The Weekly Journal - Wednesday, August 25, 2021

Puerto Rico and the Caribbean

Wednesday, August 25-31, 2021 - // no. 122

www.theweeklyjournal.com

PRCC Braces for Minimum Wage Hike P6 Triple-S Becomes GuideWell Subsidiary P8

Planning Board:

>Courtesy of Ricardo Dominguez

Report on LUMA’s First Two Months P9

Puerto Rico’s Economy Fell by 3.2 Percent in FY 2020 The year of earthquakes and the start of the COVID-19 pandemic

T Rosario Fajardo

Pathfinder’s Cutting-Edge Technology P15

rfajardo@wjournalpr.com

@RosarioWJournal

here is no doubt that Fiscal Year 2020 was a difficult year for Puerto Rico and the rest of the world. The island was affected by the earthquakes of early 2020 that mainly affected the southern region, and the worldwide COVID-19 pandemic that began on the island in March 2020 with a strict lockdown that impacted major economic sectors.

The Planning Board’s newly released 2020 Economic

Report to the Governor now provides a clearer picture of the economic panorama in Puerto Rico and the island’s continuing economic recovery.

“The effects of these events will be reflected over several years and will take time for the economic recovery. In addition, they present statistical data that show the increase in federal transfers that reached the island as a result of these events,” according to Manuel Hidalgo Rivera, the designated president of the Planning Board.

“Also, different variables are highlighted GO TO PAGE 4

The Weekly Journal > Wednesday, August 25, 2021 > 2

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a week in review Puerto Rico Extends Vaccine Mandates in the Private Sector

Economic Activity Index for June Shows 8 Percent YOY Growth The Economic Development Bank’s (EDB) Economic Activity Index (EAI) for June 2021 reached a maximum level of 118.9 points, which represents a year-on-year (YOY) increase of 8.0 percent. Officials said this is the fourth YOY increase after 12 consecutive reductions. If compared to the previous month, the EAI-EDB growth rate decreased 0.5 percent. The year-on-year results reflect the effects of the closure caused by the pandemic on the island. The employment sectors most affected by the lockdowns and other measures to control the coronavirus, (dining, recreation and lodging, education and health) are still in recovery mode.

Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902

President Salvador Hasbún shasbun@elvocero.com Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

>Josian E. Bruno Gómez

Gov. Pedro Pierluisi announced a new executive order as follows: Starting Aug. 30, beauty salons, barbershops, spas, gyms, childcare centers, supermarkets, grocery stores, casinos and stores in gas stations must require and ensure that all employees who work in-person in those establishments must be vaccinated against COVID-19, or has begun the process to get the shot(s). In some of these businesses, they will also be required to request vaccination from their visitors or, alternatively, their capacity will be reduced by 50 percent.

PRASA Obtains Substantial Reduction in Debt Service The Puerto Rico Aqueduct and Sewer Authority (PRASA) announced the successful execution of a bond offering to refund all of PRASA’s 2012 Series A and B (Senior Lien) bonds, marking the second time since December 2020 that PRASA has accessed the capital markets to pursue substantial reductions in annual debt service. The refinancing was executed through a series of transactions including an exchange, a tender for cash, a current taxable refunding and a forward delivery refunding, will generate $570 million in debt service savings over the life of the refunding bonds.

VP of Accounting Félix A. Rosa frosa@elvocero.com

Human Resources Director Arlene Rolón, PHR arolon@elvocero.com

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Traffic Director Ilia M. Pérez Centeno iperez@elvocero.com

Managing Editor Rosario Fajardo rfajardo@wjournal.com

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Phone: 787-622-2300, 787-721-2300

Multi-Plataform Digital Director María Arce marce@elvocero.com

Customer Service: 787-622-7480

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CONTINUED FROM PAGE 1 including Gross Product (GNP), which totaled [nearly] $70.19 billion at current prices. At constant or real prices, this variable registered a value of [more than] $5.64 billion at 1954 prices, which reflected a decrease of 3.2 percent, a drop of 5.0 percentage points with respect to fiscal year 2019.”

The total economic impact of the various measures contained in the lockdown and other executive orders to fight the COVID pandemic was estimated, according to the information available at the time, at $691.6 million, representing 0.01 percent of the island’s Gross Product at current prices.

This number includes an impact of $44.0 million in payroll in the government sector, due to the effect of the “suspension of services” during the lockdown and other executive orders.

This economic downturn would surely have been bigger if it weren’t for the billions in federal pandemic stimulus funds that Puerto Rico has received for individuals, including those who lost their jobs during the COVID emergency; businesses of all sizes through the federal Paycheck Protection Program and Business Interruption grants; as

Although they appear as a key element in the development of entrepreneurship, PyMEs have proven to be very vulnerable to economic fluctuations, and not only are they the most affected, but also the ones that take the longest to recover in times of crisis.

-Manuel Hidalgo Rivera, the designated president of the Planning Board

well as specific allocations for education, tourism, hospitals and local municipalities, among others.

The 408-page Planning Board report notes that in Puerto Rico, small and midsize businesses (known as PyMEs for the Spanish acronym)

represent approximately 80.8 percent of businesses, 38.6 percent of total formal jobs, and 35.6 percent of total paid payroll. “Although they appear as a key element in the development of entrepreneurship, PyMEs have proven to be very vulnerable to economic fluctuations, and not only are they the most affected, but also the ones that take the longest to recover in times of crisis,” Hidalgo said.

