The private operator of Puerto Rico’s power grid, Luma Energy, confirmed on Monday the deferral of $65 million worth of maintenance and improvement projects due to budget constraints. This decision, affecting repairs and improvements for at least a year, has triggered widespread concern over the already fragile grid.
Key deferred projects include maintenance of over 100,000 light posts, fire mitigation measures, and repairs on underground circuits. Mario Hurtado, Luma Energy’s head of regulatory affairs, warned that these delays could lead to increased power outages across the island. Despite the deferrals, Hurtado expressed hope to reinstate the projects next year.
During a budget hearing on Friday, Hurtado explained that Luma prioritized other tasks based on “professional judgment” and calculated risks. The lack of fire mitigation is particularly concerning as rising temperatures heighten the risk of wildfires disrupting power lines.
Luma’s proposed budget, submitted to Puerto Rico’s Energy Bureau, totals $1.3 billion for the entire electrical sector. Of this, 65% is allocated to Luma for transmission and distribution, 32% to Genera PR for grid operation and maintenance, and 3% to the Puerto Rico Electric Power Authority. The budget aims to enhance Luma’s customer service, personnel safety, and renewable energy projects.
The announcement of deferred projects has angered many residents, already frustrated by chronic power outages. Delays in funding disbursement from the Federal Emergency Management Agency have exacerbated the situation. Although Luma has submitted approximately 400 projects for approval to upgrade the grid, only about 100 have been approved.
This budget hearing comes as Puerto Rico, home to 3.2 million people, continues to grapple with frequent power outages more than six years after Hurricane Maria devastated the island. A combination of storms, earthquakes, and underinvestment has severely hindered recovery efforts.
In mid-June, a massive blackout affected over 340,000 customers in San Juan and nearby cities during a heatwave. Earlier in June, central and southern Puerto Rico experienced power outages for about five days following a transformer collapse. Although service was restored on June 9, sporadic outages continued.
Over the weekend, Luma transported a transformer from San Juan to Santa Isabel via the southern coastal city of Ponce. In response to the energy crisis, Governor Pedro Pierluisi activated the National Guard and ordered an investigation into the June 13 blackout. The Energy Bureau is also investigating and has directed Luma and Genera PR to submit a plan to stabilize Puerto Rico’s electrical network.