The Weekly Journal, Wednesday,December, 28 2022

Page 1

The plan, filed with the U.S. District Court for the District of Puerto Rico on Dec. 16, proposes to cut PREPA’s “unsustainable debt” by 48%, to approximately $5.4 billion, the oversight board reported in a press release, adding that the plan “should provide the financial stability necessary to invest in a modern, resilient, and reliable energy system for Puerto Rico.”

This would be the fourth attempt since 2014, when PREPA started to default on its debt, to restructure the bankrupt utility’s debt, which

Wednesday, December 28- January 3, 2022 - // no. 191 www.theweeklyjournal.com Puerto Rico and the Caribbean GO TO PAGE 4 21 FOREIGN CORPORATIONS AUTHORIZED TO DO BUSINESS P6 U.S. CONSUMER CONFIDENCE BOUNCES BACK P8 ARE WE READY FOR EVS? P10 GARAGE ISLA VERDE: 60YEARS OF SERVICE P14/15 PROPOSED PREPA DEBT PLAN PROMPTS DEBATE Concern over viability of proposal, rate charges to cover $10B debt
Alvarado
B
and other creditors as well as local citizens and the commonwealth government are gearing up for battle over the future of the
Electric
Puerto
earlier this month a proposed plan of adjustment
to restructure more than $10 billion in debt and other claims against the bankrupted public utility.
José
Vega, Special to The Weekly Journal
ondholders
Puerto Rico
Power Authority (PREPA), after
Rico’s Financial Oversight and Management Board (FOMB) submitted
(POA)
2 The Weekly Journal > Wednesday, December 28, 2022 >

a week in review

“Fiestas de la Calle san sebastián”: a long-awaited return

The traditional “Fiestas de la Calle San Sebastián” in Old San Juan are returning the weekend of Thursday, January 19 through Sunday, January 22, 2023. Under the slogan “Brilla La Tradición”, the festival returns after a two-year hiatus caused by the COVID-19 pandemic. In the 53rd edition of the Fiestas de la Calle San Sebastián, in addition to a variety of musical offerings, efforts will also be aimed at promoting the cultural essence and traditions at the core of the festival, such as the mass and procession celebrated in the name of San Sebastián; as well as the traditional Period Ball that hasn’t been held in a few years. This year’s festivities will be dedicated to basketball player José Juan Barea, journalist and meteorologist Ada Monzón and “El Niño de Trastalleres,” Andy Montañez. President Salvador Hasbún shasbun@elvocero.com

Cookie Plug Makes Cookies Cool

Cookie Plug, a popular freshly-baked cookie tranches, will be opening a first location in Puerto Rico in early 2023. Cookie Plug’s brand combines street art and hip-hop culture to create a different consumer experience. After an initial investment of approximately $100,000, and creating 20 jobs, the first Cookie Plug shop will be located on Ashford Avenue in the Condado area and will be recognizable by its urban art style. Each Cookie Plug location offers 17 different freshly-baked cookies daily with a variety of flavors and low-carb alternatives. Cookie Plug cookies, a mix of brownie, biscuit, and cake, measuring about four inches across and one and a half inches thick, are a different treat than traditional cookies.

MadMi aMong the toP 10 best art MuseuMs

The Miramar Museum of Art and Design (MADMi) was named among the “10 best art museums in the United States that should be on your bucket list” by the American publication Best Life. The article highlights the location of the museum within its historic French neoclassical house and explains how the art and design presented in the rooms serve as an example of the changes that occurred in Puerto Rico under the effects of Modernism. Also, the museum is dedicated to presenting a varied, inclusive, accessible and committed programming for the different sectors of the community. Currently, the museum exhibits “TRANSFORMATIONS”, a selection of 36 works from the Puerto Rican and Latin American collection of the Ponce Art Museum.

/ Wednesday, December 28, 2022 3
Marketing
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Rosa frosa@elvocero.com VP of Production Eligio Dekony edekony@elvocero.com Human Resources Director Arlene Rolón, PHR arolon@elvocero.com VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com Multi-Platform Graphic and Technology Director Héctor L. Vázquez hvazquez@elvocero.com Multi-Plataform Digital Director Rafelli González Cotto rgonzalez@elvocero.com
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includes $4 billion in unfunded pension liabilities.

Two classes of creditors agreed to support the proposed utility POA, which the oversight board said should satisfy the legal requirement that at least one class of impaired claims must accept to allow the court to make the plan binding against all other classes of claims. Outside an agreement in principle with bond insurer National Public Finance Guarantee Corp. –subject to documentation of the final terms– there is currently no agreement with the holders and guarantors of $7.6 billion of other PREPA bonds.

The proposed POA would allow those bondholders to join a settlement class with a guaranteed minimum distribution, or to join a class whose distribution will depend on the outcome of litigation the FOMB resumed in September to limit bondholders’ lien on PREPA’s revenue and to limit their allowable claim on which they may be paid distributions.

The class for bondholders desiring to settle proposes a minimum 50% recovery for those bondholders subject to additional potentially large incremental payments if the bondholders desiring to litigate do not prevail against PREPA, according to the POA. The class for bondholders desiring to litigate will receive distributions based on the court’s determinations of two principal issues, according to the FOMB, which stressed that it will “continue to negotiate with creditors in the hopes of avoiding expensive and time-consuming litigation.”

Overall, for most creditors under the plan, PREPA would issue new bonds with a 6% annual interest rate (coupon), paid by a hybrid charge consisting of a flat connection fee and a volumetric charge that would be added to PREPA customers’ electricity bills based on their electricity usage. The oversight board acknowledged that it has not determined how the charge will be implemented and the impact on individual households and businesses, but stressed that the average charge under the filed POA would be “roughly half” of what PREPA’s existing debt would cost customers for the 35-year term of the bonds.

