Wednesday, May 29-4, 2019 - // no. 005
Puerto Rico and the Caribbean
www.theweeklyjournal.com
Agriculture industry seeks Revival P14 Gov’t IMPROVES Permit GRANTING PROCESS P6 Tariff War Could Affect Auto Imports P16
Natural gas the recipe to mitigate energy bill increases? The agreement with PREPA’s bondholders causes concern over hikes in energy rates
T Giovanna Garofalo
Self-portraits explore a woman’s decolonization P18
ggarofalo@wjournal.com
@giopgarofalo
he new restructuring support agreement (RSA) for the Puerto Rico Electric Power Authority (PREPA) raises concerns over increases to energy rates, while provoking a rise in interest on self-sustainable energy generation, free from PREPA’s looming hikes. The Center for a New Economy (CNE), an independent and nonpartisan policy think tank, released an analysis of the RSA, with major findings and recommendations.
Most noticeably, the CNE observed that the RSA establishes a transition charge that will be used to pay PREPA’s new bonds. This charge will apply to clients that generate their own electricity, unless they are “completely and permanently” independent from PREPA. “The transition charge is designed to increase over time, from 2.768 c/kWh (cents per kilowatt hour) during fiscal year 2021, up to a cap of 4.552 c/kWh during fiscal year 2044 and thereafter,” the group informed. This charge creates a scenario where clients GO TO PAGE 4