Details of the Report

With respect to the 3.2 percent reduction in Gross Product, the Planning Board report states that by industry, this was reflected in a drop of 9.4 percent in personal consumption of goods and services; 37.3 percent in construction investment; 14.4 percent in investments in machines and equipment; and 0.3 percent in government consumption.

In dollars and cents, for example, personal consumption dropped from $9.36 billion in FY 2019 to $8.49 billion in FY 2020. The biggest drops were registered in goods for the home, clothes and accessories. At the same time, local retail sales reached $28.26 billion for FY 2020, representing a drop of 11.2 percent from the previous fiscal year.

While travel and tourism was severely affected in FY 2020, the sector has come roaring back as more and more people get vaccinated against COVID-19. >Josian E. Bruno Gómez

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Puerto Rico’s economy dropped by 3.2 percent in FY 2020, due mainly to the impact of the coronavirus pandemic.

Lodgings in the island’s hotels and small inns lodging (-2,900); and education and health services (“paradores” in Spanish) sector saw a drop of (-1,100).

19.0 percent. Specifically, from the period of July Fed’s Powell: No Returning to to December 2020, there were 426,138 guest Pre-pandemic Economy registrations in hotels and small inns, which was With Puerto Rico so closely connected to the a huge decrease of 62.2 percent from the same United States, it’s important to understand the time period in 2019. This severe drop was directly continuing economic trends and long-lasting attributed to the COVID-19 pandemic, which impact of the pandemic. The essentially saw travel come to economic outlook for the U.S. a near standstill during these was drastically disrupted, posting crucial months, normally a busy its worst year in decades with tourism season for Puerto Rico. the arrival of the coronavirus As a result, the overall lodging pandemic, Hidalgo noted. occupation rate for FY 2020 “This limited Gross Domestic was only 53.2 for hotels and For FY 2020, the Product (GDP) growth and “paradores,” compared to 68.2 biggest job decreases created uncertainty, affecting percent for FY 2019. for salaried workers all economic sectors. Only the Interestingly, personal incomes were reported housing market and construction grew during the pandemic, thanks in commerce, were affected the least, due to in large part to the infusion of transportation and low interest rates and mortgage federal funds. The Planning utilities (-5,900); forbearance plans. It is expected Board reported that the personal government (-4,300); that, as this pandemic is brought income of local resident increased professional and under control and the vaccination by over $2.91 billion representing commercial services process accelerates, it will give a jump of 4.3 percent. Specifically, (-3,400); recreation way to a continued economic federal transfers to local residents and lodging (-2,900); recovery,” he added. jumped by a whopping 13.7 and education and According to Federal Reserve percent between FY2019 and FY health services Chairman Jerome Powell, the U.S. 2020.

(-1,100). economy has been permanently The unemployment rate on changed by the COVID pandemic. the island was relatively stable “We’re not simply going back to during this time period, registered the economy that we had before the pandemic,” at 8.4 percent, and the labor-force participation Powell said at a recent Fed virtual town hall for rate remaining fixed at 40.5 percent. However, educators and students. “We need to watch there was a reported number of 857,000 salaried carefully as the economy continues to get through workers in Puerto Rico in FY 2020, representing a the pandemic and try to understand the ways drop of 16,800 jobs from FY 2019. that the economy has changed and what the The biggest job decreases for salaried workers implications are for our policy.” were reported in commerce, transportation and Powell said that, while it is not yet clear if the utilities (-5,900); government (-4,300); professional Delta variant of COVID will have further impact on and commercial services (-3,400); recreation and

the U.S. economy, the country has already seen significant changes since the pandemic began shutting the country down in March 2020.

Those changes range from the increase in remote work, to restaurants offering more takeout meals, to real estate agents learning to show homes virtually, he noted. Many companies have already made large investments in technology to adapt to the challenges that the pandemic has presented.

“It seems a near certainty that there will be substantially more remote work going forward,” Powell said. “That’s going to change the nature of work and the way work gets done.”

Powell said the heavy investment by companies in new technology means there will be more jobs in the future associated with maintaining that technology but also potential job losses in industries focused on in-person contact. He said some of those industries may be moving to an “automated, no-contact model.”

This trend is already showing up in the jobs data, with the recovery slower in industries that rely on public interaction, such as travel, leisure and hospitality. Those are jobs disproportionately held by women and people of color and typically pay lower wages, Powell noted.

“It may be that some of these people will have a harder time finding their way back into the workforce without more education and training,” he said, adding that there are millions of people who have lost service sector jobs and remain out of work and need to be supported. “That’s a part of the recovery that’s far from complete.”

-The Associated Press contributed to this report.

In fact,

Federal Reserve Chair Jerome Powell >AP Photo/Jacquelyn Martin, File

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PRCC Favors Staggered Minimum Wage Hike to $8.50 an Hour Increase above that figure is ‘beyond the reality of Puerto Rico’

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THE WEEKLY JOURNAL STAFF

he Puerto Rico Chamber of Commerce (PRCC) affirmed that it is in favor of increasing the hourly minimum wage to $8.50 and for it to be established gradually to mitigate the inflation that the new legislation would cause on the local economy.

PRCC President Luis Gierbolini suggested raising the hourly minimum wage to $8.05 by Jan. 2022 and to $8.50 by Jan. 2023 to make room for the economy to adjust to these higher wages.

“There is a snowball effect when the minimum wage is adjusted because, although there are approximately 10,000 to 14,000 employees in the private sector at $7.25 an hour, there are others that fluctuate between $7.35 and $8.50 that also have to increase their wages. Implementing a salary increase in such a short time could generate a reduction in hours, layoffs and [business] closings. At the end of the day, any increase will be paid by the consumer,” he stated.

