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prima:Risk of a “death spiral” for the electricity system looms with dramatic proposed rate increases

A report by economist Ramón Cao warned that consumers will not be able to sustain the requested adjustment, leading to greater migration to private solar systems

September 11, 2025 - 3:21 PM

The rate increase could bring customer bills to an average of about 40 cents per kilowatt hour. (Carlos Rivera Giusti/Staff)

When deciding on the request to review the base rate, the Energy Bureau (PREB) will have the opportunity to prevent the phenomenon of the “death spiral” that would occur in the electric system if the increases proposed by LUMA Energy, Genera PR, and the Puerto Rico Electric Power Authority (PREPA) are accepted, warned economist Ramón Cao García in an analysis commissioned by the Institute for Competitiveness and Economic Sustainability (ICSE).

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