Power to the People By: Pedro Cruz
After and earthquakes while navigating a bankruptcy process, Puerto Rico people face now constant surving hurricanes interruptions of energy services. The situation has worsened since last summer the transmission and generation transitioned to a private entity, LUMA. The root of the problem is the idea that it is better to give a concession to the private sector rather than cleaning a highly politicized Puerto Rico Electric Power Authority (PREPA). If the main problem with PREPA inefficiencies were partisan politics, the solution would be to get rid of politicians not paying to give away public assets. This privatization approach is plagued by repeating mistakes from the past and adding new ones.
$4 billion for ten years, which was the highest water contract awarded in the Americas. The short-lived agreement lasted 18 months, with ratepayers carrying the burden of the mistake. Opposed to the LUMA contract, the Suez contracts included a commitment to investing in infrastructure and keeping up with regulations. The pro-privatization government learned that this kind of contract would scare future privatizers; therefore, it does not require LUMA to make any upfront capital expenditure. The Agreement with LUMA included a liability waiver provision that exempts the privatizing corporation of responsibility in the case of ordinary or gross negligence. That could put the Island in a vulnerable position next time a hurricane or earthquake impacts the grid. Since LUMA took over the system, ratepayers have been experiencing service interruptions. To make things worse, they have failed to provide accurate communication regarding the cause of disruption in service as PREPA used to do.
Puerto
Rico
has
had
bad
experiences public utilities. The failure of privatizing the Puerto Rico Aqueduct and Sewer Authority is the best example. In 2002, the government granted Suez Water a concession for managing the system, at privatizing
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