The Energy Bureau rejected this Thursday the increase of 4.1 cents per kilowatt hour (kWh) for the month of September in the cost of electricity.
The PREB maintained in a resolution that on August 14, LUMA Energy indicated that it had a deficiency of $92.7 million in collections for fuel purchases and an excess of $23.5 million in collections for energy purchases during the month of July. Because this is a difference of more than $20 million, LUMA Energy requested that you take note of the above and take into consideration the increase in the cost per kilowatt hour.
“The Energy Bureau TAKES KNOWLEDGE of the Motion of August 14. Regarding the deviation of the estimates for the purchase of fuel and purchase of energy, NOTHING TO PROVIDE at this time,” read the resolution.
PREB Resolution by Taiyania K. Rosado Pagan on Scribd
According to the information provided by Genera, LUMA submitted revised calculations to the Puerto Rico Energy Bureau (NEPR) that reflect higher fuel costs and an increase in the use of expensive diesel for generation in the month of July that could cause an additional adjustment in fuel cost of approximately four cents per kilowatt hour (kWh).
“It is important to remember that LUMA does not generate electricity or determine the impact fuel costs have on customer rates. The final decision on electricity rates is made by PREB. LUMA’s sole responsibility is to calculate fuel costs based on the information provided by the generation operators,” the consortium said in written statements.
Earlier, Governor Pedro Pierluisi said that the increase is not justified.
According to Pierluisi, although generators that use diesel fuel were used to meet the demand for generation, there are savings due to the entry of emergency generators approved by the Federal Emergency Management Agency (FEMA).
“For a couple of months we have basically been using the temporary generators that FEMA has provided us. Those who are currently in Palo Seco, who generate 150 megawatts without interruption, and the cost of operating these generators and paying for the fuel that is burned there, which is natural gas, is paid by FEMA. What I am saying is that (the proposed increase) I take it with suspicion. I want the Bureau to scrutinize well because I know that we have had some savings and the increase should be the last alternative, ”he added.
LUMA claimed that the request is due to a difference in the adjustment factors.
The consumer representative before the Governing Board of the Electric Power Authority (AEE), Tomás Torres Placa, explained that one of those factors is the increase in oil. According to Torres Placa, the Energy Bureau would make a decision on the petition at the end of August.
