By The Star Staff
The judge overseeing the Puerto Rico Electric Power Authority (PREPA) bankruptcy on Monday extended the litigation stay to Nov. 13 following the request of the mediation team handling talks between the bondholders and the Financial Oversight and Management Board.
The stay was slated to end Monday, and if U.S. District Judge Laura Taylor Swain did not extend it, then the bondholders would have been free to go to court to seek a receiver for PREPA and an increase in utility rates. The order comes after the oversight board sought amendments to the utility’s debt adjustment plan.
The “Notice and Report” requests that the court extend the litigation stay imposed by the Extended Stay Order for 30 days, to and including Nov. 7, 2024.
“The Court having found the Mediation Team provided adequate and appropriate notice of the Notice and Report under the circumstances and that no other or further notice is required; and the Court having found good and sufficient cause exists for granting the relief set forth herein; it is hereby ordered that: The litigation stay imposed by the Stay Order is hereby extended through and including November 13, 2024, unless otherwise ordered by the Court,” the ruling says.
Throughout the duration of the stay period, the parties are ordered to meet with the mediation team, the judge said.
The mediation team was directed to file a report regarding the status of mediation discussions and whether any modification of Monday’s stay order is recommended prior to the expiration of the stay period.
Meanwhile, LUMA Energy rejected public calls for customers to stop paying their electric bills but said it recognizes the public’s frustration.
“However, decades of neglect by the previous operator cannot be corrected in just 40 months,” the private operator of the island’s electric power transmission and distribution system said. “It is also an undeniable fact that LUMA has never raised rates. To be clear, all previous bill increases are related to adjustments to the Fuel Cost Adjustment component of the bill, which are used to cover fuel costs (the most expensive line item in energy for our customers), and adjustments to the Power Purchase component, which cover the costs of energy produced by Independent Power Producers (PPCA), including Ecoeléctrica, AES, and renewable energy generators.”
“We would like to remind our customers that LUMA does not generate energy, nor do we purchase fuel, nor do we negotiate the price of fuel used for power generation, and LUMA does not benefit from any fuel-related increases on customers’ bills,” the grid operator said.
“Most LUMA customers pay their bills every month, and it is irresponsible for certain groups to ask them to stop paying their bills, as this would be detrimental to their own electrical service and could impact our ability to manage and operate the system,” LUMA added. “To be clear, aside from a small monthly charge ($4 per month for most residential customers), customers only pay for the energy they consume. We encourage our customers who are unable to pay their bill to consult with a service representative who can discuss payment plans and help them see if they qualify for government programs that may help them with their energy bills.”