NEWSLETTER
TheInstituteforCompetitivenessandSustainableEconomyofPuertoRico(ICSE)isa501(c)(3) nonprofitorganizationestablishedin2015.ICSE’smissionistoinvestigate,educate,and advocateonbehalfofthepublicinterest.ICSEisindependent,non-partisan,andnonsectorial,focusingonessentialpublicinfrastructurereforms.Currentlywefocusoureffortson PuertoRico'senergytransformationwithintheregulatoryframeworkofAct57-2014andthe policymandatesofAct17-2019
CONSUMERDEFENSEPROGRAM
DECISIONOFTHEFIRSTCIRCUIT:SUMMARY
On March 22, 2023, Judge Swain's Title III Court determined the extension of the lien for PREPA bondholders. The bondholders' total debt is approximately $85 billion Applying the Bankruptcy Code, the Court reduced this amount to $2.4 billion covering only the Sinking Fund and other specified funds The bondholders appealed this decision. On June 12, 2024, the First Circuit Court of Appeals in Boston ruled that the bondholders’ lien encumbers PREPA’s current and future net revenues Additionally, the Court granted the bondholders' request for an account. The opinion suggests that the bondholders may recover funds improperly diverted from the Amortization Fund This decision affects the proceedings in the Swain Court, implying a new phase of discovery and potential financial audits of PREPA. This decision has economic implications, as PREPA has not operated with real profits since the fiscal year 2006-2007
https://www.ca1.uscourts.gov/
INJUDGESWAIN'SCOURT
ICSE and 11 non-bondholder entities, alongside Attorney Rolando Emmanuelli, filed a motion in the PREPA bankruptcy case. They responded to a request from bondholders to reopen the confirmation hearing and admit LUMA's electric load projections as evidence, arguing that these projections would allow for a higher payment to bondholders than the one proposed by the Fiscal Oversight and Management Board (FOMB)
ICSE and the other entities did not take a position on reopening the hearing, reserving their rights regarding the bondholders' motion Judge Swain denied the bondholders' motion, finding it unnecessary to add evidence. ICSE maintains that if LUMA's projections are accurate, the increase in PREPA's revenues must consider its vulnerability to natural disasters, the insufficiency of FEMA funds, and measures to mitigate the impact on consumers
INTERVIEWWITH ELNUEVODÍA
In March, Joanisabel González, a journalist from El Nuevo Día, interviewed ICSE and economist Dr Ramón Cao about the Debt Adjustment Plan for the Puerto Rico Electric Power Authority (PDA-AEE) ICSE could appear before the Court of Appeals if Judge Laura Taylor Swain approves the PDA-AEE.
ICSE Attorney, Fernando Agrait Esq, highlighted the negative effects of the PDA-AEE, such as the increase in electric rates and its impact on Puerto Rico's economy Dr Ramón Cao pointed out that the legacy charge of the plan would destabilize labor and financial markets Josen Rossi, co-founder of ICSE, mentioned that the costs of renewable projects could double, making the transition to renewable energies more difficult
ICSE's Development Manager, Attorney Verónica Santiago, emphasized the multisectoral call and citizen participation in opposing the PDA-AEE, with fifteen professional associations united in the cause ICSE will convene again if necessary to promote public discussion and citizen participation
https://ecfnysduscourtsgov/cgi-bin/ShowIndexpl
ENERGYGLOSSARYPROMOTIONTO STUDENTS
As part of continued dissemination efforts by ICSE-JEPR, the Energy Glossary was presented to students at the Pontificia Universidad Católica de Puerto Rico during a conversatory about Energy Public Policy in Puerto Rico The purpose of this event was to highlight the importance of energy education and to provide students with a comprehensive resource to enhance their understanding of energy terminology and concepts.
ICSE'SRADIOINTERVIEW
On May 23, 2024, Attorney Verónica Santiago, ICSE's Development Manager, was invited to the radio program "Ahora" during a special edition on energy topics Attorney Santiago talked about the Energy Glossary as an educational tool developed by ICSE in collaboration with JEPR The Glossary’s content and usefulness was promoted during the interview, and the public was invited to access and download the glossary.
https://radioisla.tv/
InternshipProgram
COLLABORATIONTOPROMOTE PROFESSIONALDEVELOPMENT
ICSE and the Kinesis Foundation signed a collaboration agreement to help Puerto Rican students in their professional development while completing their university degrees. The Kinesis Foundation is a 501(c)(3) non-profit educational organization that provides the necessary resources for students to overcome social and economic limitations. Recently, ICSE offered an opportunity to the first intern from the Kinesis Foundation, who will be contributing to the organization's institutional growth
NEWMEMBERS
LEGALRESEARCHINTERN
Oscar A Lühring Valentín is in his third year of the Juris Doctor program at the Pontifical Catholic University of Puerto Rico, Ponce Campus He holds a master's degree in Public Administration with an emphasis on Government and Public Policy from the University of Puerto Rico, Río Piedras Campus He has participated in research on local socioeconomic development through distributed energy resources from a sociopolitical perspective Currently, he is a tutor in Property Law at the PUCPR School of Law, focusing on the relationship between land use policies and the development of renewable energy projects
COMMUNICATIONSINTERN
Julie Alemán is a recent graduate from Marquette University located in Milwaukee, WI, and a participant in the Kinesis Scholarship Program Last month, she graduated as a first-generation student with two bachelor's degrees: Corporate Communications and Advertising Over the past four years, Julie has gained expertise in social media management, communications strategy planning, design, human resources, equity management, diversity and inclusion, and administrative tasks. As a Kinesis-ICSE intern, she will help improve ICSE's communications and other institutional areas
Events
GREENENERGYDRINKS
On April, ICSE's Verónica Santiago, Esq and JEPR attended ECO EXPO 2024 at PR Convention Center to present and promote the Energy Glossary at Green Drinks event Several copies were distributed to energy industry members, professionals, and consumers/prosumers
Upcoming
NEWLEGALEFFORTTOHALT AAAWATERRATEHIKES
The ICSE will persist with its legal actions against the AAA in a renewed and comprehensive effort to halt the proposed water rate increases. This initiative underscores ICSE's commitment to advocating for fair and participative proceedings, ensuring the interests of consumers are prioritized and protected.
ICSEREMAINSALERTTODEVELOPMENTS INTHEPREPACASE
The case of the restructuring of PREPA debt has taken a turn following the decision of the Boston Court of Appeals ICSE will continue to actively participate in the judicial processes, according to developments in Judge Swain's Court, and will continue to lead the civic participation of its allies
acueductosprgov