By The Star Staff
The executive order that Gov. Jenniffer González Colón recently enacted will give the newly established Office of the Energy Czar the authority to lead efforts to incorporate new sources of base generation through public-private partnerships, effectively removing significant power from the Puerto Rico Energy Bureau (PREB) regarding those initiatives.
In light of several laws mandating that the island obtain all its energy from renewable sources by 2050, and following PREB’s approval of an Integrated Resource Plan, the energy regulator has begun procuring some 3,750 megawatts (MW) of renewable energy and 1,500 MW of energy storage resources, dividing the process into six tranches. However, those efforts have encountered issues: PREB canceled the Tranche 3 tender in October 2024 and subsequently launched Tranche 4, which resulted in only one project -- a 50 MW battery storage project -- being selected. To manage the tenders, PREB hired an outside manager.
Upon taking office, González Colón appointed Josué Colón Ortiz, the former director of the Puerto Rico Electric Power Authority (PREPA), as the energy czar. He also was named the head of the Public-Private Partnerships Authority. The executive order issued on Friday formalized the creation of the Office of the Energy Czar. Colón is tasked with overseeing LUMA Energy, the private operator of PREPA’s transmission and distribution system, with plans underway to cancel the contract with the embattled consortium.
As energy czar, Colón Ortiz will possess extensive powers over both LUMA and Genera PR, the private operator of PREPA’s legacy power plants, effectively granting him authority to influence the PREB and other entities.
The czar will “exercise the authority outlined in Act 76-2000, including the supremacy legislated under Article 14, to resolve and decide any impasse, disagreement, or default involving regulated parties (such as PREPA’s private operators) or any entity of the Executive, including AAFAF, PREB, PREPA, and COR3,” the executive order reads. “This authority ensures that the Executive Order takes precedence over any inconsistent provisions of general or special law, regulation, or actions by involved parties.”
AAFAF and COR3 refer to the Puerto Rico Fiscal Agency and Financial Advisory Authority and the Center for Recovery, Reconstruction and Resilience, respectively.
According to the executive order, the czar is empowered to take actions on behalf of the governor to supervise, coordinate and oversee the reconstruction and modernization of the electrical system, in line with the order’s objectives. The czar’s authority concerning energy emergencies will supersede other permitting laws and regulations, including Act 161-2009 and Act 118-2024. His primary responsibilities will include leading initiatives for rebuilding and modernizing the electrical system, and acting as a coordinator and liaison between the island government, PREPA, and federal entities such as the Federal Emergency Management Agency (FEMA) and the Department of Energy (DOE).
Colón Ortiz will facilitate coordination between FEMA, COR3, the federal Department of Housing and Urban Development, the DOE, PREPA, and any other state or federal entities managing federal funds for the reconstruction and modernization of Puerto Rico’s electrical system.
His role will involve promoting the addition of new base generation sources through public-private partnerships, documenting compliance or non-compliance by operators, and identifying any failures or negligence that may adversely affect the proper use of public funds.
Additionally, Colón Ortiz will take necessary steps to identify new operators for the transmission and distribution system, influence strategic decisions, coordinate between various government agendas, and propose or implement initiatives to enhance energy management and efficiency policies.
He will also advise the central government on public energy policy development and execution, providing analysis and information needed to effectively evaluate and oversee electrical system-related processes, and promote coherent energy policy throughout the island government for better coordination and execution across all commonwealth and federal components related to the energy sector.