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Commentary: New Puerto Rico Utility Head, Same Challenges

Submitted by jhartgen@abi.org on

New leadership at Puerto Rico’s beleaguered electric utility may not be sufficient to compensate for missteps following Hurricane Maria that led to delayed work, recurrent blackouts and more than $500 million in contracts with untested companies now under federal investigation, according to a Reuters commentary. A management shakeup today will not by itself cure the chaotic and slow power restoration efforts two months after the hurricane struck the island, according to the commentary. So far, authorities say that only 54 percent of the power is restored. Federal and local leaders have struggled to repair the devastation wrought by the storm, which knocked out power to all 3.4 million residents and killed dozens of people. PREPA’s chief executive Ricardo Ramos stepped down unexpectedly last week, days after congressional hearings on the restoration. New interim head Justo Gonzalez, previously director of generation for the bankrupt utility, inherits a situation that even before the storm was far more complicated than that of any U.S. utility. He faces growing pressure from the U.S. Congress, federal regulators, the board overseeing Puerto Rico’s finances and longtime creditors to whom the territory owes $72 billion in debt.

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