A consortium of York Capital Management, NRG Energy Inc and ITC Holdings Corp have proposed investing as much as $3.5 billion in Puerto Rico's electrical infrastructure, Reuters reported yesterday. The island's electricity is supplied by struggling electric power authority PREPA, which has debt of around $9 billion and is due to present creditors with a business plan on Monday. The proposed investment would be for a total of $2.5 billion to $3.5 billion and would be subject to due diligence. PREPA, which provides electricity to Puerto Rico's roughly 3.5 million residents, charges consumers around double the average rate customers pay in the U.S. mainland. It is under pressure to convert from burning oil to generate power to generally cheaper and cleaner natural gas.
