Energy bureau answers questions about the LUMA contract

The Committee on Economic Development, Planning, Telecommunications, Public Private Partnerships and Energy, chaired by the Representative, Luis Raúl Torres Cruz, today received the appearance of Edison Avilés-Deliz, Chairman of the Puerto Rico Energy Bureau, as part of the hearings public present at the research into the LUMA Energy Contract

House Resolution 136 is pursuing a broad process of investigation into the Electric Power Authority (PREPA) privatization contract that grants the authority to operate, manage, maintain, repair and restore Puerto Rico’s power grid for a period of 15 years to LUMA.

On the second day of the public hearings for the measure, Avilés Deliz received broad responses to questions about his participation in the LUMA contract evaluation and award process. “The role of the Energy Bureau with regard to PREPA’s transactions is limited. Therefore, once the Public Private Partnerships Authority (AAPP) has completed the procedures entrusted to it, the Energy Agency will assess whether the proposed contract is in line with public energy policy and the current energy regulatory framework, ”said Avilés in his introductory mode.

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As part of the tasks of the Energy Agency, during the evaluation process of the LUMA contract, the issue of the Energy Compliance Certificate, which according to the Avilés monument is defined as a certificate issued by the Energy Agency with every PREPA transaction, stands out . , confirming that the preliminary contract complies with Puerto Rico’s energy policy law and its regulatory framework.

The President of the Office also explained details of the legal and procedural framework applicable to the alliance contract. Shortly afterwards, he received questions from Deputy Torres Cruz, who was concerned about Avilés’ participation in the Alliance Committee at the same time as he chairs the Energy Bureau. As evidenced by the cited official’s presentation, the Bureau is a specialized independent entity charged with regulating, overseeing and ensuring compliance with the government of Puerto Rico’s public energy policies.

“In accordance with Law 29-2009, the Chairman of the Supervisory Board was appointed by the Board of Directors of the AAPP to the Alliance Committee because of the knowledge and experience related to the envisaged alliance. Their participation is not prohibited or prevented by Law 120-2018. The law expressly envisages that the Bureau provide the technical, expert, financial and human resources that the AAPP requests to ensure the success of any PREPA transaction, ”said Energy Bureau Chairman Edison Avilés.

In turn, Representative Torres Cruz said that in order to answer questions about a potential conflict of interest in Avilés’ participation in the LUMA contract, a hearing will be held next Friday, February 26 at 10:00 AM. “There will be a vote for a possible award for government ethics,” said Torres.

After presenting several cases regarding officials participating in different stages of the public-private partnership process, Avilés said that “it is necessary to clarify that (their participation in the evaluation and award of the contract) does not constitute a conflict of interest under the applicable regulations of Law 29-2009 ”. The explanatory memorandum also indicates that, in order to avoid conflicts of interest that could arise by the members of the Alliance Committee, Law 29 provides that “they may not be affiliated with or have direct or indirect economic interests with any Proponent or Contractor”, explains Avilés, who assures them that they have no economic interest in LUMA.

The Partnership Committee was appointed by the Board of Directors of the AAPP and appointed to the Executive Director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the Executive Director of PREPA, Engineer Ralph Kreil Rivera, as a member of PREPAs Board of Directors, Mr. Edison Avilés Deliz, Chairman of the Energy Bureau, and Jorge Morales, Property Management Director of the Puerto Industrial Development company.

The public hearing with sign language interpreters was broadcast via the Facebook page of the Puerto Rico House of Representatives.

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