Guayama protests: $164M federal grant would extend AES coal plant's life

Residents of barrio Cimarrona in Guayama and environmental leaders are up in arms against a $164.5 million grant the federal Department of Energy awarded to AES Puerto Rico, the island's only remaining coal plant ¹. Opponents say the money is the first step toward extending coal-based electricity generation for decades in a community already burdened by documented environmental violations and coal ash contamination concerns ¹².

The AES plant, located on Guayama's southern coast, has operated since 2002 under a contract signed in 1994 ⁴. The Authority for Public-Private Partnerships (AAPP) confirmed to the Energy Bureau (NEPR) that negotiations for a five-year contract extension are in an "advanced stage" ⁴. AES executives have already met with AEE and AAPP officials to finalize terms, though the impact on your electricity bill remains undefined ⁴.

Separately, a plan exists to replace AES's coal operations with a 700-megawatt natural gas plant, but that project is on an independent track with no firm timeline ⁴.

The coal ash problem

By law, AES's coal combustion residues must be exported from Puerto Rico ¹. But barrio Cimarrona residents brought evidence to the Department of Natural Resources and Environment (DRNA) showing that dredged material from Las Mareas port contains coal ash particles ³. Víctor Alvarado Guzmán, spokesperson for the Environmental Dialogue Committee, described what they found: "Light gray material that crumbles when you touch it. It's not sandy -- it's a powder" ³.

The DRNA identified up to five regulatory violations related to dredged material deposits in barrio Cimarrona ². However, the agency admitted it "has not yet determined whether the stored sediment contains coal residues" ². DRNA official Waldemar Quiles Pérez was assigned to determine the corresponding sanctions ². Residents insist the violations go beyond irregular sediment deposits near residential areas ³.

What this means for you

If you live in Guayama or southern coastal municipalities, this directly affects you. An AES extension means more years of coal operations in your neighborhood -- with the emissions, ash handling, and fossil fuel port traffic that come with it. If you live anywhere else on the island, the outcome of this negotiation could impact your electric rate, though AAPP has not yet revealed how ⁴.

The $164.5 million in federal funds is your federal tax money. In theory, those funds should modernize energy infrastructure, but community leaders argue that channeling them toward a coal plant contradicts Puerto Rico's legally mandated renewable energy transition goals ¹.

How to take action / Checklist

• Check your exposure: If you live near the plant (barrios Cimarrona, Jobos, Las Mareas), document any suspicious material deposits in your community with photos and video.
• Participate in public hearings: When NEPR opens comments on the AES contract extension, submit your concerns. Monitor hearings at energia.pr.gov.
• Contact DRNA: If you observe gray or powdery material near dredging zones, report to DRNA at (787) 999-2200 and request a case number.
• Demand rate transparency: Ask your legislator what impact the AES extension would have on electricity bills. AAPP has not published that figure yet.
• Join local organizations: The Environmental Dialogue Committee and other Guayama groups are organizing community response.

What comes next

DRNA must complete testing to confirm or rule out coal ash presence in the dredged material from Las Mareas port ². Waldemar Quiles Pérez will determine sanctions for the five violations already identified ². Contract negotiations between AES, AEE, and AAPP continue, and any extension would require NEPR approval and likely Fiscal Oversight Board sign-off ⁴. Meanwhile, Guayama residents vow to keep up pressure to redirect federal funds toward clean energy projects instead of prolonging the coal era in their community ¹.

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Sources ¹ El Nuevo Día, "Residentes en Guayama truenan contra asignación federal que extendería la vida de cogeneradora AES," Aug 9, 2026 ² El Nuevo Día, "Hasta cinco violaciones: DRNA revela los incumplimientos identificados por depósitos en comunidad de Guayama," Jul 23, 2026 ³ El Nuevo Día, "Residentes de Guayama llevan al DRNA evidencia de presencia de cenizas en material vinculado a dragado del puerto Las Mareas," 2026 ⁴ El Nuevo Día, "En etapa avanzada la negociación contractual para extender las operaciones de AES en Guayama," Mar 25, 2026