Moreover, the proposed POA stipulates that if PREPA repays its new bonds sooner than the expected 35 years, bondholders would receive the revenue from the connection fee and the volumetric charge through year 35 if the public utility outperforms the projections of the certified PREPA fiscal plan. The oversight board assured that the plan is consistent with the support agreement the fiscal panel reached with fuel line lenders to reduce their claim of more than $700 million by 16% and with the support agreement with Vitol Inc.

The estimated $800 million general unsecured claims will receive distributions based on the outcome of the bondholder litigation, according to

the oversight board.

The restructuring support agreement (RSA) concluded in 2019 with Prepa creditors, which Gov. Pedro Pierluisi’s administration decided to cancel in March alleging it was economically inviable, included a 32-percent debt cut accompanied by several surcharges on utility customer bills over the 45-year life of the securitized life of the bonds.

Controversial Charges

The proposed fee and charge in the latest plan, as was the case with those in the 2019 RSA surcharges, have been the subject of public controversy, as rising fuel prices throughout 2022 have increased average electricity rates in Puerto Rico to above 30 cents per kilowatt hour.

FOMB Chairman David Skeel stressed in the press release that “Puerto Rico residents and business simply cannot pay what some creditors demand at this point,” he acknowledged that “every member of the Oversight Board is keenly aware that the residents and businesses of Puerto Rico will have to shoulder the payments of this greatly reduced debt through their electricity bill.”

Oversight board member Justin Peterson said in a press release that he voted against the proposed POA because he believed the plan “treated bondholders unfairly.”

“I believe [the plan] was predicated on financial analysis produced to solve for a desired outcome– to pay as little as possible,” Peterson wrote. “The Oversight Board’s unilateral approach to mediation was disappointing. It prevented a global deal with all bondholders that was within reach.”

U.S. District Judge Laura Taylor Swain, who oversees Puerto Rico’s bankruptcy process, overruled on Dec. 23 objections by certain creditors to the oversight board’s urgent motion to set a hearing date for the disclosure statement – involving the discussion on whether the POA document has all of the necessary information for the creditors to be able to make an informed decision before voting on the plan. The federal judge established next Feb. 3 and Feb. 10 to file objections to the hearing schedule and for replies thereof, respectively, and set the disclosure statement hearing date for next February 28.

Judge Swain also ordered the FOMB and Prepa to file, “on or before next January 27, at 5:00 p.m. (Atlantic Standard Time), the load forecast and illustrative cash flow for new bonds and the best interests test reports.”

Both the Ad Hoc Group of PREPA Bondholders and the Official Committee of Unsecured Creditors (UCC) filed limited objections to the urgent motion to schedule a disclosure statement hearing on the proposed POA. The Ad Hoc Group argued in its Dec. 21 filing that the oversight board “submitted a patently unconfirmable placeholder plan,” which the group says is accompanied by a disclosure statement that “fails to provide information that

is either accurate or sufficient to allow creditors to make informed decisions on whether to vote for that plan.”

The Ad Hoc Group states that the plan “arbitrarily proposes” to pay PREPA’s bondholders and other creditors billions of dollars less than the $7.8 billion the oversight board publicly conceded PREPA can afford to pay as recently as Nov. 8. The group called on the judge to start plan-related discovery immediately instead of waiting until Feb. 28.

For its part, the UCC has no objection to the proposed briefing and hearing schedule for

/ Wednesday, December 28, 2022 4
CONTINUED FROM PAGE 1
>Josian E. Bruno Gómez / The Weekly Journal
This would be the fourth attempt since 2014, when PREPA started to default on its debt, to restructure the bankrupt utility’s debt, which includes $4 billion in unfunded pension liabilities.
In fact,
Every member of the Oversight Board is keenly aware that the residents and businesses of Puerto Rico will have to shoulder the payments of this greatly reduced debt through their electricity bill.
David Skeel, FOMB Chairman

approval of the disclosure statement, provided that the oversight board “timely files,” no later than 35 days prior to the disclosure statement objection deadline, a “complete copy” of the disclosure statement “with all exhibits and schedules.” The UCC also requested that the FOMB be required to respond to discovery requests from parties in the case, stressing that the fiscal panel had accepted similar procedures during the process to approve the commonwealth POA.

Attorney Rolando Emmanuelli Jiménez, who has represented Prepa unionized workers and pensioners in the bankruptcy process, said during a recent radio program that the PREPA POA approval process could last until July of next year and will involve several steps starting with the discovery of evidence involving the disclosure statement.

“The process for the approval of the disclosure statement will involve litigation because there will be creditors who will argue that the disclosure statement is incomplete or has incorrect information,” he said, adding that the 900-page plan is “is very preliminary, something that will suffer many changes.”

“In fact, the supposed [rate] increase proposed by the oversight board is not defined,” the attorney said, stressing that the final numbers will rely on the outcome of litigation over bondholder guarantees that have not concluded. “This plan will undergo an infinity of changes. The [POA] was amended 14 times.”

Key To Island’s Economy

Emmanuelli said he believes the PREPA bankruptcy process will turn out to be the most important one under the federal Puerto Rico Oversight, Management and Economic Stability Act (Promesa), stressing that the final plan will not only affect the adjustment plans of the other entities, but also the performance of Puerto Rico’s economy during years to come.

“There are many things in the plan that has to create apprehension, particularly among the people of Puerto Rico concerning rate hikes, and among [Prepa] workers regarding their retirement plan,” the attorney said. “When the electricity rate is more than 16 cents per kilowatt hour the economy does not grow. And if the economy does not grow you cannot pay the central government debt, there is noncompliance and the cycle starts all over again.”

“Is the adjustment plan viable or not? Will Prepa come out strengthened from the debt-adjustment

process or will it go headlong to a second bankruptcy? These are questions that those participating in the plan confirmation process must address,” Emmanuelli questioned.