Meanwhile, Gierbolini called on the government to improve the ease of doing business in Puerto Rico. “In order to help the economic growth of the country, there must be a commitment to reduce the costs of doing business on the island, such as the cost of energy, permits and the inventory tax,” he affirmed.

“The business sector in Puerto Rico deserves to know the empirical studies that support the minimum wage proposal. We are convinced that the increase should be staggered until 2023 until it reaches $8.50. It is a great cost for employers in Puerto Rico, and especially for small merchants, it would be detrimental,” he added.

The PRCC president said that as an entity that represents small to large enterprises, they are wary of how the local commercial environment would be impacted if this increase is not implemented in phases. Moreover, he opposed hikes beyond the proposed number. “The most solid companies that have salary scales above the minimum wage suffer direct consequences in other regions, such as the loss of customers and services from businesses that reduce or close their operations due to increases in the costs of doing business. An increase beyond $8.50 is out of the

Small businesses in Puerto Rico >Archive

reality in Puerto Rico,” he warned.

Competing Legislative Bills

Gierbolini was reacting to two bills that were originally before the Puerto Rico Legislature on raising Puerto Rico’s minimum wage, which since 2009 has been at $7.25 an hour, the same as the federal minimum wage. On Aug. 18, the Puerto Rico House of Representatives approved a bill that is based on a compromise with the Upper Chamber that would increase the hourly minimum wage to $8.50 an hour on Jan. 1, 2022, $9.00 on Oct. 1, 2022, and to $10.00 on Oct. 1, 2023, if approved by a yet to be established Minimum Wage Evaluation Committee. However, on Aug. 19, Gov. Pedro Pierluisi submitted his own bill to increase the minimum wage, based on the recommendations of the Minimum Wage Advisory Group, which he had formed.

This group is comprised of various economists, government officials and union members.

On Monday, the Senate sent the House bill back to the lower chamber to a conference committee after reaching an agreement with La Fortaleza on: $8.50 an hour in Jan. 2022; $9.50 after a period of 12-18 months; and $10.50 after another period of 12-18 months.

Pierluisi’s original proposal would increase the minimum wage to $8.50 per hour on Jan. 1, 2022, with an increase to $9.50 on July 2023 and to $10.50 in January 2025, assuming that certain metrics have been met. These metrics are related to level of employment, level of salary and level of economic activity. For example, according to a copy of the Working Group’s report, the metrics

for $9.50 an hour would be: “Total employment in Puerto Rico is equal to the average employment six months prior to the pandemic, plus 1.5 percent; Puerto Rico’s Economic Activity Index is 3.6 percent higher when January to June 2021 is compared with July to December 2022; and the current minimum wage ($8.50 / hr.) reaches a figure no greater than 46.8 percent of the average wage.”

Regardless, the minimum wage hike is now a go.

The business sector in Puerto Rico deserves to know the empirical studies that support the minimum wage proposal.

We are convinced that the increase should be staggered until 2023 until it reaches $8.50. It is a great cost for employers in Puerto Rico, and especially for small merchants, it would be detrimental.

- PRCC President Luis Gierbolini

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Matt Miller, president of HMS Ferries Puerto Rico, says that the company will hire between 185 to 200 local workers. >Courtesy

HMS Ferries Adding New Cargo and Passenger Vessels

Details Phase 1 of its operations

S

Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

ix months into the public-private partnership agreement between the Maritime Transportation Authority (ATM by its Spanish initials) and HMS Ferries, the company’s president is positive in their capacity to transform Puerto Rico’s ferry system, while improving the livelihoods and regional economies of Vieques and Culebra.

Under the 23-year agreement between both parties, HMS Ferries is responsible for operating and providing maintenance to vessels and operating the maritime transportation system. In February, the company began Phase 1 of its operations, which is essentially a three-year transitional period; the other 20 years, once the changes are in full effect, are categorized under Phase 2.

Matt Miller, president of HMS Ferries Puerto Rico, explained that during this Phase 1 stage, the company will seek and implement short-term solutions to the decades-long problems affecting the ferry system, while also establishing new policy and contingency measures, and procuring new cargo and passenger vessels.

Over the summer, HMS added three cargo vessels from Tampa, Florida, to the system’s inventory under a charter transaction, which means that they are temporarily renting these ships. “We have two more [cargo] vessels coming down, and we have two more passenger vessels

that are coming down in the middle of September.

By the middle of September, there are going to be more boats in the ATM than they’ve had, probably ever,” Miller told THE WEEKLY JOURNAL. He explained that by using a charter mechanism, the PPP partners will be able to “get the rest of their fleet fixed and brought up to the standards that they need to be and, in addition to that, now use the grant money that ATM and the government have for vessel replacement to actually design and build boats that are specifically designed for that route.” Moreover, the new vessels will be built with the same types of engines, propellers and related equipment. This, he said, will reduce costs by providing uniform staff training and getting better rates on parts sales, among others.

Recruiting Local Talent

As informed, HMS has hired 44 workers thus far, but Miller expects to recruit between 185 and 200 local workers as the company progresses in its takeover of operations and maintenance. Of these, eight to 10, including Miller himself, will work in the company’s headquarters in San Juan, 120 or so will be attached to the Ceiba region - which includes Vieques and Culebra - and the rest will work in the Cataño and Old San Juan terminals.

To Miller, hiring Puerto Rican workers is a sound business strategy. “A lot of companies were reluctant to work in Puerto Rico, saying that you have to worry about labor, but that is not a problem. That is why HMS was committed to coming down here. I knew in my gut and in my heart that there will be no problem finding quality, competent, highly trained, highly motivated workers, and we haven’t had that problem at all.

