PREB says seven emergency units capable of adding more than 300 MW remain out of service, despite Genera having $17 million to fix them
As Genera PR seeks appellate review of Puerto Rico’s permanent rate order, the Puerto Rico Energy Bureau (PREB) on Thursday rejected claims that the private operator’s budget had been cut, asserting instead that regulators reallocated spending to maximize the use of federal funds and reduce pressure on customer rates.
Appearing before the House Government Committee, PREB Chairman Edison Avilés told lawmakers that the agency’s analysis distinguished between projects eligible for federal financing and those that must be covered through base rates. He emphasized that the Bureau’s determinations were grounded in evidence submitted by Genera during the adjudicatory process.
“There is a possibility that we identified project requests or payroll increases that did not proceed,” Avilés said. “But we also identified opportunities to use available federal funds instead of charging consumers through the tariff.”
Avilés noted that Genera, the operator of PREPA’s legacy power plants, operated with 12% to 14% fewer employees than budgeted between July 2023 and June 2025, a gap that led regulators to conclude that even the restricted payroll budget exceeded the company’s demonstrated spending capacity. Based on Genera’s staffing levels, the Bureau approved $67.8 million for payroll in fiscal 2026, $69 million for fiscal 2027, and $70 million for fiscal 2028. Regulators also rejected a proposed $20 million annual increase tied to a collective bargaining agreement that had not been finalized at the time of the rate review.
The hearing followed Genera’s assertion in a prior session that operational reductions would jeopardize repairs and maintenance across the generation fleet, undermining efforts to stabilize the island’s electric system. Committee Chairman Rep. Víctor Parés Otero said the panel is evaluating the metrics the Bureau uses to approve Genera’s budget and any financing mechanisms that could affect system reliability.
However, Associate Commissioner Antonio Torres countered that the permanent rate resolution was the product of a rigorous evidentiary process, including 23 days of hearings held between November 12 and December 19, 2025. He said the Bureau approved maintenance projects essential for safe operations, contractual obligations, and other operational needs that did not qualify under federal capital restoration categories.
To cover these expenses, the Bureau authorized $53.5 million for fiscal 2026, $40.8 million for fiscal 2027, and $54.6 million for fiscal 2028. Regulators excluded 167 projects, totaling approximately $252.8 million, from base rates because they were eligible for funding through FEMA or the U.S. Department of Energy.
“The Bureau’s analysis was limited to determining, based on the record, whether a reasonable path existed to secure federal funds before passing costs to ratepayers,” Torres said. “This is aimed at reducing the burden on consumers.”
Avilés also announced that the Bureau will investigate seven emergency generation units, or “peakers,” that remain out of service despite Genera having a $17 million maintenance budget for the equipment. If operational, the units could contribute more than 300 megawatts to the grid. In response to questions from Rep. Denis Márquez Lebrón, Avilés reiterated that Genera has sufficient budgetary resources to prevent generation shortfalls and reduce load shedding.
Lawmakers participating in the hearing included Reps. Luis “Junior” Pérez, Denis Márquez Lebrón, Ángel Fourquet Cordero, Pedro “Pellé” Santiago Guzmán, and María de Lourdes Ramos Rivera.
