Puerto Rico board submits third plan in attempt to restructure power company debt of $10 billion
Lawyers have filed a new plan for restructuring $10 billion in debt owed by Puerto Rico’s power company in the latest attempt to end a lengthy bankruptcy process marked by acrimonious negotiations
SAN JUAN, Puerto Rico — A new plan for restructuring $10 billion in debt owed by Puerto Rico’s power company was filed late Friday in the latest attempt to end a lengthy bankruptcy process marked by acrimonious negotiations.
The plan filed by a federal control board that oversees the U.S. territory’s finances would cut the debt of Puerto Rico’s Electric Power Authority by nearly 80% to some $2.5 billion.
“We hope that we will be closing not just the chapter but most of the book on the largest public sector bankruptcy in the United States,” Robert Mujica, the board’s executive director, said in a meeting with reporters.
If confirmed by a federal bankruptcy judge, the plan would mean an increase in already high power bills for many people on the island if the new charge is approved by Puerto Rico’s Energy Bureau.
On average, residential bills would increase by nearly $9 a month and commercial bills by $35.
Some 1.4 million customers would not pay the new charge if they consume less than 425 kilowatt-hours a month, the plan states. The average monthly power consumption for a U.S. residential customer is about 886 kilowatt-hours, according to the U.S. Energy Information Administration.
Recent electric bill increases have been criticized by many on the island of 3.2 million people hit by power outages ever since the grid was razed by Hurricane Maria in 2017, with crews only recently starting to rebuild it.
The newest debt restructuring plan is backed by companies that hold more than 40% of uninsured bonds issued by Puerto Rico’s
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