AAFAF: the Government answers the Board’s lawsuit against Act 10

On September 12, 2024, Omar J. Marrero Díaz, executive director of the Fiscal Agency and Financial Advisory Authority (AAFAF), publishes the Government’s reaction to the Financial Oversight Board lawsuit seeking to invalidate Act 10-2024. That same day, Governor Pedro Pierluisi submitted his answer to the Invalidation Action. AAFAF holds that Act 10 seeks to promote modernization of the electric system and the use of sustainable sources, in line with the policy of Act 17-2019, and that it is consistent with PREPA’s certified Fiscal Plan.

According to Marrero, Act 10 supports the fiscal plan’s distributed-generation mandate: less utility-scale generation and more capacity on solar rooftops. He asserts that existing net metering is what has allowed that mandate to be met; if incentives are reduced or eliminated, he says, PREPA’s ability to meet the plan is affected. He denies that the law seeks to impair the Energy Bureau’s rate-setting power. Invalidating Act 10, he contends, would limit near-term generation increases and the push toward a modern, resilient system.

This note sticks to the AAFAF release. It does not invent megawatt or savings figures the PDF does not carry. A Board lawsuit is not a ruling. A Government answer is not a judgment. A different kettle from a temporary-generation contract or a CDBG Slow Spender. What remains is Act 10, the September 12 answer, and a no to declaring a winner. A reader who wants the release has the AAFAF URL at the foot. This is not original reporting.

Fuente: Autoridad de Asesoría Financiera y Agencia Fiscal. https://docs.pr.gov/files/AAFAF/Press_Room/PRESS%20RELEASES/2024/September/Reaction-to-FOMB-lawsuit-over-Act-10.pdf