Energy Bureau Threatens Genera With Fines Over Delayed ‘Peaker’ Units

Puerto Rico’s Energy Bureau (NEPR) issued a Resolution and Order requiring Genera to show cause why it should not face administrative penalties for missing the deadline to complete a 268-megawatt “peaker” backup generation project.

The Resolution gives Genera 20 days to respond and request an adjudicative hearing if it chooses to. The project was originally authorized in 2023, and the Bureau later allowed Genera to take over the procurement process after the company represented that it could complete it faster, more cheaply and more efficiently. After reviewing reports submitted by the company, however, NEPR had previously concluded that the project had significantly deviated from its original cost and schedule projections, and in September 2024 ordered that the work be completed no later than the end of the second quarter of 2026. That determination was later upheld by the Court of Appeals.

The Resolution states that monthly reports submitted by Genera after June 2026 show the project was not completed within the established deadline. The company attributed the delay to factors related to permitting, coordination with LUMA Energy, matters tied to FEMA, interconnection requirements and other elements it said were outside its control — but the Bureau concluded those explanations alone do not relieve a regulated entity from complying with a valid order.

“The Energy Bureau further determined that the alleged noncompliance involves infrastructure that directly affects the reliability and resilience of Puerto Rico’s electric system,” the filing states.

As part of the Order, the Bureau gave preliminary notice of its intent to impose an administrative penalty of $25,000 for each day of noncompliance, effective July 1, 2026, continuing to accrue until the company reaches full compliance with the Bureau’s orders. The Bureau emphasized, however, that the determination is preliminary and that Genera will have the opportunity to present evidence and arguments before a final determination is issued.

Genera PR said it is going to respond respectfully to the Bureau and will ask for a hearing.

The peaker units themselves are already in Puerto Rico and in the process of being installed. Gov. Jenniffer González Colón toured Central Aguirre in Salinas on July 22, where she reviewed progress on the rehabilitation of Unit 1, the buildout of a battery energy storage system using Tesla Megapack units, and the installation of the peaker units — which officials said had already arrived on the island, with the broader project targeted for completion by the end of 2027.