A new private company will take over power generation units owned by the Puerto Rico Electric Power Authority, the public corporation currently in charge of generating energy on the U.S. territory.
Under the terms of the new partnership, the Puerto Rican government has agreed to cover up to $15 million in transition costs to Genera PR, officials said. Additionally, the company will be paid a yearly fee of $22.5 million during the first five years. The fee will decrease after the fifth year, up to a minimum of $5 million per year. The exact amount will be determined by the number of power plants removed during the forfeiture process.
"We continue advancing the transformation that we all want," Gov. Pedro Pierluisi said in a statement."I'm confident that we are on the right track to give our people the reliable and affordable energy system they deserve." Genera PR can also receive up to $100 million in incentives if it achieves savings in operating costs and complies with occupational safety, environment and fuel purchase guidelines, Fermín Fontanés Gómez, executive director of the Puerto Rico Public-Private Partnerships Authority, said during the news conference.
Genera PR was one of two companies that submitted proposals to the PREPA, the agency in charge of administering the contract, during a two-year bidding process. Officials said that of the two companies interested, Genera PR was willing to provide services at a lower cost, compared to its competitor. Genera PR's priorities also line up with local policies, they said, including
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