Many trace the underlying economic problems to the Puerto Rico Electric Power Authority (PREPA). Despite charging more than double the average rate per kilowatt hour that mainland suppliers charge, PREPA slid deep into the red in recent years. The authority was also structured to fail, according to Elías R. Gutiérrez, an economist and professor of planning at the University of Puerto Rico. “Let’s put it this way: PREPA has been the cause of the serious problems with the economy of Puerto Rico for several years now.” Gutiérrez notes the authority has failed to invest in new technologies and continues to subsidize the central government even as it accumulated debt. Although it was formed as a public corporation, PREPA did not charge the government or municipalities for the electricity they consumed. Gutiérrez said the subsidy cost PREPA tens of millions a year. “There’s no way anyone, not even a monopoly, which PREPA is, can survive under those conditions.”
Posted on: Tue, 02 Sep 2014 00:24:18 +0000
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