Puerto Rico's Power Grid Crisis: $65 Million in Maintenance Deferred

Puerto Rico's power grid operator, Luma Energy, has deferred $65 million worth of maintenance projects due to budget constraints. This move could exacerbate the island's already unstable power supply, leading to more outages. The deferral has sparked outrage, with officials calling for accountability.

The private operator of Puerto Rico's power grid, Luma Energy, confirmed on Monday the deferral of $65 million worth of crucial maintenance and improvement projects due to budget constraints, putting at risk the already troubled grid — and sparking a widespread outcry.

Among the deferred projects are the maintenance of over 100,000 light posts, fire mitigation efforts, and repairs on underground circuits. Luma Energy's head of regulatory affairs, Mario Hurtado, told The Associated Press that these suspensions could lead to more outages across the island.

In a budget hearing on Friday, Hurtado said the company had to prioritize other tasks based on "professional judgment," considering the risks involved as acceptable given their resources. The proposed budget to Puerto Rico's Energy Bureau includes $1.3 billion for the entire electrical sector, with portions allocated to Luma, Genera PR, and the Puerto Rico Electric Power Authority.

The announcement has triggered anger among residents and officials. Jesús Manuel Ortiz, a member of the House of Representatives, called Luma's decision to suspend crucial tasks 'unacceptable,' highlighting the company's ongoing failures and the lack of governmental oversight. The Federal Emergency Management Agency has delayed funds disbursement, with only about 100 of 400 submitted projects approved.

This budget hearing comes amidst frequent power outages as the island struggles to recover from past natural disasters like Hurricane Maria. A massive blackout in mid-June left over 340,000 customers in key locations without power during a heat wave. Puerto Rico's Governor Pedro Pierluisi has activated the National Guard and ordered an investigation into the recent blackout, with the Energy Bureau also seeking plans to stabilize the grid.

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