Puerto Rico’s power utility disagrees with a proposal from bondholders to modernize the agency and fix its finances as a contract between the parties is set to expire at month-end, Bloomberg News reported on Friday. The bondholder plan to upgrade the utility’s infrastructure to lower fuel expenses would raise costs by about $3.1 billion over nine years, the agency said in an executive summary on Thursday. Lisa Donahue, chief restructuring officer for Prepa, has said that the investors’ plan may be premature in assuming full repayment of the agency’s $8.6 billion of municipal bonds and fails to meet environmental standards. “A successful restructuring of Prepa must be based on an executable plan that rightly balances the contribution of Prepa’s” creditors, customers and bond insurers, according to the executive summary. Prepa will release a restructuring plan this summer, Donahue told a commonwealth Senate committee last week.
