LUMA Energy is proposing a credit program aimed at helping residential housing developers offset potential increases in construction costs tied to updated engineering standards required by the company, according to information reported by Metro Puerto Rico.
Reinaldo Baretty Huertas, LUMA’s director of engineering standards, said the proposed credits would be tied to a project’s contribution requirements, including the electrical load or capacity requested, as well as construction-related operational costs.
“The approach would be to allow residential projects to maintain their viability, so there is no extraordinary cost impact from the modified standards that could place the project at risk,” the engineer said following his participation in an infrastructure education forum hosted by the Asociación de Constructores de Puerto Rico.
Baretty Huertas clarified that the proposed reductions would not translate into lower electricity bills for customers, as the savings would apply to the upfront construction phase of the projects.
“It depends on how much more is being requested in terms of standards, which would represent a different proportion in each case,” he said regarding how the credits would vary from project to project.
The engineering standards required for new projects were originally established by the Puerto Rico Electric Power Authority, commonly known as PREPA, and later amended by LUMA. The standards include specifications related to material properties, design criteria, dimensions and installation methods for reconstruction projects and operational infrastructure.
LUMA said the updated requirements are intended to improve the efficiency, safety, reliability and resiliency of Puerto Rico’s electric grid, while also ensuring compliance with codes established under agreements between PREPA and the Federal Emergency Management Agency.
