ICSE led a successful effort to block the Lisa Donahue Restructuring Support Agreement (RSA), preventing the imposition of $4.5 billion in debt payments on consumers ' energy bills. This was achieved with the support of 5 businessassociations.
$0debtrepaymentonenergybills (2023–2025)
With the backing of 15 business, community, and professionalorganizations,and4expertwitnesses, ICSE helped eliminate the legacy charge, securing a zero-dollar debt burden for consumers during thisperiod.
$895millionredirectedin
distributedenergy(2021)
In partnership with 5 allied organizations, ICSE successfully advocated to redirect these funds from PREPA-LUMA to distributed energy programs forconsumers.
$395 million was allocated to the CEWRI housingenergyprogram.
$500 million in additional investments from the U.S. Department of Energy (DOE) is now supportingsolardistributedenergyprojects directlyforconsumers.
EnablingBetterDecision-Making:
40+organizationsmobilized(2018)
ICSE, in collaboration with RMI, brought together more than 40 public, private, academic, and community entities to produce policy recommendationsthathelpedshapePuertoRico’s landmarkAct17-2019.
5studentinternstrained(2021–2024)
Young professionals from UPR, UIPR, UPRM, and PUCPRreceivedhands-onexperienceandtraining inenergyjusticeandpublicpolicy.
8strategicpartnerships(2024)
ICSE formed lasting alliances with leading institutions such as AIPR, Grid Alternatives, MIDA, Fundación Kinesis, Banco Popular, Espacios Abiertod and others toamplifyeducationaloutreach.
30+educationalevents(2024)
ICSE (7) and JEPR (23) delivered educational workshops and seminars on energy debt restructuring, energy sector governance, energy literacy(Glossary),andcommunityresilience.
15FederalCourtJoinders(2023–2024)
ICSEcoordinatedlegalinterventionsalongsidediverse associations to formally oppose unfair energy debt restructuringproposals.
xxxpubliccolumnspublished (2024–2025)
These writings aimed to inform and engage the broader public on critical issues of energy sector governance.
The Institute for Competitiveness and Sustainable Economy of Puerto Rico (ICSE) is a 501(c)(3) nonprofit organization established in 2015. ICSE’s mission is to investigate, educate, and advocate on behalf of the public interest. ICSE is independent, nonpartisan, and non-sectorial, focusing on essential public infrastructure reforms Currently we focus our efforts on Puerto Rico's energy transformation within the regulatoryframeworkofAct57-2014andthepolicymandatesofAct17-2019
CONSUMERDEFENSEPROGRAM
Swain Court - Opposition
ICSE presented its opposition to the confirmation of PREPA’s Plan of Adjust (POA) proposed by FOMB Previous arguments were reiterated such as the POA not being economically viable even within the same parameters demanded by the POA itself; the costs of complying with energy policy (Act 17-209) are not contemplated; it does not consider how affordable the proposed tariff increases are for commercial and industrial consumers; it unduly interferes with the powers of the Puerto Rico Energy Bureau (PREB), and that there are implementation risks due to the lack of trained personnel in the public structures responsible for policy execution
Swain Court - Depositions
The expert witnesses of ICSE, including Attorney Eduardo Bhatia, Attorney Ramón L. Nieves, Dr. Ramón Cao, and Mr Eric Ackerman, were questioned by FOMB and bondholders' attorneys about the expert reports they presented in December 2023.
Swain Court - Joinders
For the third time, ICSE convened multisectoral entities to facilitate their participation in PREPA’s debt restructuring process ICSE prepared and filed joinder motions before the Court at no cost, allowing entities to support its Objection and voice their concerns
Ten diverse entities joined ICSE’s Opposition: 1) Colegio de Abogados y Abogadas de Puerto Rico; 2) Espacios Abiertos para Puerto Rico, Inc.; 3) Asociación de Constructores de Puerto Rico; 4) Liga de Ciudades de Puerto Rico; 5) Asociación de Colegios y Universidades Privadas de Puerto Rico; 6) Sociedad Bíblica de Puerto Rico; 7) Asociación de Detallistas de Gasolina; 8) Asociación de Farmacias Comunitarias de Puerto Rico; 9) Programa de Educación Comuna de Entrega y Servicio, Inc (PECES) and 10) Barrio Eléctrico
Swain Court - Confirmation Hearings
Confirmation hearings for the POA began ICSE represented by its legal counsel and Fellow, Attorney Fernando Agrait appeared in opposition to its confirmation ICSE questioned FOMB’s expert Dr Glenn George, who contradicted FOMB's own assertions, suggesting that the adoption rate of distributed energy systems, which lower PREPA’s revenues, is underestimated In essence, he argued that the revenue projections relied upon by the POA are inflated. Also, when Attorney Agrait questioned him, Dr. George acknowledged that in 23 out of the 28 years under the POA, there will be a failure to meet the maximum energy payment cost in proportion to necessary expenses (referred to as share of wallet) FOMB proposed a share of wallet of 6% The participation of Attorney Agrait during the court hearings was widely covered and praised by the press
ICSE's economist expert, Dr. Ramón Cao García, played a key role in the confirmation hearings, undergoing cross-examination by bondholders' attorneys Dr Cao emphasized for the judicial record that the legacy charge, other charges and expenses such as necessary capital improvements, pensions, and others have an effect on the electricity bill that will significantly impact Puerto Rico's economic performance.
