Board Nominee Rejects Ending PREPA Power Monopoly By EVA LLORENS VELEZ Former Commonwealth Comptroller Ileana Colón Carlo expressed skepticism about the idea of ending the Puerto Rico Electric Power Authority’s (PREPA) electricity monopoly, but supported a revision of the utility’s subsidies to reduce its deficit. Colón Carlo appeared Tuesday before the Senate Energy and Water Affairs Committee, which is evaluating her nomination for PREPA’s board. Colón Carlo also objected to the creation of a proposed oversight panel to monitor the actions of PREPA’s board, saying it could be costly and hurt consumers. The panel would focus on preventing hikes in the utility’s fees. “If consumers pay for it, then there would be no savings,” she said. “A regulating entity costs a lot of money.” During the hearing, Colón Carlo made a list of roadblocks that PREPA faces in ending its fiscal crisis. She stressed the need for PREPA to reduce costs. She supported the idea of revising the estimated $300 million in subsidies and contribution in lieu of taxes given by the public utility to public housing residents, businesses and the island’s 78 towns because they have increased its $800 million deficit. Recently, the governor enacted a law that granted the Puerto Rico Aqueduct and Sewer Authority (PRASA) a special power rate, which Colón Carlo said was a move “that took from one pocket to put it in the other.” She said the two utilities both have structural imbalances and endure public mistrust. She supported the idea of PREPA diversifying its business. Colón Carlo was once a member of the so-called Blue Ribbon Committee that shed light on a fiber optic program that was financed in part by PREPA, but whose revenues were being enjoyed by the private sector. “Thanks to the intervention of former Gov. Sila Calderón and the Blue Ribbon Committee, PREPA now has a business that gives it millions of dollars,” she said in reference to PREPA Net. In an aside, Colón Carlo did not answer if she supported ending PREPA’s monopoly on electric power production as proposed by Senate President Eduardo Bhatia. She said that what Bhatia really wants is to maximize the use of renewable energy. In that regard, she said PREPA was already working toward that goal. PREPA buys energy from several renewable-energy and coal-fired plants. “That began with Eco Eléctrica,” she said. “The authority is already working to have 600 megawatts of power produced by renewable energy.” Colón Carlo said that because Puerto Rico is an island, it needs to have “redundant” power systems because if the systems fail, “we would be in the dark and have no one to bring us power, unlike the 48 contiguous states.” One of the challenges faced by PREPA is to meet mercury and air toxics standards (MATS), to install environmental control equipment and convert power plants to burn natural gas in order to avoid federal fines. The changes must be made by 2015. Another challenge, Colón Carlo said, is to reduce energy theft. “There are around 10,000 delinquent accounts that have to be collected in order to save around $60 million,” she said. The former comptroller also said PREPA must improve its customer service. She noted surveys that show people’s dissatisfaction with employees, whom she described as insensitive and arrogant. “This is an area that we must deal with in order to regain people’s trust,” she said. San Juan, Puerto Rico Puerto Rico
Posted on: Wed, 13 Nov 2013 21:33:49 +0000
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