Friday, August 19, 2016

Puerto Rican Consumers will have to pay for PR's Electric Co. Mismanagement and Corruption Debt

PREPA wants for PR consumers to pay for the mismanagement and corruption which has created a crisis the PR Electric Company. These are local decisions and not from the Puerto Rico Fiscal Board, which has not been instituted yet.
In the meantime, Lisa Donahue's contract, (contracted by PREPA to restructure the debt) has been raised to a total of $43,600,000.00. 
These are things that happen to US citizens in a neglected US Territory to which the US Congress has denied political power. MJ 

"If allowed to proceed, the initial 22 percent rate increase would be one of the largest in recent US history to be imposed on a state-wide or territory-wide basis."Carlos Nieves, District Council 9 Painters & Allied Trades

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Caribbean News Now
Puerto Rican business groups file legal challenge to hike in electricity rates
August 19, 2016

SAN JUAN, Puerto Rico -- A group of nine leading Puerto Rico industry and business associations are joining in an unprecedented legal challenge to a Puerto Rico Energy Commission (PREC) move to impose the first in a series of unlimited, "blank check" rate increases under the controversial debt-restructuring agreement for Puerto Rico Electric Power Authority (PREPA). 

If allowed to proceed, the initial 22 percent rate increase would be one of the largest in recent US history to be imposed on a state-wide or territory-wide basis. The June 2016 order by the Puerto Rico Energy Commission provided for a new surcharge to service the $9-billion PREPA debt restructuring. PREPA requested that the complete financial cost of the restructuring is passed to the Puerto Rico energy consumers plus an additional increase on the base rate.

Carlos Nieves, director of servicing, District Council 9 Painters & Allied Trades, said: "When we knew about the renewable energy surcharge and the related rates increases that will be imposed in Puerto Rico, equal to approximately 20 percent of their current rate, to back-up a $9 billion debt restructuring process of the power utility, we cannot give them our support and solidarity. Those kinds of things would not happen in the States. This seems to be an injustice being committed against 3.4 million of American citizens on the island."