Board certifies PREPA’s 2021 Fiscal Plan: debt, LUMA and FEMA

On May 27, 2021, the Oversight Board certified the 2021 Fiscal Plan for the Puerto Rico Electric Power Authority (PREPA). Like other FOMB fiscal plans, it is a PROMESA roadmap — not a court-confirmed Title III Plan of Adjustment.

The document summarizes the legacy hole: as of May 2017, PREPA carried roughly $9 billion in debt obligations and a pension liability exceeding $4.3 billion, of which $3.6 billion was unfunded — about $6,000 and $2,400 per customer, respectively, on a base of nearly 1.5 million customers. Those figures led to the voluntary Title III petition under PROMESA.

On present operations, the plan notes that at the close of FY2020 PREPA served ~1.5 million customers and generated about $3.5 billion in revenue on some 16 TWh of sales. In FY2021 it highlights the Front-End Transition toward LUMA Energy, LLC for the transmission and distribution system (T&D OMA), repairs at Costa Sur and San Juan, and a historic “Global Settlement” of $10.7 billion in FEMA PA 428 funding via COR3, plus cost-share and other streams (insurance, Hazard Mitigation, CDBG-DR). Obligated or announced in a settlement is not money already disbursed on every pole.

The plan’s path includes transferring legacy generation to private operators (O&M target before calendar year-end 2021), advancing the debt RSA, and reforming pensions via PREPA’s Title III. It also warns that debt and pensions left unrestructured push the projected rate — distinct from the post-measures rate without that charge. Certifying a fiscal plan does not close the electric bankruptcy.

Cousin: none versus later PREPA PoAs. Primary: certified FOMB PREPA PDF, May 27, 2021 (AAFAF/docs.pr.gov). A single source; later LUMA releases and 2022–2023 PoAs are not mixed in.