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Restructuring PREPA’s debt would imply a severe bill increase for residential and commercial customers

A document related to negotiations between the Board and bondholders reveals that an average household could see an annual increase of over $1,000, and for industries, it could be up to millions of dollars

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The PREPA Adjustment Plan proposed by the Fiscal Oversight Board is based on a fixed monthly charge, and an additional charge for consumption that will be applied to the electricity bill and that would be applied until the year 2051. (Ramón “Tonito” Zayas)

The main reason for the Oversight Board to abandon the so-called fixed connection charge it negotiated months ago with the bondholders of the Puerto Rico Electric Power Authority (PREPA) was the increase in the electricity rate for middle-class families by up to $3,600 a year and up to $2.8 million a year for businesses and industries in Puerto Rico. Instead, the entity decided to submit the PREPA Plan of Adjustment (POA-PREPA) imposing a 48.5 percent cut to these creditors.

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