Puerto Rico privatized its electricity production on Wednesday, selecting Genera PR to take over the operation and maintenance of state power generation units in the U.S. territory as part of an initial $22.5 million annual contract, the Associated Press reported. The announcement comes as the island struggles to rebuild its crumbling power grid amid chronic power outages blamed in part on what Gov. Pedro Pierluisi called “archaic and unstable” generation units. “I am sure that we are on the right track to give our people the reliable and affordable energy system that they deserve,” he said. Genera PR is a subsidiary of New York-based New Fortress Energy, which works closely with Shell Oil and other oil and gas producers. Genera also will handle contracts related to fuel purchases for the island’s 12 power facilities as part of a 10-year contract with Puerto Rico’s government. “Today is a historic day,” said Secretary of State Omar Marrero, who noted that recent hurricanes have revealed the deterioration and critical state of the island’s power grid. Puerto Rico’s generation units, some of them more than 50 years old, have suffered blackouts at rates five times worse than the industry average in recent years, producing less than half of the power the government had forecast.