We have 15 quality candidates for one job; it’s just

astounding. Of the 44 employees that we hired, all 44 are top-shelf, just great. I know that those 185 to 200 workers will all be world-class employees, just like what you would get in a five-star resort or in New York or Seattle,” he affirmed.

New Ticketing System

Per the PPP agreement, HMS was supposed to provide a new ticketing system within the first six months of the contract’s enactment. However, ATM reportedly requested the private entity to have this ready in the first month of operations.

“I thought it was important because the old system was going to cost ATM a lot of money to keep it around, while knowing that it was eventually going to go away. We said that we’ll go outside the contract that said we have six months... but we’ll just do it now. My concern about doing it now was exactly what you see in the press sometimes: ‘HMS is providing poor customer service,’” Miller detailed. He clarified that the company has only provided the tools, while ATM employees are in charge of the process.

Asked what may be leading to customer dissatisfaction, the president noted that some workers are having trouble scanning the purchased tickets, but HMS is providing them training to avoid further complications. “We’re building that foundation and it is a lot of work that people don’t see, but they will, if they will just be patient. That foundation is us bringing in our maintenance system, our training system, our safety management system, our ticketing system - our systems, policy procedures, processes and standards - that will help build this foundation that will allow us to operate and maintain it down here like we do everywhere else,” Miller stated.

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GuideWell’s CEO affirmed that Triple-S Management’s understanding of the Puerto Rican and Hispanic communities will help extend the company’s reach in these demographics. >Archive

GuideWell Acquires Triple-S in $900 Million Transaction Looking to expand their respective services in Puerto Rico, Florida

G Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

uideWell Mutual Corp., a health solutions company and parent of Blue Cross and Blue Shield of Florida Inc., announced on Tuesday the acquisition of Triple-S Management, a leading health services provider in

Puerto Rico.

Per the agreement’s terms, GuideWell will acquire all the outstanding shares of Triple-S Management’s common stock for $36 per share in cash, representing a premium of approximately 49 percent to Triple-S Management’s 90-day volumeweighted average trading price. This transaction is valued at roughly $900 million and is expected to be completed during the first semester of 2022.

Roberto García Rodríguez, president and CEO of Triple-S Management, assured that while the company will become a wholly owned subsidiary of GuideWell, it will continue to operate in Puerto Rico under the Triple-S brand. Moreover, the new subsidiary will not change its personnel, so the entity’s members, providers and community partners will continue to work with the staff they know.

“Once this transaction is completed - we expect it will happen in the first half of 2022 - we will continue to operate as Triple-S in this market, but with the

backing, support and know-how of a company that has done a tremendous job in growing,” García stated during a Teams meeting with the head of GuideWell and members of the press.

Pat Geraghty, president and CEO of GuideWell and Florida Blue, asserted that this acquisition will expand GuideWell’s core insurance operations while positioning Triple-S Management “for significant growth and meaningful value creation for the customers and communities we serve.”

Asked if current Triple-S customers in Puerto Rico would have their insurance plans extended in Florida, García said that their focus is on sealing the deal first, “but we’ve already started with an integration team that will be exploring opportunities.”

Meanwhile, the partners stated that the companies will leverage each other’s capabilities and expertise to improve healthcare value for their respective customers. For instance, they project that the transaction will accelerate Florida Blue’s growth in Medicare Advantage and across all lines of business in Florida’s rapidly growing Puerto Rican and Hispanic populations, thanks to Triple-S Management’s understanding of these communities and its strong name and brand recognition in Puerto Rico.

Furthermore, Geraghty explained that the businesses under the GuideWell banner in Florida offer the “typical healthcare coverage,” such as traditional Medicare and Medicare Advantage, as well as at-home care for patients with chronic illnesses, and mental health services. “So, we are interested in the viability of those businesses here in Puerto Rico and we will definitely look into what does that mean in terms of sharing those

capabilities in other services,” he said.

“Uniting our mission-driven, communityfocused teams is a great outcome for our companies, as well as for Puerto Rico and Florida, and our shareholders,” García added. “We have long admired Florida Blue’s locally focused approach to care, and we share their respect for the uniqueness of every community served.

By partnering with a strong organization that shares our mission and approach, we will be wellpositioned to achieve our strategic goals, expand access and improve healthcare outcomes for all our members. The transaction is also clearly in the best interests of our shareholders, given the strategic fit, the significant premium to our current share price, and resulting shareholder liquidity.”

On the other hand, THE WEEKLY JOURNAL asked the CEOs if this transaction would result in layoffs in Puerto Rico. “At GuideWell, I’ve been there 10 years when we were an $8 billion business; today we are a $20 billion business. We expect by making this acquisition that we will grow both businesses. Our focus is not on reducing staff. Our focus is on growing the business and that will obviously have a positive impact on employment,” Geraghty stated.

“We have tremendous trust in [García] and his team and we feel that we have similar cultures, a similar focus on our efforts. We’re both in the business to serve our members and to serve our communities - that is an important ethic in our organization and we see that here in Triple-S, and that will be strengthened by our combination. We will accelerate our plans together to continue to grow within Florida with greater insight into the Hispanic community,” Geraghty said.

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IEEFA Report on LUMA’s First Two Months of Operations

LUMA disputes findings of ‘delays’ and ‘poor service’ rfajardo@wjournalpr.com

@RosarioWJournal

UMA Energy is disputing the primary findings of a report by the Institute for Energy Economics and Financial Analysis (IEEFA) that found “delays, damages and poor service” during the first two months of LUMA’s operations in charge of Puerto Rico’s electrical grid.