We are currently awaiting Judge Swain's decision on whether to confirm or reject PREPA’S POA
Junte Multisectorial
ICSE is one of the leading organizations of the Junte Multisectorial, comprised of over 30 entities from various sectors, which joined together in May of last year to oppose PREPA’s Plan of Adjustment presented by FOMB, due to its impacts on the economy, the island’s electrical system, and PREPA’s retirees' pension system This coalition includes entities from religious, commercial, industrial, healthcare professional, union, environmentalist, community, educational, cultural, worker, retiree, and other sectors
The Junte Multisectorial has organized opportunities for citizen participation through endorsed letters to government entities; letters to Judge Swain, objections, joinders to objections, marches, and educational activities It seeks to defend collective interests and work together to advocate for an Adjustment Plan that promotes the sustainability of Puerto Rico's society and economy.
Consumer Advocate Representatitive
A vacancy occurred on PREPA’s Governing Board when the term of the Consumer Advocate Representative (Eng. Tomás Torres Placa) ended. As of now, no replacement has been appointed, leaving customers' interests unrepresented.
Mr Giancarlo González Ascar, with a background in data management and information systems, submitted his candidacy and sought certification for the position but was denied by the Office of the People's Advocate (“Ombudsman”), arguing that information systems have nothing to do with energy infrastructure.
In its effort to ensure adherence to best governance practices, ICSE supports Mr. González Ascar's candidacy It emphasizes that his professional background would be beneficial for PREPA’S Board and aligns with the energy policy goals of rebuilding a modern and resilient electrical system. His certification is pending, and he has resorted to legal action. ICSE continues to back Mr. González Ascar in this process.
DECISIONOFTHEFIRSTCIRCUIT:SUMMARY
On March 22, 2023, the Title III Court, presided over by Judge Taylor Swain, ruled to extend the lien in favor of the Puerto Rico Electric Power Authority (PREPA) bondholders. The total debt owed to the bondholders is approximately $8.5 billion, but the Court decided that they only had a lien on the money in the Sinking Fund and other additional funds, reducing the secured amount to $2.4 billion according to the Bankruptcy Code. The bondholders appealed this decision, and on June 12, 2024, the First Circuit Court of Appeals in Boston ruled that the claim could not be recovered personally and extended the lien to PREPA's current and future net revenues Additionally, the Court granted the bondholders' request for accountability, which involves audits of PREPA's finances This decision has economic implications, as PREPA has not operated with real profits since the fiscal year 2006-2007.
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
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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.
ICSEREQUESTTOTHEMEDIATION TEAMORDEREDBYJUDGESWAIN
Judge Swain initially denied ICSE's request to participate in the mediation process concerning PREPA's bankruptcy. However, the Judge revised her order, allowing ICSE to seek permission directly from the Mediation Team.
ICSE submitted this request to participate in the mediation process to advocate for Puerto Rican consumers, who are expected to bear the burden of PREPA's debt repayment under the proposed agreement.
Consequently, 3 organizations supported ICSE as Puerto Rico's representative in PREPA's debt restructuring legal proceedings
The Mediation Team's deadline for its work was extended to November 13 Proceedings remains in effect until January 31, 2025, as ordered by Judge Swain.
A coalition of various sectors in Puerto Rico has addressed a letter to Judge Laura Taylor Swain, expressing opposition to the proposed increases in electric rates intended to pay off the Puerto Rico Electric Power Authority's (PREPA) bond debt The coalition highlights that further rate hikes would burden Puerto Rico’s already fragile economy. They argue that prioritizing debt payments over necessary investments will perpetuate system failures. The letter also calls attention to the uncertainty faced by over 10,000 PREPA retirees whose pensions remain unfunded beyond September 2024
ICSE is actively participating in a confidential investigative proceeding led by Puerto Rico Energy Bureau (PREB) and Hearing Examiner Scott Hempling The case, PREB-MI-20200001, examines LUMA's and PREPA's reported cash flow deficiencies and the potential need for an Emergency Rate under Act 57-2014.
