The U.S. First Circuit Court of Appeals in Boston has denied LUMA Energy’s request to halt a lawsuit filed by the Government of Puerto Rico that seeks to invalidate the company’s supplemental contract to operate the U.S. territory’s power transmission and distribution system. The ruling marks another legal setback for LUMA, which has repeatedly sought […]
The U.S. First Circuit Court of Appeals in Boston has denied LUMA Energy’s request to halt a lawsuit filed by the Government of Puerto Rico that seeks to invalidate the company’s supplemental contract to operate the U.S. territory’s power transmission and distribution system.
The ruling marks another legal setback for LUMA, which has repeatedly sought to keep the dispute in federal court and to prevent the litigation from proceeding in Puerto Rico’s judicial system.
The controversy stems from a May decision by U.S. District Judge Laura Taylor Swain, who determined that lawsuits filed by the Government of Puerto Rico, the Puerto Rico Electric Power Authority (PREPA), and the Public-Private Partnerships Authority (P3A) must return to the island’s courts. Swain concluded that the claims challenging the validity of LUMA’s contract extension fall outside the scope of federal Title III jurisdiction.
Following that ruling, LUMA filed emergency motions before the First Circuit seeking a stay pending appeal, arguing that it would suffer irreparable harm if the cases proceeded in Puerto Rico while its appeal was still pending. Earlier this month, Swain rejected those arguments, finding that LUMA had not demonstrated a likelihood of success on appeal nor the type of harm that would justify suspending the proceedings.
The First Circuit’s decision now reinforces that conclusion, clearing the way for the litigation to continue in Puerto Rico’s courts even as the jurisdictional appeal remains unresolved.
The lawsuit, brought by the administration of Gov. Jenniffer González, asserts that the indefinite extension of LUMA’s supplemental agreement violated Puerto Rico law and fundamental principles of public administration. The government is seeking a judicial declaration that the extension is void, a move that could ultimately lead to the cancellation of LUMA’s contract.
The appellate court’s refusal to intervene keeps the high‑stakes dispute active in the local forum, where judges will now determine the validity of the contract extension—an outcome that could have significant implications for the future of Puerto Rico’s electric system and the private operator’s role in it.