He said that a “significant number of disbursements [to creditors] will be made, and it will be a like sentence in the sense that we will never be able to lower energy costs to reasonable costs…”

“The risk that the agreement is so bad that Prepa cannot solve its problems is very high. In the last decade Prepa has lost 18 percent of its demand, and the oversight board’s projections say it could lose even more demand due to population loss,” he said. “The problem is having electricity rates above 30 cents per kilowatt hour forever. This will discourage investments on the island and grow poverty.”

Puerto Rico Energy Bureau to set electricity rates and review PREPA bond issues. The proposed plan also includes a provision that prohibits the legislature from legislating on retirement plans, as it was done in the central government, he said.

In fact,

PREPA would issue new bonds with a 6% annual interest rate (coupon), paid by a hybrid charge consisting of a flat connection fee and a volumetric charge that would be added to PREPA customers’ bills.

The attorney said that discussion during the disclosure statement process will focus on displacement of laws by the proposed POA, namely the threat to the authority of the

Several factors, including citizen participation, could led to better outcomes for consumers and workers, Emmanuelli said.

“There is hope for retirees if the FOMB wins the guarantee case, which will allow substantial financing for the retirement fund. The legislature has a bill to protect the retirement system,” the attorney said. “There are battles inside and outside of court. That happened with the commonwealth POA. If it weren’t for the tenacity of pensioners outside of court and inside of court Central government pensions would have been cut the 8.5% planned by the FOMB and the debt adjustment plan. That was a significant victory.”

/ Wednesday, December 28, 2022 5
I believe [the plan] was predicated on financial analysis produced to solve for a desired outcome– to pay as little as possible.
Justin Peterson, FOMB member

Food production estimates for 2024 are reduced after recovery from natural disasters

It is estimated that only 10% of the food consumed is produced on the island

The projected increase in food production estimated by Secretary of Agriculture Ramón González, was adjusted to 40% from its initial 50% by 2024, due to the damage caused by Hurricane Fiona to the agriculture.

González informed expectations were reduced due to the shortage of agricultural staples such as plantains, bananas and eggs, a situation farmers are currently working with.

“In sectors such as plantains and bananas, which are the second largest gross income producers, we are talking about many millions of dollars [in losses]. It is a strong impact, so it will take us a year or a year and a half [to recover the crops]. We will be growing a lot next year in the egg sector and we could probably be able to make (the projection) it by the end of the term,” González said.

Since the 1980s, Puerto Rico has not been able to produce 40% of the food it consumes, according to information compiled by the College of Agricultural Sciences of the University of Puerto Rico in Mayagüez. It is estimated that only 10% of the food consumed is produced on the island, while the remaining 90% is imported by sea or air. On 2012, only 15% of the island’s total food consumption was produced.

“After Fiona hit the island, we have seen that all the farmers we have visited or talked to are on their feet and eager to recover their farms. The vast majority [of the farms] are in operation. Obviously, those growing long-term products, are still planting and waiting to harvest,” pointed González.

Personnel from the Department of Agriculture have met with more than 60 farmers from the south of Puerto Rico since last September.

“They are generally in a good mood. There will always be someone who is having specific needs and we are here to support them in whatever way is necessary,” he added.

Shortage Of Labor

As it is the case with other economic sectors, González said farmers are also facing a shortage

of workers in their farms, which they have been managing with foreign labor.

“Many of them already had foreign workers. That is the problem that keeps repeating itself: labor force,” the Secretary insisted.

Puerto Rico Farmers Foundation president Vanessa Piñeiro reported that only 0.002% of the population in the Puerto Rico is dedicated to agricultural work and she stressed it is urgent to change these numbers.

Piñeiro pointed out that, after the onslaught of Hurricane Fiona, all agricultural sectors are working on their recovery. Such is the case of coffee plantations, which were among the most damaged.

She insisted on the importance of educating the consumer to support and buy the local products in order to increase agriculture’s economic activity.

For the agronomist Abraham Rosa, there are alternatives for the agriculture sector and he recognized the efforts of farmers.

“Resilience is key, farmers need to reinvent themselves and they are doing it,” he said.

For her part, agronomist Sol Rosado warned that if the development of agricultural professionals is not prioritized, there will be no progress in Puerto Rico.

She called for greater attention to the matter because “a country without agriculture is a country that cannot progress.”

Meanwhile, Iris Jeanette Rodríguez, owner of a coffee and cocoa farm in Adjuntas, assured that after Hurricane María, in 2017, farmers have come together to revive the agricultural industry and they have continued to do so after other atmospheric events.

“We have challenges every day. The attitude with which we face them is what makes the difference”, argued the founder of ProCafé.

Regarding the Department of Agriculture’s intention to expand agricultural production on the island and reduce food imports, Piñeiro insisted that farmers are the most important part of the Puerto Rican economy and they should be a priority.

“Throughout the world, agriculture is the wealth of nations. You have to recognize the importance of food at breakfast, lunch and dinner. Our challenge is for Puerto Ricans to understand that we have become a fishbowl, where they bring us food and throw it at us. The world is changing”, said Piñeiro.

/ Wednesday, December 28, 2022 6
Resilience is key, farmers need to reinvent themselves and they are doing it.
Abraham Rosa, agronomist
Since the 1980s, Puerto Rico has not been able to produce 40% of the food it consumes.
In fact,

Employees in retail and customer service in high demand

Many overqualified employees hired for low-skilled positions

The top five job positions with the highest demand in Puerto Rico between 2020 and 2021were retail workers, cashiers, customer service reps, fast food workers and medical secretaries, according to a survey released last week by the Puerto Rico Labor and Human Resources Department (PRLHRD).

Nearly a third of employers surveyed (30.1%) said they needed to fill job positions as of March 2021, with the survey’s vacancy rate – defined as the number of available jobs over total employment – standing at 10%.