Since the June 1 takeover, Puerto Ricans have experienced significant problems as a result of LUMA’s implementation of its electric transmission and distribution services. The issues include longer service restoration times, voltage fluctuations and poor customer service, according to the IEEFA. “Puerto Ricans have experienced significant problems with the implementation of the contract, including longer service restoration times, voltage fluctuations and poor customer service. High-level has hired fewer than 30 percent of the former government officials have acknowledged that Puerto Rico Electric Power Authority (PREPA) service has worsened under LUMA, which already workers. LUMA has been trying to operate the has been paid almost $180 million,” according to system with about 60 percent of the number of the August 2021 IEEFA report PREPA employees who did the authored by Cathy Kunkel and same work,” stated the report.

Tom Sanzillo.

Incorrect again, LUMA said.

“Incorrect. The transmission “LUMA has the necessary and distribution system remains workers and equipment to LUMA’s fragile and deteriorating at a rate meet the needs of the system. contract passed the of 20 percent per year due to lack About half of LUMA’s workforce scrutiny of the Puerto of maintenance,” LUMA said in a is made up of former PREPA Rico government written statement to THE WEEKLY employees, who had priority in and all the entities JOURNAL. the hiring process over external that represented it “LUMA is focused on stopping candidates.” in the contracting the deterioration by attending Another finding by the IEEFA process. In addition, to the needs of the system is that LUMA has refused to the contract had the and making decisions based provide information requested by endorsement of the on accurate data. LUMA is a the Puerto Rico Legislature, and Financial Oversight customer-focused company no oversight documents related and Management and offers multiple ways to get to LUMA’s performance in the Board and U.S. service, including new channels last two months have been made District Court of like the Mi LUMA mobile app, public.

Puerto Rico. which has been downloaded “This matter is before the by more than 250,000 users. consideration of the judiciary In this initial stage, LUMA has and LUMA does not comment on received a high volume of calls, active cases before the courts,” which reached 100,000 calls in a LUMA said in response. week,”the company said.

Finally, implementation problems can be According to the IEEFA, LUMA’s problems stem directly traced to flaws in the LUMA contract, from its shortage of experienced employees. “It including its treatment of PREPA’s workforce and

In fact,

>Courtesy of LUMA

L Rosario Fajardo

You want to be fair and give LUMA time to improve a very bad situation. But it is not too early to see a weak recruitment effort and poor customer service.

-Cathy Kunkel of the IEEFA

its weak oversight provisions, charged the IEEFA. “This is incorrect. The contract passed the scrutiny of the government of Puerto Rico and all the entities that represented it in the contracting process. In addition, [the contract] had the endorsement of the Financial Oversight and Management Board of Puerto Rico and the federal court of the District of Puerto Rico, where the Title III [bankruptcy] case of PREPA is heard,” LUMA said.

“Regarding the supervision of the contract, the Public-Private Partnerships Authority administers it on a daily basis, and the Puerto Rico Energy Bureau is the regulator that approves the annual budget and LUMA’s performance,” the company added.

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Local Company Finds Success With Hydroponic Crops Fusion Farms of Mayagüez looking for export opportunities

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he company Fusion Farms, which has been engaged in hydroponic agriculture since 2018, will increase its growing space by more than 500 percent due to the demand for its products, which are grown in former Puerto Rico Industrial Development Company (PRIDCO) facilities.

The sustained growth of the company will take a major leap with the new expansion, which has required an investment of $3 million and will benefit from grants exceeding $400,000.

The company, which currently has 18 He said the company has received requests employees, grows a variety of lettuce, kale, arugula from the mainland United States, Europe and and spinach, as well as a range of herbs and the Caribbean to replicate its model. From the spices, including types of mint, basil, watercress, island of Barbados to Norway - he said - there are edible flowers, strawberries and micro herbs, people interested in farming with the company’s according to Kendell Lang, who hydroponic system. founded the company with his The headquarters of the first wife Lisa Jander. phase of expansion of Fusion “We have undertaken this Farms is located in the Guanajibo project with great passion Industrial Park of Mayagüez, Kendell Lang and with the desire to provide where the company occupies a of Fusion Farms said consumers with nutritious locally building of 11,500 square feet. they have received grown products that can be With the new expansion, they will requests from the available all year round,” Lang increase the space for cultivation mainland United said, reporting that as a result of by more than 500 percent and States, Europe and the COVID-19 pandemic, there their production capacity by over other Caribbean has been greater demand for 1,200 percent, Lang said. He jurisdictions to fresh products. That, he added, indicated that when compared replicate their has led them to increase their with traditional agriculture, the business model. operations in Mayagüez and vertical indoor harvesting system From the island evaluate other locations in they use allows obtaining nine of Barbados to various industrial parks that have to 12 times the annual yield, Norway, people are been abandoned. with 95 percent lower water interested in farming “Since we started, we have had consumption, which represents with the company’s broad support from our clients a greater efficiency in all the hydroponic system. and we appreciate their trust, resources of the company. vision and commitment to join us “The amount of food needed in this initiative to help strengthen to satisfy the world’s population our agriculture with innovative in the next 30 years will exceed technology and thus, contribute the food available by 100 percent. to reducing imports of fresh products with local This type of innovative agriculture represents an produce of optimal quality,” Lang added. ideal solution to help grow food consistently and

In fact,

>Courtesy of Fusion Farms

THE WEEKLY JOURNAL STAFF

with environmentally responsible methods that support and positively impact the potential for achieving food sovereignty in the country,” Lang noted.

