{"database": "openregs", "table": "crs_reports", "rows": [["R49489", "Puerto Rico Electric Power Authority (PREPA): History and Finances", "2026-10-20T04:00:00Z", "2026-10-22T17:52:59Z", "Active", "Reports", "D. Andrew Austin", null, "The finances and operations of the Puerto Rico Electric Power Authority (PREPA)\u2014a public power utility owned by the Commonwealth of Puerto Rico\u2014have attracted serious concern for many years. High electricity prices and the unreliability of the electricity grid resulting from underinvestment in and poor maintenance of the island\u2019s generation, transmission, and distribution infrastructure have hindered the island\u2019s economy and the well-being of its residents. \nPublic corporations have been central to Puerto Rico\u2019s economic development and have issued most of Puerto Rico\u2019s public debt. In 2014, frustration with PREPA led Puerto Rico to enact an energy policy reform (ALIVIO; Act 57-2014). At the time, PREPA was struggling to pay its fuel costs. In August 2014, it reached an agreement with creditors to maintain its access to fuel and accepted an outside manager. Federal courts struck down a 2014 local bankruptcy law that sought to reduce PREPA\u2019s debts. In 2015, the Puerto Rican governor stated that its debts were \u201cunpayable.\u201d\nIn 2016, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA; P.L. 114-187) established a Financial Oversight and Management Board (FOMB or Oversight Board) and two processes (Titles III and VI) to restructure Puerto Rico\u2019s public debts, including the $9 billion PREPA owed. The Title III process draws on the U.S. Bankruptcy Code. The Title VI process resembles sovereign debt workouts. In July 2017, the Oversight Board rejected the existing agreement with creditors and initiated a Title III debt restructuring process. While major portions of the island\u2019s debts have been restructured, PREPA\u2019s debt restructuring process continues. \nIn September 2017, Hurricanes Irma and Mar\u00eda hit Puerto Rico and exposed widespread weaknesses in PREPA\u2019s operations. Most of the island remained without electric power for months afterward. In 2020, earthquakes and the COVID-19 pandemic created new challenges and delayed the debt restructuring process. Congress provided substantial funding for PREPA\u2019s recovery and rebuilding. The recovery and rebuilding effort of the island\u2019s energy infrastructure have involved many Puerto Rican public entities and several federal agencies. \nIn 2018, Puerto Rico enacted a measure to privatize PREPA\u2019s grid and its power generation assets. LUMA, a U.S.-Canadian joint venture, took over the grid in June 2020. In July 2023, Genera PR, a unit of New Fortress Energy, began operating PREPA\u2019s non-hydropower generation plants. Jenniffer Gonz\u00e1lez Col\u00f3n, Puerto Rico\u2019s governor since her January 2025 inauguration, has sought to end LUMA\u2019s contract, which engendered several lawsuits. LUMA claims it has made progress, but blackouts remain frequent. In July 2025, LUMA petitioned the Puerto Rican Energy Board (PREB) to conduct a new rate review. PREB issued a new rate tariff in April 2026.\nIn 2019, the Oversight Board negotiated a third proposed agreement within the Title III process with creditors and Puerto Rican officials, which envisioned swapping old PREPA debt for two sets of new bonds, special treatment for certain insured bonds, and a transition charge applied to all electricity consumers. In 2022, however, negotiations stalled. In December 2022, the Oversight Board proposed a plan offering $2.6 billion to creditors. In March 2023, the Title III district court held that creditors\u2019 claims were severely limited. In June 2024, a federal appeals court held that creditors had a secured interest in PREPA\u2019s net revenues. In March 2025, the Oversight Board issued a new proposal. Creditors asked to file an administrative expense claim that was denied, but has been appealed. In April 2026, the Title III court allowed a narrow claim to proceed to determine what net revenues PREPA had earned. In June 2026, the Oversight Board proposed another plan, which creditors rejected.\nIn August 2025, the President attempted to dismiss six of the seven Oversight Board members. A federal judge issued a restraining order, holding that the board members \u201chave never been properly removed from office.\u201d", "https://www.congress.gov/crs_external_products/R/PDF/R49489/R49489.6.pdf", "https://www.congress.gov/crs_external_products/R/HTML/R49489.html"]], "columns": ["id", "title", "publish_date", "update_date", "status", "content_type", "authors", "topics", "summary", "pdf_url", "html_url"], "primary_keys": ["id"], "primary_key_values": ["R49489"], "units": {}, "query_ms": 0.23598410189151764, "source": "U.S. government sources, plus a few identifier registries; each is listed on the methodology page", "source_url": "https://datadawn.org/methodology#data", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}