Almost 90 percent of consulted business owners with vacant positions said they were confronting difficulties in hiring employees for these jobs.

Also, almost half of newly hired employees in Puerto Rico during the period were overqualified for their jobs, as employers ramped up hiring with the phasing out of the Covid-19 pandemic lockdowns.

The over-qualification rate – the percentage of newly recruited employees with an education level higher than that required by the job position to be filled – was 42.6%, according to the PRLHRD’s Skills and Occupations in Highest Demand survey, which consulted 4,000 island establishments and covered the period between April 2020 and March 2021.

The survey indicates that the industries with

the highest rate of newly hired overqualified employees during the period included information (85.4%), lodging and food services (74.7%), and transportation and warehousing (60.2%).

It must be noted that 28.9% of the newly hired employees were not required to have any specific education level, although 34.2% of these employees had a high school diploma or its equivalent, while 22.5% had a bachelor’s degree.

Nearly half of the employers surveyed, or 43%, said they recruited at least one employee during the 2020-2021 period. The recruitment rate (percentage of all employees who were newly hired) was 3.9% during the period ending in March of last year – almost twice the 2.2% recruitment rate for the same period ending in March 2020, according to the employer survey.

Employers surveyed said the jobs that were most difficult to fill were employees involving preparation of food, fast-food counter clerks and managers, sales clerks, customer service representatives, janitors and cleaning employees, agricultural workers, dental assistants, and automobile mechanics, among others.

More than half (55.7%) of newly recruited employees between April 2020 and March 2021 were women, which exceeded the proportion of women in the island’s population of 53%.

Jobs in Demand

In fact, the survey indicated that newly hired employees in greatest demand during the period were retail sellers, cashiers, customer service representatives, fast-food workers and medical secretaries. These jobs paid an average of between $8.67 per hour and $10.70 per hour, according to the employer survey. Federal minimum wage is $7.25 per hour, while the hourly minimum wage in Puerto Rico is $8.50. Currently, 30 states and Washington D.C. have minimum

wages above the federal minimum.

Newly recruited workers who were required to have at least a bachelor’s degree and were in greatest demand during the period included graduate nurses – who received an hourly average of $17.16 – and executive secretaries and assistants – who received an average salary of $16.17 per hour.

Few of these employers offered fringe benefits to the newly hired workers, with just 19.7% of those surveyed in 2021 offering health insurance, 13.3% offering productivity bonuses, and only 11.9% offering retirement plans.

The survey’s separation rate –the percentage of all employees who were separated from their jobs, whether by dismissal, layoff, resignation, retirement or death – came out to 2.6% during the period ending in March 2021, which was almost half of the 4.2% rate for the previous period.

Moreover, the partial employment rate, or the percentage of employees who worked less than 28 hours a week, stood at 13.7%, which represents a decrease of 4.6 percentage points when compared to the previous period rate of 18.3 percent.

Regarding required job skills, over 60 percent of newly hired employees between 2020 and 2021 were required to know how to use computers and have a mastery of specific programs, according to the study. The most required tasks or activities employers required of the new workers, expressed as a percentage of employers, included fulfilling scheduled plans (77.7%); talking to clients (71.7%), working in a group or team (67.9%); managing assigned priorities (63%) and mastering basic arithmetic skills (56.5%).

“It will be very interesting to be able to compare this report, which corresponds to the critical pandemic period, with the one that publishes in December 2023 and which will cover the period of economic resurgence that we are living in Puerto Rico, ” PRLHRD secretary Gabriel MaldonadoGonzález said in a press release announcing the survey.

/ Wednesday, December 28, 2022 7
The highest rate of newly hired overqualified employees included information (85.4%), lodging and food services (74.7%), and transportation and warehousing (60.2%). In fact,
>AP Photo/ Marcio Jose Sanchez, File

Consumer confidence bounces back, ending year on high note

Confidence index rose to 108.3 in December, up from 101.4 in November

WASHINGTON — The confidence of American consumers rebounded this month to end the year on a high note despite high inflation, rising interest rates that have made credit cards and mortgages more expensive, and growing anxiety about a possible recession.

The Conference Board reported Wednesday that its consumer confidence index rose to 108.3 in December, up from 101.4 in November. It’s a sharp rebound, pushing the index to its highest level since April. Last month’s figure was the lowest since July.

The business research group’s present situation index – which measures consumers’ assessment of current business and labor market conditions –also rose, to 147.2 this month from 138.3 in November.

The board’s expectations index – a measure of consumers’ six-month outlook for income, business and labor conditions – rose to 82.4 from 76.7. Readings near or below 80 are associated with recession.

Lynn Franco, senior director of economic indicators at the Conference Board, noted that inflation expectations retreated in December to their lowest level since September of last year, mostly due to recent declines in gas prices. The number of people saying they planned to go on vacations rose, but the number of those intending to purchase homes and big-ticket appliances declined.

“This shift in consumers’ preference from bigticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes,” Franco said.

Getting a clear read on recent consumer behavior has been tricky.

The government reported last week that Americans cut back sharply on retail spending in November as the holiday shopping season began. High prices and rising interest rates are forcing families, particularly lower income households, to make harder decisions about what they buy.

Retail sales fell 0.6% from October to November after a sharp 1.3% rise the previous month. However, Americans opened their wallets on Black Friday and over the post-Thanksgiving weekend. Spending on Black Friday jumped 12% compared with a year ago, according to MasterCard Spending Pulse, though that figure is not adjusted for inflation.

And on so-called “Cyber Monday” earlier this week Americans boosted their online spending by 5.8% from a year earlier, Adobe Analytics said.

Americans have been resilient in their spending since inflation first began to spike almost 18 months ago, but the capacity to maintain that pace during a period of high inflation may have begun to ebb. Inflation has retreated from the fourdecade high it reached this summer but remains elevated, enough to erode the spending power of Americans. Prices were 7.1% higher in November than they were a year ago.