He explained that in the warehouses transformed into growing areas, the temperature, humidity and other variables are controlled to guarantee world-quality produce that are free of pests, pesticides and the impact of “climate changes” that may affect them, whether it’s a drought or heavy rains. He stressed that this type of environment promotes and optimizes accelerated growth in 28-day cycles and allows food to be grown 24 hours a day, 365 days a year.

According to Lang, with this technology, the local market can consume fresh hydroponic crops of the highest quality and contribute to reducing the percentage of agricultural imports. He also said that Fusion Farms is targeting the adoption of solar energy for its operations and has implemented processes to reduce, reuse and recycle its waste to guarantee optimal sustainability methods in their company.

Since the founding of the company, Lang said that they established an agreement with the University of Puerto Rico in Mayagüez (RUM by its Spanish acronym) to collaborate with the institution’s Agricultural Sciences and Agronomy departments. “Today, we have college student interns, scientists from the university community, as well as RUM graduates who are an integral part of our team,” he said.

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David L. Gulley

Director of the PRSTRT Technology Transfer Office (TTO)

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Puerto Rico Ranks No. 2 in U.S. Patent Trends, and Tech Transfer Makes an Impact

he State Science and Technology Institute (SSTI) released its “Useful Stats” on June 17, 2021, which presented an analysis of U.S. Patent and Trademark Office (USPTO) data for utility and plant patents granted in the U.S. by state/territory from 2016 to 2020.

These types of patents are usually associated with inventions of new products and services.

Patent activity is considered an indicator of the health of innovation ecosystems and can originate from inventors across academia, industry and the public sector. Trends over time provide an understanding about sector strengths and gaps, and

assist program and policy makers in developing initiatives to support their local innovation ecosystem.

The analysis of the five-year average annual growth rate in patents granted (2016 to 2020) showed the greatest average rate of change was the District of Columbia (19.1 percent), followed by Puerto Rico (15.2 percent), Arkansas (15.2 percent), Alaska (9.2 percent), and Connecticut (8.9 percent). While Puerto Rico’s increase was ranked second, the actual numbers have been low, which reveals the gap between R&D and patent activities.

The Puerto Rico Science, Technology and Research Trust’s (PRSTRT) Technology Transfer Office (TTO) was established in 2016 to address the “patent gap” by partnering with Puerto

Rico’s universities and their scientists and researchers to identify important discoveries supported by research funding. In fiscal year 2019, those universities performed $121 million in total research and development (R&D), with $79.9 million in federally funded R&D, about 86 percent of the total in Puerto Rico.

As I have stated before, we are grateful to be able to support our university partners and make a positive impact on the innovation ecosystem.

The TTO supports the evaluation of important research discoveries, protection of intellectual property, marketing globally to the private sector, and then transfers the technology through licensing and other agreements to the private

sector. TTO university partners include the University of Puerto Rico System, Ana G. Méndez University System, Ponce Health Sciences University/ Ponce Medical School Foundation, Universidad Central del Caribe, and San Juan Bautista School of Medicine.

Since 2016, the TTO has received 101 invention disclosures, filed 19 U.S. patent applications and 16 foreign patent applications using highly qualified patent firms with scientific expertise in the field of the invention. Each patent application then proceeds through stages of prosecution and examination, which may take from 12 to 36 months or more and, if successful, a patent will be granted. From 2016 to 2020, there were at least 46 U.S. patents granted to universities in Puerto Rico.

Víctor Rodríguez

Public Affairs Specialist (Puerto Rico and the USVI) Social Security Administration

E

What Did You Earn in Your First Job? Social Security Can Tell You

ver wonder what you earned the year you worked your first job?

Or perhaps any other year you worked?

We can tell you. Your earnings history is a record of your progress toward your future Social Security benefits.

We keep track of your earnings so we can pay you the benefits you’ve earned over your lifetime. This is why reviewing your Social Security earnings record is so important.

While it’s your employer’s responsibility to provide accurate earnings information to us, you should still review your earnings history and inform us of any errors or omissions.

This is so you get credit for the contributions you’ve made through

payroll taxes. You’re the only person who can look at your lifetime earnings record and verify that it’s complete and correct. If an employer didn’t properly report even just one year of your earnings to us, your future benefit payments could be less than they should be. Over the course of a lifetime, that could cost you tens of thousands of dollars in retirement or other benefits to which you are entitled.

It’s important to identify and report errors as soon as possible. As time passes, you may no longer have easy access to past tax documents. Also, some employers may no longer exist or be able to provide past payroll information.

The easiest way to verify your earnings record is to visit www.ssa. gov/myaccount and set up or sign in

to your personal “my Social Security” account. You should review each year of listed earnings carefully and confirm them using your own records, such as W-2s that the employer must provide annually to every employee.

If you are self-employed, seek orientation with Internal Revenue Service (IRS) on your responsibility to timely file your Social Security selfemployment tax returns. You may call the IRS at 1-800-829-1040. Keep in mind that earnings from this year and last year may not be listed yet.

You can find out how to correct your Social Security earnings record by reading our publication, “How to Correct Your Social Security Earnings Record” at www.ssa.gov/pubs/EN-0510081.pdf.

Let your friends and family

know they can access important information like this any time at www.ssa.gov and do much of their business with us online.

Due to the COVID-19 pandemic, we could not receive visitors at our field office, except for previously arranged appointments on special limited critical situations. However, we continue providing our services by phone and internet. If you have questions on Social Security benefits and services, please access www.socialsecurity.gov.

