance Luma's customer service, prioritize personnel safety, and support renewable energy projects.
Puerto Rico Power Outages
The company announced on Friday that there would be a delay in the disbursement of funds from the Federal Emergency Management Agency.
According to Hurtado, Luma has submitted around 400 projects for approval to enhance the energy grid, with approximately 100 of them receiving the green light.
The budget hearing coincides with the ongoing struggle of the island's 3.2 million residents, who continue to face regular power outages over six years after the devastating impact of Hurricane Maria, a Category 4 storm, on Puerto Rico.
The convergence of severe weather, seismic activity, and insufficient funding has impeded the progress of recovery initiatives.
During a scorching heat wave in mid-June, a widespread power outage plunged the capital, San Juan, and surrounding cities into darkness, affecting more than 340,000 customers.
Before the blackout, towns in central and southern Puerto Rico experienced a power outage lasting approximately five days due to a transformer collapse in early June.
According to Fox2Now, the company restored the service on June 9, with a few residents still experiencing sporadic outages last week.
During the weekend, Luma successfully transported a transformer by boat from San Juan to the southern coastal city of Ponce, and then delivered it to the nearby town of Santa Isabel.
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