A rising number of households are stepping up their use of credit cards – or “buy now, pay

later” plans as prices rise, and that can’t continue indefinitely.

Americans are also dipping into savings, which rose sharply during the pandemic as government stimulus checks and the postponement of spending on travel and entertainment fattened bank accounts.

The savings rate in October slid to 2.3%, the lowest level since 2005.

The willingness to buy a home has faded with mortgage rates that have doubled in the past year. The National Association of Realtors reported Wednesday that sales of previously occupied U.S. homes slowed for the tenth consecutive month in November. Sales plunged 35.4% from November last year.

/ Wednesday, December 28, 2022 8
Matt Ott – The Associated Press
This shift in consumers’ preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes.
Lynn Franco, senior director at the Conference Board
Americans have been resilient in their spending since inflation first began to spike almost 18 months ago, but the capacity to maintain that pace during a period of high inflation may have begun to ebb.
In fact,

The real story of January 6th

For almost two years in the United States the date “January 6th” has become almost as famous as “July 4th”. January 6th has evolved to represent evil, anti-patriotism, and sedition. We recall images of the US Capitol with smoke, broken windows, and chaos. But what is January 6th really all about? What was the real purpose of January 6th, and in particular, January 6th, 2021? Why did the masses of Trump supporters choose to roll into Washington DC on that date? And why did the members of the US Congress happen to be together at the Capitol building at that time? What is the real story of January 6th?

The fact is that on January 6th, 2021, the US Congress was in joint session at the US Capitol to perform their constitutional duty. They were there following a legal and constitutional process that had been adhered to since the late 1800’s. Article II of the U.S. Constitution (and later the 12th and 23rd Amendments, plus the Electoral Count Act (ECA) of 1887) established the Electoral College and the outlines of congressional and other responsibilities that take place between Election Day and the presidential inauguration. Americans understand now more than ever how important this portion of the US election process is.

Congress meets in a joint session to count the electoral votes and the US Constitution states that this counting will be done on January 6th after the presidential election. Congress counting of the electoral votes is the final procedure before the presidential inauguration and is the final confirmation of the results of the election. Although not the ideal situation, at this time in the process the results of a United States presidential election could be legally changed. The ECA of 1887 states that if objections are raised about the electoral votes from certain states not being “regularly given” or a voter is not “lawfully certified,” an objection may be made in writing by at least one senator and one member of the House of Representatives. The joint session is suspended while the two chambers meet separately for a maximum of two hours of debate. Then, a majority vote is taken by the Congress to accept or reject the objection.

In 2005, two Democratic members of Congress objected to President George W. Bush’s victory in Ohio, but both chambers overwhelmingly rejected this objection. Following the 2000 and 2016 elections, several House members planned to object to electoral votes from certain states but found no senators to join them. In 2021, the Trump plan was to follow this process because they believed there were irregularities in the electoral votes of certain states. In 2021 Republicans

objected to results in Arizona, Georgia, Michigan, Nevada, and Pennsylvania. The objections to Arizona and Pennsylvania were supported by senators who would have suspended the joint session and initiated two hours to debate the objections. This, however, never took place. This is

when everything went to hell.

Security at the US Capitol was breached, and the process of the electoral vote confirmation was suspended for the safety of the members. The fact is that those who broke into the capitol destroyed any chances the Republicans and President Trump’s plan had to object enough electoral votes to necessitate the US Congress to vote and to decide the winner. When things finally settled down and Congress returned to confirm the vote, not enough Republicans had the will to continue the fight although 147 Republicans did object to the results in the states of Arizona and Pennsylvania.

The January 6th process is nothing new. It is a legal and constitutional safeguard ensuring that our election process gets it right. Who knows what would have happened with the 2020 election if there hadn’t been the riot and breaching of the capitol to interrupt the January 6th electoral vote confirmation process? We will never know. It makes you wonder what January 6th, 2025, will bring.

/ Wednesday, December 28, 2022 9
Supporters of U.S. President Donald Trump are confronted by U.S. Capitol Police officers outside the Senate Chamber inside the Capitol in Washington. >AP Photo/Manuel Balce Ceneta
…those who broke into the capitol destroyed any chances the Republicans and President Trump’s plan had to object enough electoral votes to necessitate the US Congress to vote and to decide the winner.

The Storms of September

Can We Rely on Electric?

The Atlantic hurricane season— the one that impacts Puerto Rico—runs from June 1 to November 30. The peak, however, occurs from midSeptember to mid-October, which has already started, folks.

First things first—this is not an argument in favor or against electric vehicles. This article poses a few questions regarding electric vehicles. Ultimately, the consumer decides what they buy and what they consider reliable.

emergency. Electric vehicles wouldn’t only be a challenge due to the snow, but also due to their power source. See, gasoline or diesel can be transported in smaller containers, electric generation however, requires a second vehicle— likely one that runs on gas or diesel.

Electric vehicles are certainly more efficient, and more environmentally friendly. However, do we have all the information we need to take an educated position on the electric vehicle conversation?

The hurricanes permanently recorded in our memories all made landfall in September. Hugo on September 19, 1988; Hortensia on September 10, 1996; Georges on September 21, 1998; and Maria on September 20, 2017. There is a clear trend here.

With that in mind, and to continue the conversation, I’ll end with some questions.

Abraham Lincoln said: “If I only had one hour to chop down a tree, I would spend 45 minutes sharpening my axe.”

Applying Honest Abe’s wise logic to hurricane season, we should do everything possible to get ready before a disaster.

Car and Driver puts the cost of an average entry level vehicle at around $20,000 in 2022. Business Insider’s latest publications state that electric vehicles at the entry level come in at around $30,000. A rough calculation could mean that an entry level vehicle comes with a $300-$350 monthly payment, and an electric vehicle has a payment of about $500 a month.

