The exchange underscored growing uncertainty surrounding the island’s temporary generation plans.
Puerto Rico’s government increased its legal claim against New Fortress Energy to $100 million Monday, alleging the company’s repeated failures to supply natural gas have forced the island’s power system to rely on more expensive diesel and exposed consumers to potentially higher electricity costs.
The disclosure was made while some lawmakers at a Capitol hearing sharply questioned the government’s continued reliance on information provided by Genera PR, a subsidiary of New Fortress, which is supplying natural gas to the U.S. territory.
The amended federal complaint increased the damages sought in a suit filed last year from approximately $55 million to $100 million. The lawsuit, filed by the Puerto Rico Electric Power Authority (PREPA) through the Public-Private Partnerships Authority and the Third-Party Procurement Office, alleges ongoing breaches of multiple natural gas supply agreements and seeks damages, declaratory relief, and specific performance against New Fortress and related entities.
Under the second amended complaint, PREPA claims New Fortress failed to deliver contracted natural gas over extended periods, forcing generating units in San Juan and Palo Seco to burn diesel instead. The filing alleges more than $55.3 million in excess fuel costs tied to supply deficiencies between October 2024 and October 2025 and claims additional damages associated with more recent disruptions, including the September-October 2026 interruption involving the LNG vessel Amur River, which pushed the total claim to roughly $100 million.
The hearing also highlighted concerns over oversight of fuel deliveries and measurement of natural gas supplied to Puerto Rico. Representative José Aponte Hernández repeatedly challenged government officials about their reliance on information provided by Genera regarding how much LNG arrived aboard vessels serving the island.
“At this point in the game, are we still depending on and trusting what Genera says? It is the subsidiary of the one who has held us hostage on several occasions. And we still trust that?” Aponte said, referring to Genera’s relationship with New Fortress. He argued that regulators and government agencies appeared to be accepting information supplied by the company without sufficient independent verification.
Aponte also questioned who calibrates the meters used to measure natural gas deliveries and expressed concern that the government continues to rely on data from entities linked to New Fortress. He noted that Genera’s chief executive previously worked for New Fortress and argued that lawmakers should consider imposing additional controls over the company’s operations and contracts.
The amended complaint similarly points to Genera’s corporate relationship with New Fortress, noting that Genera is a wholly owned subsidiary of New Fortress Energy and acts as PREPA’s operating agent under certain fuel contracts. The lawsuit nevertheless identifies New Fortress as PREPA’s sole gas supplier under several agreements and contends the company has repeatedly failed to meet delivery obligations while improperly invoking force majeure defenses.
At the hearing, Energy Czar Josué Colón said there were sufficient grounds to evaluate terminating New Fortress’ contract and stressed that the company bore “absolute responsibility” for the maritime access issues surrounding the Amur River. He said Puerto Rico should continue moving forward with efforts to identify an alternative natural gas supplier.
Meanwhile, Third-Party Procurement Office head Osvaldo Carlo said the government is seeking to prevent the disputed fuel costs from being passed through to customers. According to the House hearing record, the federal litigation is intended to recover the costs associated with New Fortress’ alleged supply failures and ensure consumers do not bear the burden if the government prevails in court.
A separate discussion at the hearing focused on the proposed arrangement with Gothams Energy, with PIP Rep. Denis Márquez Lebrón raising concerns about whether the company could ultimately gain control of a pier in the Port of San Juan and its reported plans to source natural gas from New Fortress Energy. Márquez said his office’s review of documents and discussions between government entities suggested there had been conversations about allowing Gothams to establish permanent infrastructure at a San Juan dock and questioned whether the project would further expand New Fortress’ influence over Puerto Rico’s gas supply chain.
Responding to the concerns, Colón said the government has not contemplated granting Gothams control of a San Juan pier. He acknowledged that earlier discussions involved locating Gothams near New Fortress’ existing operations and that one alternative considered was obtaining gas supplied through New Fortress facilities. Colón added that the economics of the proposal have changed significantly because Gothams has substantially increased its pricing since those discussions began, making the project less attractive than when it was originally evaluated.
The exchange also underscored growing uncertainty surrounding the island’s temporary generation plans. Márquez noted that other energy initiatives previously viewed as critical have either stalled or been discarded and questioned what options remain if the Gothams proposal also falls through. Colón responded that negotiations with Gothams have not ended and that another bidder, Javelin Energy Partners, remains under consideration, leaving the government with at least one alternative source as it continues evaluating future fuel supply and temporary generation solutions.
The hearing took place without representatives from New Fortress in attendance. Committee Chairman José “Cheito” Hernández Concepción criticized the company’s absence and said lawmakers would move to compel its executives to appear at a future hearing under threat of contempt.
