The power operator accuses the administration of pursuing contract termination for political reasons.
San Juan — LUMA Energy struck back Monday against Puerto Rico’s government with a counterclaim accusing the administration of seeking to unwind its operating contract for political motives and warning that termination could expose the island to at least $4.5 billion in damages and operational costs.
The legal response came after federal Judge Laura Taylor Swain ruled that disputes over LUMA’s contract should be remanded to local courts.
In a statement accompanying the filing, the company said the government is using public resources to challenge the validity of an agreement that the administration itself extended and presented to the company as a legally binding contract in good standing.
LUMA put a price tag on the potential fallout: at least $4.5 billion, combining claimed damages with the costs associated with taking over operation of the island’s transmission and distribution system. The company also noted that the Fiscal Oversight and Management Board and other parties in the Puerto Rico Electric Power Authority’s bankruptcy proceedings have flagged the risks of abrupt termination, including potential disruptions to grid operations and the possible loss of federal reconstruction funds earmarked for the electrical network.
The company said the ongoing litigation creates uncertainty for approximately 1.5 million customers who depend on the grid and could undermine Puerto Rico’s standing with investors and businesses operating on the island.
LUMA also took direct aim at the administration’s lack of a contingency plan, arguing that the government has yet to present a concrete alternative for assuming transmission and distribution operations should the contract be cancelled.
The company said it would continue to press its case in court while maintaining operations and advancing grid modernization work.
The government has defended its legal actions as necessary to protect the public interest and ensure reliable electric service for Puerto Rican consumers.