ICSE is the only private intervenor focuses on improving governance between PREPA, LUMA Energy, and Genera PR to reduce consumer costs. The Institute also challenges the lack of public access to information, emphasizing that confidentiality in administrative investigations should not override constitutional rights to transparency and free expression.
INTERVIEWWITHELNUEVODÍA
El Nuevo Día interviewed ICSE attorney José Pou, about the organization’s work on the Puerto Rico Aqueduct and Sewer Authority (PRASA) 2% bill increase for this year
Pou publicly highlighted his efforts regarding the legal challenge under the LPAU (Law 38-2017), after the Puerto Rico Court of Appeals dismissed the case, citing a lack of jurisdiction. This decision allowed PRASA to proceed with the rate increases.
“In our opinion, it is incorrect that an agency can evade the Court’s scrutiny of their actions. In Puerto Rico, it is presumed that the Courts always have jurisdiction to review decisions made by agencies such as PRASA This means that the question is not whether our claim can be filed before a Court of Justice, but in which Court of Justice, which is why on this occasion we are seeking recourse from the Appeals Court,” Pou explained.
ICSEAPPEALSCOURT’SDECISION INPRASA’SBILLINCREASE
ICSE filed a certiorari petition with the Supreme Court of Puerto Rico, seeking intervention in the tariff review process initiated by the Governing Board of the Puerto Rico Aqueduct and Sewer Authority (PRASA). This review proposes a new rate increase of 2%, following a previous rate hike (5%) implemented in 2022 The petition, led by attorney José Pou, aimed to challenge the lack of transparency and legal due process in this decision-making process by the AAA One of the main concerns raised is that the decision was made without providing Puerto Rican consumers the opportunity to comment or express their views, despite the direct impact it would have on their financial obligations to the PRASA
The organization took this action after the Puerto Rico Court of Appeals declared it lacked jurisdiction to address the issue, which prompted the ICSE to elevate the matter to the Supreme Court of Puerto Rico. The organization believes that the decision-making process should have involved public hearings or opportunities for community input, as it affects thousands of residents who would face increased utility bills without having had a say in the matter.
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The Supreme Court denied ICSE’s request to intervene in the controversy on November 15, 2024. Consequently, a motion for reconsideration was filed on December 4, 2024 The Court has not yet issued a determination on this matter. The ICSE hopes that the Supreme Court will recognize the importance of consumer rights and due process in such matters and will take appropriate steps to ensure that any future rate increases follow a transparent and participatory process
EDUCATION&PUBLICCAPACITYBUILDING
WORKSHOPFORMEDIAPROFESSIONALS
On January 13, ICSE hosted a successful workshop titled "PREPA'S Plan of Adjustment Under PROMESA Act," attended by eighteen media professionals Fernando Agrait, Esq discussed unclear responsibilities among entities hindering POA implementation. Economist Dr. Ramón Cao expressed doubts about proposed debt reduction cautioning against unclear charges based on electricity demand projections. José Pou outlined key players in Puerto Rico's energy ecosystem and demonstrated research methods using PREB’s website The workshop highlighted the media's crucial role in informing the public about PREPA’s debt adjustment process.
EDUCATIONALACTIVITYWITHTHE JUNTEMULTISECTORIAL
On February 28, ICSE helped coordinate and conduct an educational event at the Colegio de Abogados y Abogadas de PR, where ICSE's Legal Advisor, Fernando Agrait, explained PREPA’s POA and current status of proceedings in federal bankruptcy court, Dr. José Alameda discussed its impact on grid modernization and pensions, Ramón Ortiz spoke on rate increases for gas stations, and Cathy Kunkel outlined citizen participation opportunities.
ICSENEWSPAPERCOLUMNS
ICSE analyzed PREPA’s POA in a series of columns for El Nuevo Día Newspaper, exploring challenges and potential impacts
Verónica Santiago, Esq, ICSE's Institutional Development Manager, highlighted challenges arising from the lack of clarity and willingness among key actors (PREPA, PREB, LUMA, GeneraPR, COR3, etc.), hindering public policy and POA's implementation, regardless of feasibility. Santiago also addressed the undue interference of the FOMB in PREB's authority, complicating interactions within the energy sector. Concrete examples underscored the need for effective coordination among these actors
BANCOPOPULARDONATION
Once again, ICSE recently received a generous donation from Banco Popular's Social Commitment Division to support our Education and Capacity Building Program. Specifically, for the development, publication, and dissemination of educational tools, such as the first "Energy Glossary," to promote citizen education and participation in the modernization of Puerto Rico's electrical system.
