Puerto Rico’s Outdated Energy Infrastructure

Implementation risks remain throughout, but the government has determined that inaction is not an option.

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The Puerto Rico Electric Power Authority (PREPA) was created by law in 1941 (Act 83-1941). The utility is the sole retail energy service provider in Puerto Rico and is one of the largest public power utilities in the United States, based on the number of customers served. It operates an electrical system in a challenging environment that is mountainous and isolated; is located in the tropics, specifically Hurricane Alley; and has dense tropical vegetation that challenges any regular maintenance program. It serves approximately 1.4 million customers (residential, commercial, and industrial) and has annual revenues of approximately $3.2 billion. Over time, multiple internal as well as external circumstances and events led PREPA into its current state of insolvency, operational deficiencies, highly deteriorated and aged infrastructure, and ongoing impacts to the environment of the island.