Fiscal Board Supports LUMA's Appeal to Halt Case Transfer to Puerto Rico Courts

The Fiscal Oversight and Management Board (FOMB) has officially backed LUMA Energy's request to pause the transfer of lawsuits concerning the extension of its contract back to Puerto Rico's courts. The Board warns that invalidating the contract extension could lead to 'chaos' in the electrical system and leave Puerto Rico without a qualified private operator for the grid.

FOMB's Position

In a filing with the Federal District Court for Puerto Rico, the FOMB, acting on behalf of the Puerto Rico Electric Power Authority (AEE) under PROMESA, supported LUMA's motion to stay the remand while the company considers appealing to the First Circuit in Boston. The Board argues that the appeal presents unique issues related to the scope of regulatory powers under PROMESA and that denying the stay could cause irreparable harm to LUMA.

Potential Consequences

The FOMB emphasizes that if the lawsuits succeed in invalidating the contract extension, it could dismantle the current legal, fiscal, and operational framework governing the electrical system, terminating private operation without an apparent qualified replacement. Such a scenario could generate 'chaos' in Puerto Rico and conflict with the certified fiscal plan of the AEE and local legislation mandating private operation of the electrical system.

For more details, refer to the original article: Junta Fiscal se une a LUMA y pide frenar devolución del caso a tribunales de Puerto Rico