All it takes to get ready is a little creativity, logic and a few bucks. Being prepared makes our communities more resilient.

According to the federal government, the median weekly earnings in the U.S. is $1,070. In Puerto Rico, that number is around $680 in San Juan and can range from $320 a week and $893 a week in other areas.

1) Some expert estimates suggest that lithium supplies may last as little as 70 years. At that point, we may have to turn to the oceans to mine lithium. How sustainable is mining for the materials needed to produce lithium batteries?

2) Electric vehicles use sophisticated home connection kits that require considerable electric power. Is a switch to electric vehicles going to place an unsustainable load on the electric grid?

Eduardo Hilera, PR3 Consulting, LLC.

3) Currently, electric vehicles are eligible for many tax breaks throughout the country. Will this be the case in the long run? What impact can this have on tax collection and the government services funded by those taxes?

4) What potential impact can the reduction in fossil fuels have on the production of jet fuel and other products that are essential to the operation of other vehicles?

The average gas tank has a range broadly from 200-400 miles. Comparatively, an electric vehicle gets about 250 miles per charge.

The most basic emergency management concept is planning. Emergency managers agree that the first 72 hours after a disaster are crucial— it takes that long for help from first responders to reach those in need. In the spirit of planning, below is a checklist of the steps we can all take to be prepared for those first 72 hours. It doesn’t involve sophisticated equipment, just a few things we can do by ourselves.

According to the EIA, the kilowatt per hour rate in Puerto Rico is 29.99 cents. The average electric vehicle takes around one kWh for every 3-4 miles of range. In Puerto Rico this means that a full charge could cost about $22 dollars, compared to $50 for a full tank of gasoline.

Inspect Your Home—Look around your home at doors, windows, potentially hazardous objects, and anything easily repairable. Address whatever you find and can fix immediately. Look for loose doors, exposed windows, and non-tempered glass windows or panels. Fix or secure everything you can.

In fact,

Assuming that a car is driven 12,000 miles a year, the electric vehicle costs around $870 a year to charge, whereas a gasoline vehicle requires about $2500 a year in gasoline. Thus, it would take about four years for the cost of an electric vehicle to break even with a gasoline vehicle.

That analysis however is up to the individual consumer. More broadly, there are several questions that come to mind when policies such as those in California resonate throughout the country and assume that we may be ready to switch to electric by 2035.

Prepare Your Car—If you own a car, keep the tank full. Set a reminder on your phone. In an emergency, a full tank of gas will get you wherever you need to go. In addition, identify a safe spot where you can park your car.

Let’s take storms for example. In September, Puerto Rico was hit by hurricane Fiona. The category 2 storm wreaked havoc, obliterated parts of the power grid, and would have left many electric vehicles without charging capabilities.

The hurricanes permanently recorded in our memories all made landfall in September. Hugo on September 19, 1988; Hortensia on September 10, 1996; Georges on September 21, 1998; and Maria on September 20, 2017. There is a clear trend here.

First Aid Kit—Most of us have first aid products but may not keep them all in the same place. Look through your home and store them all together. The Red Cross and others provide recommendations of specific items to have, such as bandages, topical antibiotics and ice packs.

Emergency Phone Numbers— Modern times have made us drift away from it, but use pen and paper and write down your most important contacts. If your phone dies, this could come in very handy. This list will also serve as a reminder of the folks you should keep in touch with during the emergency.

Water—Keep enough drinking water to keep your family hydrated for 72 hours. In addition, keep containers full of tap water for basic household needs.

Food—Cook what you can and use perishables first. Make sure to keep non-perishable food as well.

Electronics Charging Routine—Make a list of all your electronics and keep them charged. Keep back-up and disposable batteries handy as well. However, the single most important electronic device is the flashlight. Keep it handy.

Tool Kit—Just like your first aid kit, make sure your tools are organized and accessible. An all-in-one tool kit, like many retailers carry, is a good idea to keep handy.

Medication—If you or your family take medications, make sure you have a full week’s supply.

On the mainland, as the Christmas holiday started, a once in a generation winter storm slammed the U.S. from coast to coast, hitting the power grid, causing death and creating a national

Cash at Hand—Electronic payment platforms, ATMS and banks can go out of service. Keep enough money on hand to pay for basics following the disaster.

Stay Tuned—Identify and follow your preferred news sources. Make sure they’re reliable and frequently updated. In addition, pick up a basic battery-powered radio.

Stay Calm—You have done the important work of getting ready. Now, the most important part is to remain calm, during and after the storm.

/ Wednesday, December 28, 2022 10
/ Wednesday, September 8, 2021 12 XXXXX XXXXXX
Damage from Hurricane Maria in Sept. 2017 >Carlos Rivera Giusti, Archive
What potential impact can the reduction in fossil fuels have on the production of jet fuel and other products that are essential to the operation of other vehicles?
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4,000 miles away, ‘el sabor criollo’ lives on

Borikén is the only Puerto Rican restaurant in Portland

In a state where the sun is hidden behind thick, gray clouds for nine months a year, Borikén Restaurant brings much needed Caribbean warmth to its guests.

Samuel Vázquez and Awilda MedinaVázquez own and run the Borikén Restaurant in Portland, Oregon. Vazquez, born in New York to parents from Mayagüez and Guayama, moved back to the island with his parents, like many other Puerto Rican families, when he was still a child. Vázquez later returned to the states after graduating from the university and for the past 12 years he’s lived in Portland with his wife Awilda, who is from Utuado.

Before the restaurant, Vázquez had owned a Puerto Rican grocery store with a cafeteria in Florida, but after leaving that behind he wasn’t considering doing anything similar. That is until he met Awilda.

When he first moved to Portland, the idea of opening a restaurant didn’t interest him much, but Awilda continued pushing the concept. “She started taking me to see different locations, and when I saw this location, which was a little rough at the time, I walked in and the vision popped into my mind,” recounted Vázquez.

