23 de abril de 2024

85°bruma

We are part of The Trust Project

Restructuring PREPA’s debt would imply a severe bill increase for residential and commercial customers

A document related to negotiations between the Board and bondholders reveals that an average household could see an annual increase of over $1,000, and for industries, it could be up to millions of dollars

December 20, 2022 - 12:51 PM

Archival note

This content was published more than 2 years ago.

The PREPA Adjustment Plan proposed by the Fiscal Oversight Board is based on a fixed monthly charge, and an additional charge for consumption that will be applied to the electricity bill and that would be applied until the year 2051. (tonito.zayas@gfmedia.com)

By Joanisabel González

Editora de Negociosjoanisabel.gonzalez@gfrmedia.com

The main reason for the Oversight Board to abandon the so-called fixed connection charge it negotiated months ago with the bondholders of the Puerto Rico Electric Power Authority (PREPA) was the increase in the electricity rate for middle-class families by up to $3,600 a year and up to $2.8 million a year for businesses and industries in Puerto Rico. Instead, the entity decided to submit the PREPA Plan of Adjustment (POA-PREPA) imposing a 48.5 percent cut to these creditors.