PODCAST
En Diario Podcast (El Nuevo Día), published an episode titled "Special Episode: What Lies Ahead for Puerto Rico after the AEE Adjustment Plan". ICSE's Legal Advisor and Fellow, Fernando Agrait, Esq, was interviewed by the journalist and editor of the Business section, Joanisabel González, about ICSE's role in the confirmation hearings of the POA, the future of PREPA if the POA is confirmed, the sufficiency of the legacy charge in raising sufficient funds, and the impact of the POA on the implementation of energy public policy
LAUNCHOFTHEENERGYGLOSSARY
Former senators Eduardo Bhatia and Larry Seilhamer, co-authors of Law 17-2019, presented the Energy Glossary to involve citizens in Puerto Rico's energy transformation Law 17-2019 promotes renewable energy, energy efficiency, affordable rates, and citizen participation The Glossary was developed thanks to generous donations from Banco Popular and other donors.
Seilhamer and Bhatia highlighted the importance of the Glossary for understanding energy terms and facilitating the transition to a resilient and decentralized energy system. Produced by ICSE and Justicia Energética para Puerto Rico (JEPR), the Glossary was launched on April 11, 2024, on the fifth anniversary of Law 17-2019
Attorney Fernando Agrait emphasized that the Glossary empowers consumers and is a vital resource for different sectors A dissemination campaign for the Glossary was announced in anticipation of important events in the energy sector in 2024.
The Glossary is available on the JEPR website: justiciaenergeticapr.org.
ENERGYGLOSSARYPROMOTION TO PROFESSIONALS
As part of the dissemination efforts by ICSE-JEPR following the launch, the Energy Glossary was introduced to attendees from the Puerto Rico Society of Certified Public Accountants.
The attendees were provided with a link to download this educational tool. This initiative aims to enhance understanding and knowledge of energy-related terms among professionals, thereby fostering a more informed and engaged community.
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.
On September 24, 2024, in collaboration with Espacios Abiertos and El Junte Multisectorial, ICSE hosted an event addressing the restructuring of PREPA’s debt. The speakers included attorneys Fernando Agrait, Rolando Emmanuelli, and economist Dr. Ramón Cao. Among the topics discussed were court decisions from 2023-2024, the positions of the parties, the mediation process, macroeconomic implications, and transparency and accountability. The event continued with a discussion led by attorney Cecille Blondet, followed by a Q&A session with the audience, which proved to be a very enriching exchange. This event took place at the Colegio de Abogados y Abogadas de Puerto Rico.
DISTRIBUTIONOFTHEENERGYGLOSSARY
ICSE, in collaboration with Justicia Energética para Puerto Rico (JEPR), has distributed over 250 printed copies of the Energy Glossary at various inperson events throughout Puerto Rico, while its digital version has been downloaded 272 times in recent months. The Energy Glossary has impacted a diverse audience not only in Puerto Rico but also across Latin America and the United States. ICSE and JEPR have received very positive feedback and comments about its content.
Centro Criollo de Centro Criollo de Ciencia y Tecnología Ciencia y Tecnología (C3Tec) (C3Tec)
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Banco Popular Banco Popular de Puerto Rico de Puerto Rico
Alianza de Justicia Alianza de Justicia Energética Energética
COLLABORATIONS
MIDAPROMOTESENERGYGLOSSARY AMONGSITSMEMBERS
The Food Marketing, Industry, and Distribution Chamber (MIDA) has included the Energy Glossary on its website for members to download and, in collaboration with ICSE and JEPR, shares weekly posts highlighting glossary terms efforts that have increased interest, downloads, and views amid rising concern over energy costs and sustainability
ALIANZADEJUSTICIAENERGÉTICAHOLDS MEETING WITHPREB
The Alianza de Justicia Energética organized a meeting with the Puerto Rico Energy Bureau to discuss key topics such as Solar Communities and solar system insurance Representing ICSE, Attorney José Pou emphasized the need to simplify and consolidate regulatory proceedings
AFOCUSEDDISCUSSIONONPUERTORICO’S ENERGYCRISIS
At a meeting between the Industrial and Commercial Leader Group: Unidos por Energía and LUMA Energy executives, ICSE raised concerns about LUMA’s lack of accountability and performance improvements Key issues included system reliability, delays in federal fund disbursement, and barriers for local contractors
While privatization remains the preferred model, ICSE emphasized the need for LUMA to assume financial risks and align its performance metrics with public policy goals.
