February 27, 2021

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Energy Bureau closes request for proposals process for temporary generation | government


After an evaluation originated by the Energy Bureau (NE), of the Public Service Regulatory Board, to determine the need for emergency generation requested by the Electric Power Authority (PREPA) after the earthquakes that occurred in January, it was concluded to close the case.

The Bureau, after an exhaustive analysis, had determined that once the peak energy demand period was exceeded, emergency generation was not necessary, since the current capacity is sufficient to meet the demand and meet the reserve requirements.

In response to PREPA’s request, in February, to make a request for proposals for temporary emergency generators due to the damage that occurred in the Central Costa Sur and in Ecoel├ęctrica, the NE proceeded to open an evaluation process to determine if there really was a The need for this temporary generation, whose cost was 70 million dollars a month.

Likewise, the regulatory entity ordered PREPA to carry out repair work in the Central Costa Sur while the evaluation of temporary generation continued. This resulted in the repair of the Central Costa Sur exceeding expectations in terms of time and costs, which is why it was able to start operations sooner than was expressed by PREPA.

The Energy Bureau had received requests from various groups to suspend the request for proposals process. While PREPA submitted to the NE, on June 1, a letter notifying that after evaluating the time period related to the request for a proposal for emergency generation, it had decided to cancel it.

After the pertinent evaluation, the NE decided to close the process of requesting proposals for temporary generation. However, it notified that the other provisions of the case remain in force, so PREPA has the obligation to continue submitting the reports ordered in the case.



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