You can also access our automated services at 1-800-772-1213 or call your local Social Security office Monday to Friday from 9 a.m. to 4 p.m. To locate the telephone number of your local field office, please input your residential zip code at www.ssa. gov/locator/.

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/ Wednesday, August 25, 2021

Puerto Rican Scientist Showcases Arecibo Observatory in Children’s Book ‘Good Night Little Astronomer’ aims to foster diversity in STEM

D Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

r. José Morey, an expert in radiology, artificial intelligence and space science, has launched his third children’s book, “Good Night Little Astronomer.”

As part of the “Good Night” literature series for children ages three to five, this most recent addition explores the mind of a little girl as she dreams about “discovering planets and learning about the atmosphere, seeing objects outside of the Earth, and playing different roles,” he explained.

Morey, a Puerto Rican living in the U.S. mainland who is known as the ‘Intergalactic Doctor’ for his proficiency across multiple fields, said that the 28page book also features illustrations of the Arecibo Observatory, thanks to an agreement between the entity and Ad Astra Media, the company developing the book series.

The story also brings attention to some of the Arecibo Observatory’s discoveries, such as the Crab Nebula neutron star. “We have to describe it in a way that might not be too on the nose, but a three- to five-year-old may start to learn about the amazing science that the Arecibo Observatory has discovered for us,” Morey said.

Each book in the “Good Night” series is available in both Spanish and English. Currently, “Good Night Little Astronomer” is sold on Amazon but, as with its predecessors, it will eventually be available at Walmart, Barnes & Noble, and other bookstores. “Then, we have a new book that’s going to be coming out every two or three months.

For the next 24 months, we have ‘Good Night Little Aviator,’ ‘Good Night Little Epidemiologist,’ ‘Good Night Little Computer Scientist.’ We have a bunch more that are coming out over the course of the next two years,” Morey added.

Arecibo Observatory a ‘Cornerstone’ in STEM

Asked to elaborate on the significance of showcasing the Arecibo Observatory in the “Little Astronomer” story, he said that the institution has been “a cornerstone of science and technology, not just for the Puerto Rican community, but also

In the book, Lauren is inspired to pursue a scientific career. >All photos are courtesy

for the international community.” He stated that his goal, apart from inspiring kids to pursue STEMrelated careers, is to shed awareness on Puerto

Rico’s contributions to science and the island’s potential to become a key innovator.

“I wanted to bring attention to the importance that Puerto Rico has had in science and technology, specifically, space science and astronomical science, and the importance of this Observatory to the island and the space science community... We need to make sure that we don’t just rebuild the telescope, but we need to invest even more into the Observatory because it has done so much for space science and the island,” the medical doctor said.

On Dec. 2020, the international scientific community was shocked after the Arecibo Observatory’s radio telescope collapsed. In July, the U.S. House Appropriations Committee approved an investigation into the catastrophe.

Meanwhile, a group of scientists wrote a report titled, “The Future of the Arecibo Observatory: The Next Generation Arecibo Telescope,” in which they underscored the need to rebuild the iconic telescope, saying that it will “serve the population of Puerto Rico by inspiring and educating new generations while contributing to the socioeconomics of the island.”

“We need to ensure that we rebuild and we need to ensure that we do something bigger and better,” Morey affirmed. “Beyond just the pure space science, we need to use it as it has been - we need to expand its reach so that it reaches young kids from all aspects of Latin America and all over the world to see Puerto Rico as this shining star of science that it can be. Also, have the brightest minds of the world be inspired to come to Puerto Rico to learn about science and to hopefully start science and other STEM businesses that will continue to transform the island into the Silicon Island that I believe it can be.”

“Good Night Little Astronaut” features illustrations of the Arecibo Observatory and its former radio telescope.

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/ Wednesday, August 25, 2021

The Puerto Rico CubeSat NanoRocks-2 will be launched into space this weekend. >Inter News Service

First Puerto Rican Satellite to Launch From Cape Canaveral On Saturday, Aug. 28 at 3:37 a.m.

T

The Weekly Journal Staff

he president of the InterAmerican University of Puerto Rico (Inter), Manuel J. Fernós, reported that the first Puerto Rican satellite, the Puerto Rico CubeSat NanoRocks-2 (PRCuNaR2), will be launched into space at 3:37 a.m. on Saturday, Aug. 28 from Cape Canaveral, Florida.

As part of Mission 23 of the SpaceX company, the satellite developed and built by students of the Engineering School of the Bayamón campus is part of the ElaNa 36 project of the National Aeronautics and Space Administration (NASA). PR-CuNaR2 will be the first Puerto Rican satellite to be launched into space. The satellite, which weighs 5.6 pounds and measures four inches wide by four inches long and 12 inches high, completed its tests in July.

The PR-CuNaR2 will be transported and launched from SpaceX’s Falcon 9 rocket, and is constructed of aluminum, photovoltaic cells, batteries and other materials approved for use in space. In turn, PR-CuNaR2 will study the origin and development of planets and young stars, explained Prof. Amílcar Rincón Charris, head of the project.

