Why privatizing Puerto Rico's electrical system will fail
Why privatizing Puerto Rico's electrical system will fail
BY TOM SANZILLO, OPINION CONTRIBUTOR — 04/07/19 04:00 PM EDT 41 THE VIEWS EXPRESSED BY CONTRIBUTORS ARE THEIR OWN AND NOT THE VIEW OF THE HILL
On Tuesday, at a hearing on rebuilding and privatizing Puerto Rico’s electrical system, I will tell the House Committee on Natural Resources why the current privatization plans are likely to fail.
The hearing comes amid controversy, including the ongoing debate over giving additional disaster aid to Puerto Rico. That is coupled with a February court ruling that struck down the way appointments are made to the fiscal control board that oversees the island’s recovery from its fiscal crisis.
It should be clear, to anyone paying attention, that billions of dollars of investment are needed to restore and upgrade Puerto Rico’s electrical system, which continues to run mostly on oil-fired power plants. Further, the system relies heavily on an extensive network of long-distance transmission lines that are vulnerable to severe storms.
The Puerto Rico Electric Power Authority’s (PREPA) fiscal plan, approved by the federal Financial Oversight and Management Board, calls for $7 billion over five years in federal investment as a “floor” on funding needed for resilience; other estimates put that floor significantly higher. Without adequate investment, the next major storm in Puerto Rico will cost yet more lives and further delay economic recovery.
More:
https://thehill.com/opinion/energy-environment/437747-why-privatizing-puerto-ricos-electrical-system-will-fail