ICSE and JEPR have partnered with the Centro Criollo de Ciencia y Tecnología del Caribe (C3Tec) to promote and educate on STEM and energy topics in Puerto Rico Together, they will host events and other activities aimed at educating young people about the importance of transitioning to a sustainable energy system
INTERNSHIPPROGRAM
COLLABORATIONTOPROMOTE PROFESSIONALDEVELOPMENT
ICSE and the Kinesis Foundation signed a collaboration agreement to support Puerto Rican students in their professional development while pursuing university degrees. The Kinesis Foundation, a 501(c)(3) non-profit, provides resources to help students overcome social and economic barriers. Recently, ICSE welcomed its first intern from the foundation, who will contribute to the organization’s institutional growth
LEGALRESEARCHINTERN
Oscar A. Lühring Valentín is a third-year Juris Doctor student at the Pontifical Catholic University of Puerto Rico, Ponce He holds a master’s in Public Administration from the University of Puerto Rico with a focus on Government and Public Policy His researched the sociopolitical dimensions of distributed energy resources and local development. He currently tutors Property Law, focusing on land use policies and renewable energy projects.
COMMUNICATIONSINTERN
Julie Alemán, a recent first-generation graduate from Marquette University and participant in the Kinesis Scholarship Program, holds degrees in Corporate Communications and Advertising. She brings experience in social media, communications strategy, design, HR, and diversity and inclusion Through the ICSE–Kinesis Foundation internship program, she will support the development of ICSE’s communications department and other institutional areas
SPECIALRECOGNITION
IICSE extends its sincere thanks to Dr. Ramón Cao, economist and former UPR professor, for his invaluable contributions over theyears
As ICSE’s expert in the PREPA Debt Adjustment Case under PROMESA, Dr Cao provided key economic analysis, concluding that the Plan is unviable and would harm Puerto Rico’s development through unrealistic projections and unaffordable ratehikes.Healsotestifiedincourt,warningabouttheburdenof legacychargesonconsumers.
His expertise also enriched public dialogue through media and educational spaces. He shared his insights in an El Nuevo Día interview and played a leading role in ICSE’s workshop, “PREPA’s Plan of Adjustment Under the PROMESA Act,” where he highlighted concerns about vague charges tied to electricity demand forecasts Additionally, he participated as a guest speakerinthediscussion“HowDoestheRestructuringofPREPA’s BankruptcyAffectUs?”
His expertise and dedication have been vital in advancing an informed conversation on Puerto Rico’s economic and energy future.
ICSE also wishes to recognize Ramón L. Nieves, Eduardo Bhatia, and Eric Ackerman for preparing the three expert reports submitted to the Court regarding PREPA’s Plan of Adjustment.TheiranalysesprovidedessentialperspectivesonhowthePlanmayimpactthe implementation of Puerto Rico’s energy public policy, the institutional challenges and implementation risks it presents, and the need for more active regulatory oversight by the PuertoRicoEnergyBureau.
EVENTS
NARUCSUMMIT
On February 27th, 2024, ICSE attended the NARUC Winter Policy Summit in Washington DC During the summit, sessions were packed with utility industry leaders discussing a wide range of energy topics, including matters of great importance to those engaged in utility service in the public interest Mr Josen Rossi, Chairman of the Board, represented ICSE, and Attorney Ramón-Luis Nieves, Executive Director of Energy Justice for Puerto Rico, participated in this significant regulatory activity.
ICSE, JEPR AND THE PUERTO RICO MANUFACTURERS ASSOCIATION HELD THE ENERGYEMERGENCYFORUM
Justicia Energética para Puerto Rico (JEPR), ICSE, and the Puerto Rico Manufacturers Association held an event in October with key figures in Puerto Rico’s energy sector, both from the private and public sectors including PREB, AFFAF, FOMB, PREPA, P3, and Cor3.
Important discussions moderated by Joanisabel González, the Business Editor of el Nuevo Día, invited by the ICSE, highlighted key facts about the island's energy system such as who is in charge, FEMA funds, PREPA bankruptcy, and future plans at the sold-out event with over 200 participants The media covered key topics and insights shared by the speakers
ICSE’s attorney, Fernando Agrait, emphasized that this is not an emergency anymore since the energy sector has been in the process of legislation and debates for about 10 years According, there is a lack of will and seriousness