“On Saturday, all Puerto Ricans have an appointment with history. That day we will proudly celebrate the achievement of being able to take a satellite built by Puerto Rican hands into space,” Fernós stated. In the event that it cannot be

launched on Saturday, NASA is scheduled to try Station. The initial trip, from takeoff to arrival again at 3:14 a.m. the next day. at the International Space Station (ISS), will last Moreover, Rincón Charris invited the public approximately nine hours. Once the satellite to witness this event that positions Puerto Rico reaches the ISS, it will wait for the orbit of 51.6 as one of the few nations that has been able to degrees, to be launched into space through an place satellites in space and study the formation extendable arm that the Nanoracks company has of the universe. “This is a good on the Space Station. The satellite time to educate our children and has been prepared to orbit for youth in science-related topics, two years, but it could be longer. but parents and educators can Then, it will be attracted by the also address issues such as the atmosphere until it disintegrates. importance of setting goals, Inter’s team that developed Once the being persistent and working as a the project, chose the 56-degree satellite has been team,” the professor said. orbit to place the PR-CuNaR2 so launched, its Some 65 students, male that it can pass over Puerto Rico trajectory can be and female, have been part twice a day for 10 minutes. In this seen from Inter’s of the development of PRway, the satellite will pass the website (inter.edu) CuNaR2, which began in March island more times than in other and the satellite’s 2018, although the design and orbits. When the satellite passes webpage (prcunar2. construction prototype began in over Puerto Rico, the team that is org).

2013. The academic added that located in the Bayamón campus many of the students who have will know - through telemetry been part of this project have and videos - what is happening already graduated. with the satellite and will collect the data provided for its subsequent analysis and publication.

Details of the Study This project has been sponsored and supported Inside, the satellite has stainless steel and silicon by the NASA Puerto Rico Space Grant Consortium, microparticles that emulate asteroids. As it orbits the Central Florida University, the University of in space, the microparticles will be colliding. During Michigan, the Florida Space Institute, Aerospace this process, a camera will be taking photographs Corp. and the local Engiworks and Precision and videos of the microparticles to be sent to the Experts.

Inter-Bayamón. Then, this content will be studied Once the satellite has been launched, its by the Florida Space Institute and the Physics trajectory can be seen from Inter’s website (inter.

Department of the University of Central Florida edu) and the satellite’s webpage (prcunar2.org).

(UCF), entities that collaborate in the research.

Both pages will also feature additional information PR-CuNaR2 will be launched in the Dragon about the satellite. capsule from SpaceX23 to the International Space

In fact,

15

/ Wednesday, August 25, 2021

Pathfinder Reinvents Itself With Cutting-Edge Tech Comfort and flexibility for the modern family

hirty-five years after the original model was launched, Nissan Pathfinder returns to its robust roots with advanced safety and technology features that provide a new approach to maximize the comfort and safety of the entire

>All photos are courtesy

T

The Weekly Journal Staff

family.

With a completely new look, Pathfinder 2022 presents a robust look that is both modern and elegant. Its exterior incorporates the attributes of the new Nissan design line, such as the V-motion grille, standard LED lights, and a floating roof. As a tribute to the original design, some of its iconic features are integrated, such as the three grooves in the grill area, U-shaped mudguards, and a diagonal structure, which also favors two-tone combinations, a first for the model.

A total of 15 color options are offered. The new two-tone combination of Scarlet Ember with Super Black Metallic provides a high-energy feel. Its bright red hue is similar to the iconic color of the original Pathfinder, while the new Obsidian Green Pearl is dark green with a pearl touch that symbolizes outdoor adventure.

4WD models feature Nissan’s all-new Intelligent Traction System with a selector of seven terrain modes: Standard, Sport, Eco, Snow, Sand, Mud and Trailer. Also integrated are a new dual-pinion electric power steering system and suspension upgrades that, along with a 50-percent increase in high-strength steel, lead to a safe, high-quality driving experience.

Pathfinder 2022 features a towing capacity of up to 6,000 pounds, the largest in its category, ideal for accompanying adventurous families on the way to their favorite activities like a boating or camping trip.

“The new Pathfinder offers a different and innovative experience, with ideal characteristics for an exciting, pleasant and safe trip,” said Juan Santana Chea, Nissan’s commercial director at Motorambar, the brand’s distributor in Puerto Rico.

“We are very excited to present a new generation of this iconic legend in Puerto Rico.”

Advanced Technology, Connectivity and Security

A new available 12.3-inch digital dash provides the driver with a variety of easy-to-navigate display

options. New to Pathfinder, a 10.8-inch Head-Up Display allows the driver to view their preferred content, such as speed and navigation indicators, while still concentrating on the road. A nine-inch

color touchscreen also provides easy and accessible visibility for the driver and front passenger.

Pathfinder offers Apple CarPlay and Android Auto systems as standard at all grade levels. While, as available, it includes a wireless charging pad for smartphones, wireless integration with Apple CarPlay, and a Bose Premium sound system with 13 speakers. Furthermore, the available Intelligent Digital Peripheral Vision Monitor features higher resolution and a wider image angle of view than the previous model. This class-exclusive system can also detect moving objects around the vehicle.

Pathfinder 2022 comes equipped with Nissan Safety Shield 360 safety and assistance systems, part of the Nissan Intelligent Mobility brand vision, which seeks to transform the way vehicles are driven, powered and integrated into society.

Included as standard in all grades are Automatic Pedestrian Detection Emergency Braking, Blind Spot Warning, Rear Cross-Traffic Alert, Lane Departure Warning, High Beam Assist, and Rear Automatic Braking. Class-exclusive, Intelligent Forward Collision Warning, Intelligent Driver Alert, and Tailgate Alert are also standard, while Blind Spot Intervention and Intelligent Lane Intervention are available.

Moreover, for the first time, Pathfinder offers Nissan’s innovative ProPILOT Assist system, a practical driver assistance technology that reduces highway driving fatigue and facilitates long trips on the open road.

Pathfinder 2022 is offered in 2WD and 4WD modes in four trim levels: S, SV, SL (also available with the Premium package), and Platinum.

Suggested retail prices range from $43,210 to $62,830.

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