That’s when he finally agreed. It took just a few

months to get everything working, and they’ve been in business ever since for the last eight years.

The area has mostly Mexican restaurants, with a variety of Chinese, Korean, Vietnamese, and a few Colombian places as well. But Borikén is the only Puerto Rican restaurant in the city, and maybe the state. “A lot of people come in here and they are just looking for something different,” said Vázquez of guests.

Portland doesn’t have much of a Puerto Rican community. Most Spanish speakers come from Mexico and Central America, not the Caribbean region. However, Vázquez said that it wasn’t difficult to get people onboard with Puerto Rican cuisine.

“I might have advertised for the first month we opened. And then I haven’t really advertised since then. It’s pretty much word of mouth, maybe Facebook, Instagram, Twitter. I put things there every once in a while. But as time goes on, it’s grown. Every year it grows a percentage. And sometimes it looks like it’s super bad, but at the end of month, it always averages out. Every year is always a little bit better,” said Vázquez of doing business.

Their most popular dish is “mofongo,” which you can get with churrasco, shrimp, pernil, crab, chicken, octopus, or veggies. Guests’ second favorite is the “bistec encebollado.” The restaurant serves traditional appetizers and “frituras” as well, including “bacalaitos,” “alcapurrias,” “sorullos de maíz,” and “empanadillas.”

For the longest time, Vázquez’s father in law would ship typical ingredients like “sazón” and “adobo” from the island to Oregon, but

caused by the COVID pandemic, made it difficult to continue importing ingredients. “We haven’t been able to get things from Puerto Rico for a couple of years, but we always find a way to find it here or there. We keep it as typical and traditional as we can,” promised Vázquez, who planned to spend the Christmas holiday back on the island with family.

/ Wednesday, December 28, 2022 12
shortages
A lot of people come in here and they are just looking for something different, Samuel Vázquez, owner of Borikén Restaurant
The restaurant serves traditional appetizers and “frituras” as well, including “bacalaitos,” “alcapurrias,” “sorrullos de maíz,” and “empanadillas.”
In fact,
Samuel Vázquez and Awilda Medina-Vázquez, owners of Borikén Restaurant in Portland, Oregon.

In Mexico, posadas bring early Christmas spirit, community

Traditionally, the posada is a re-enactment of part of the Christmas story

MEXICO CITY (AP) — For Miguel Zadquiel, the secret to staying in step as he dances at the front of the annual Christmastime procession through his neighborhood is in the bass drum.

“For every sound it makes, I move one foot, then another one, then I jump around, then I move my shoulders,” he said.

The 14-year-old was one of the dozens of dancers and musicians at the front of this last week’s joyful parade of people winding through the streets of the Mexico City borough of Xochimilco. This festive procession and its related events are known as a posada and happen across the country. The yearly, Catholic tradition carries on for nine nights, starting Dec. 16 and ending on the 24th.

The style of each posada varies from town to town, but traditionally it is a re-enactment of part of the Christmas story. Night after night, two volunteers dress as Mary and Joseph and walk through their community, knocking on a different door each day of the Posada season. Their journey symbolizes the biblical couples’ walk from Nazareth to Bethlehem and the eventual refuge they find in a stable where Jesus is born.

Some neighbors join in the procession carrying candles. Others wait for it to arrive at the home where the pair playing the holy couple is finally received and the celebration continues. There’s singing, sharing of traditional food and the breaking open of a piñata when the colorful papier-mâché container gives way, spilling candy into the hands of the children waiting in anticipation.

Posada season in Xochimilco is unique in that the neighborhood honors the Niñopa – the most venerated image of baby Jesus in the borough and considered its patron – and the story of Mary and Joseph simultaneously.

The origin of the Niñopa is unclear, but the lifesize wooden figure of a baby in white is believed to be about 450 years old and found after the Spanish conquest. Catholic families in Xochimilco typically keep images of him in their homes.

“He’s very miraculous,” said Fernanda Mimila, a Xochimilco resident watching the procession.

“We’ve read many stories about him and every time my family and I are near him, we can feel his vibes and we feel like crying.”

Devotees were once allowed to touch and carry the Niñopa, but it’s now considered too old for frequent handling and requires more care to maintain its condition, said Abraham Cruz. The Xochimilco resident and his relatives had the honor of hosting the Niñopa in their home for this year’s 6th posada and held a celebration for it, a common occurrence during Posadas season. Families request to host the Niñopa years in advance.

Residents participate in the procession of “Niñopan” during a Christmas “posada,” which means lodging or shelter.

>AP Photo/Eduardo Verdugo

It ends about a dozen hours later when the figure is returned. Throughout the day, a priest celebrates a Mass, a meal is served and devotees can approach the homemade altar where the Niñopa is kept until nightfall.

Everyone can join the night celebration when volunteers hand out sparklers, balloons and confetti. The neighborhood comes to life with couples holding hands, young men pushing their grandmothers in wheelchairs and parents hugging their children to keep them warm.

This week hundreds of neighbors wearing shiny hats moved alongside the musicians and the dancers, like 14-year-old Miguel Zadquiel, who were leading the procession and propelling the festive spirit. The group of dancers at the head -known as a “comparsa” – are devoted to a specific image of the infant Jesus. Each member wears a long velvet robe, a big drum-like hat and a mask depicting an old man -- a costume meant to mock the Spanish conquerors.

The Xochimilco posadas last several hours longer than most, and start at 8 a.m. when the host

picks up the Niñopa from its stewards.

“Today’s posada was assigned 10 years ago,” Cruz said. “The family that organized the second posada of this season had to wait for 28 years!”

The Xochimilco posadas last several hours longer than most, and start at 8 a.m. when the host family picks up the Niñopa from its stewards.

