Fiscal Board halts procurement of new permanent power generation plants

The Fiscal Oversight and Management Board (FOMB) asked the Public-Private Partnerships Authority (AAPP) to halt the selection process for two active permanent power generation projects, citing unresolved questions about fuel access and the feasibility of interconnecting multiple production facilities to the grid simultaneously ¹. The request comes amid a generation crisis that has caused massive blackouts and rationing across the island over the past two weeks.

Robert F. Mujica of the FOMB indicated there are "numerous outstanding questions" that must be addressed before contracts are awarded. Chief among the concerns is the grid's actual capacity to accommodate dozens of electricity production facilities operating simultaneously, and the systemic fuel access limitations that have been exposed by recent failures.

The numbers that matter

The current state of the electric system paints a difficult picture. Unit 2 at the Aguirre plant produces just 175 of its 315 megawatts -- 55% capacity -- because replacement of a condenser circulation pump has not been completed ². Costa Sur Unit 6, which normally generates 365 megawatts, has been offline since July 16 ². Costa Sur Unit 5 had a brief outage due to an "operational error" and operates under continuous monitoring ².

Meanwhile, a $141 million project to convert Genera PR units at the Palo Seco (Units 3 and 4), San Juan, and Cambalache plants to natural gas is also stalled. FEMA funds cannot be disbursed until the EPA grants environmental permits, a process that has already exceeded the original summer 2026 deadline ³.

This means Puerto Rico faces a double blockade: it cannot build new plants because the FOMB stopped the procurement process, and it cannot modernize old ones because federal permits are missing.

Josue Colon, executive director of the AAPP -- who recently accompanied Governor Jenniffer Gonzalez on a visit to the Aguirre plant in Salinas -- must now navigate between the FOMB's demands and the urgent need to stabilize service ¹. The FOMB reaffirmed it retains authority to evaluate any contract before final approval.

LUMA Energy president Janisse Quinones acknowledged from Aibonito that "the electrical system requires each of its components to fulfill its responsibility and work in a coordinated manner" ⁴. LUMA deployed 12 specialized brigades in the Barranquitas district for preventive maintenance and modernization, but warned that generation problems are beyond its direct control.

This week, 23 municipalities will face scheduled interruptions for maintenance work including vegetation removal, line replacement, and substation upgrades ⁵.

What it means for you

If you live in Puerto Rico, the FOMB's pause has real consequences. Every month that new generation is delayed is another month depending on decades-old plants that fail frequently. The units currently operating at half capacity or offline are the same ones the new plants are supposed to replace.

The stalling of the $141 million gasification project makes things worse. Converting those units to natural gas would reduce emissions and operating costs, but without EPA permits, FEMA funds remain frozen.

For your wallet, this translates to unstable bills, constant risk of unscheduled blackouts, and dependence on private generators for those who can afford them.

Checklist to protect your home

1. Review your electrical emergency plan: make sure you have flashlights, batteries, and portable chargers ready.
2. If you have medical equipment that depends on electricity, register your case with LUMA at 1-844-888-LUMA so they notify you of interruptions.
3. Disconnect sensitive equipment during the maintenance periods announced by LUMA this week.
4. Evaluate solar-plus-battery options -- the 30% federal ITC credit is still available and does not depend on the FOMB or Genera PR.
5. Check with your municipality whether there are community energy resilience programs or microgrids in your area.
6. Monitor LUMA Energy and Genera PR social media pages for rationing or scheduled blackout alerts.

What comes next

The FOMB has not set a deadline to lift the pause. What is clear is that before authorizing new contracts, it will demand concrete answers on how fuel limitations and the system's interconnection capacity will be resolved. Genera PR has three days to submit a corrective action plan for the operational error at Costa Sur Unit 5 ².

The outcome of EPA environmental permits for gasification will determine whether the $141 million in FEMA funds finally flow to Palo Seco, San Juan, and Cambalache ³. With no estimated approval date, that money remains a promise on paper.

Meanwhile, the island enters the final stretch of the 2026 hurricane season with a fragmented electrical system, plants running at half power, and no clear path to the new generation everyone acknowledges is needed.

Sources: ¹ El Nuevo Dia — Fiscal Board requests pause to new permanent power generation procurement ² El Vocero — Multiple power generation units operating at limited capacity ³ El Nuevo Dia — Awaiting environmental permits to obtain FEMA funds for Genera PR gasification ⁴ El Vocero — LUMA president calls for greater coordination to strengthen the grid ⁵ El Vocero — Which municipalities could lose power this week