SAN JUAN, Puerto Rico — The private company responsible for managing the transmission and distribution of electricity across Puerto Rico has turned the tables on the territory’s government, filing a countersuit on Tuesday.
Luma Energy leveled serious accusations against the government, claiming officials acted “in bad faith and with intentional malice to the detriment of the public interest.” The company also charged that the government was abusing its authority “to illegally try to fulfill a campaign promise.”
This legal countermove comes six months after Puerto Rico’s government took Luma to court in an effort to void the company’s multimillion-dollar contract — a cancellation that Gov. Jenniffer González has made a repeated public pledge to pursue. González previously stated that the island’s power system had failed to improve with the speed, consistency, or effectiveness that had been promised.
The courtroom battle is just the latest complication for an island long plagued by persistent blackouts and an aging power infrastructure that was devastated when Hurricane Maria struck in September 2017. Adding to the crisis, Puerto Rico’s Electric Power Authority continues to be stuck in bankruptcy proceedings, unable to work through more than $9 billion in public debt.
Luma made clear it expects significant financial compensation if its contract is ultimately terminated, stating it would be entitled to at least $4.5 billion in damages, along with additional billions.
A representative from Puerto Rico’s Justice Department had not responded to requests for comment as of Tuesday.
Luma Energy is a joint venture between Atco, headquartered in Calgary, Alberta, and Houston-based Quanta Services Inc. The consortium assumed control of Puerto Rico’s power transmission and distribution network in June 2021, stepping into a system already weakened by decades of neglect and poor management under the island’s own power authority.