The pair – a girl and boy for the 6th posada of the season -- playing Mary and Joseph follows the dancers. At the end, the Niñopa, traveling by van, slowly makes its way through the crowds.

Magda Reyes, dressed in pink, walked next to her 7- and 11-year-old daughters. She has attended these posadas since she was a kid.

“We are very devoted to the Niñopa,” she said. “My mom used to bring me here to celebrate him, so now I’m bringing my girls.”

On the final night of Posada season, the procession will reach its destination where the crowd will sing a lullaby for the infant Jesus, once again welcoming the Christ child’s arrival on Christmas Day.

/ Wednesday, December 28, 2022 13
He’s very miraculous [the Niñopa]. We’ve read many stories about him and every time my family and I are near him, we can feel his vibes and we feel like crying. Fernanda Mimila, a Xochimilco resident.
family
In fact,

Garage Isla Verde: a family business committed to excellence

Founder started out as an auto mechanic servicing VWs and MBs

Juan A. Hernández, The Weekly Journal

Nobody in 1962 could have imagined that Carlos Manuel Quiñones Aulí’s modest auto mechanics workshop operating from a small lot adjacent to his parents’ home in Carolina, would become Puerto Rico’s premiere luxury car dealership. Sixty years later, and thousands of cars sold and fixed later, his son Carlos Manuel Quiñones González is at the helm of the family business as Puerto Rico’s exclusive representative for iconic German automaker Mercedes Benz.

Quiñones Aulí studied auto

Quiñones

mechanics at the Miguel Such Vocational School in Río Piedras and, after graduation in the early 1950s, he went to work for the Puerto Rico’s Volkswagen dealership for a short period of time, before landing a job at the Mercedes Benz dealer in Puerta de Tierra.

“Back then there were but a few Mercedes on the island, and that business eventually closed. He then went to Martorani Motors, which were Puerto Rico’s Fiat distributors. He went there as a mechanic for Mercedes Benz’ parts and service operation, which had been passed to Martorani.

Aulí studied auto mechanics at the Miguel Such Vocational School in Río Piedras and, in

early 1950s went

work for the Puerto Rico’s Volkswagen dealership.

The Fiat dealership also folded some time later, so Quiñones Aulí went back to his parents’ home and started servicing and fixing mainly VWs and the six or seven MBs that were in circulation on the island back then. Quiñones Aulí’s father had a small company of dump trucks on a lot adjacent to their home and that’s where he started his auto mechanics workshop.

“It was about that time that he meets my mother, who used to

work for “El Imparcial” newspaper, and help him out after-hours with billing and collections after they got married,” said Quiñones González.

The eldest of the Quiñones children recalled that around that time –the late 1950s– his father had a German customer that sporadically went to the workshop seeking service for his VW.

“It just so happens, the man turned out to be the vice-president for Mercedes Benz North

Carlos Manuel Quiñones González, president of Garage Isla Verde

/ Wednesday, December 28, 2022 14
Garage Isla Verde’s showroom.
…the man turned out to be the vice-president for Mercedes Benz North America and he had been coming to Puerto Rico looking for someone to become Mercedes Benz representative in Puerto Rico.
the
to
In fact,

America and he had been coming to Puerto Rico looking for someone to become Mercedes Benz representative in Puerto Rico. Now, Garage Isla Verde was founded in 1962, but it wasn’t until two or three years later that this gentleman identifies himself as vice-president of Mercedes Benz and what his business was. Needless to say, my father’s first answer was no… ‘There is no money here, crabs is what we have here,’ my dad told the man.”

But the man –Hans Jordan was his name–insisted. Recalling from his father’s numerous accounts, Quiñones González said Mr. Jordan

admitted to Quiñones Aulí and his wife that he had been considering other candidates to represent the German automaker, but they only had to sign a document he had produced to assume exclusive representation in Puerto Rico. And they did.

By 1968 the Garage Isla Verde was MB’s representative for parts and service. “From then on, cars had a warranty service, repair parts… and if someone wanted to buy a new car, my dad called the dealer in Miami, and the car was shipped in. Some 10 cars were sold that way,” Quiñones González recalled.

Again, the German auto executive insisted Quiñones Aulí move to develop a full dealership, and by 1972 Garage Isla Verde had its own showroom and sold its first Mercedes Benz.

Sixty years after its foundation GIV, the only authorized Mercedes Benz dealer in Puerto Rico, has successfully develop a business that effectively contributes to a $600 million industry and provides 180 jobs. GIV’s operates a parts and service center in Mayagüez and is planning to inaugurate another in Ponce by 2023.

“Mercedes Benz official dealership has been an

exciting challenge that we continue to renovate year after year. Since its foundation GIV has focused on meeting its customers’ needs, and there lays our success,” said Quiñones González.

GIV’s president is also confident on the brand’s legacy of innovation and improvement now that technology has significantly changed the automotive industry. Aware of the role sustainability plays in just about every industry, GIV’s operations are eco-friendly, from power generation, via solar panels, to an orchard where eggplants, tomatoes, “recao,” lettuce, and “yerbabuena,” among others are grown.

This commitment to sustainability is representative of Mercedes Benz’s commitment in the development of electric vehicles (EVs) to expand its auto line-up.

“For us, being eco-friendly or ‘green’ is not just a passing fad… it is the right thing to do and it is responsibility we all assume very seriously as a corporate citizen, The world is changing, and we are changing with it,” said Quiñones González.

In fact,

The German auto executive insisted Quiñones Aulí move to develop a full dealership, and by 1972 Garage Isla Verde had its own showroom and sold its first Mercedes Benz.

/ Wednesday, December 28, 2022 15
Garage Isla Verde’s 1984 newsletter for customers and employees. Carlos Manuel Quiñones Aulí, founder of Garage Isla Verde. Garage Isla Verde showcases one of its Mercedes Benz SL convertible model.
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