As per Noticel, the legislature of Puerto Rico has before it a draft of the bill that would ratify the Agreement in Support of Restructuring (RSA) of the Electric Power Authority (PREPA), as it was the center of discussion yesterday between Governor Wanda Vázquez Garced and the delegation of the New Progressive Party (PNP) in both houses.
The draft, held by NotiCel, was written largely by the legal consultants of PREPA, the Financial Advisory Authority and Fiscal Agency (AAFAF) and the Fiscal Control Board (JCF). However, this media knew that the legal representatives of PREPA’s Ad-Hoc Group of Bonists, Syncora, Assured Guaranty Corp and National Public Finance Guarantee, who in turn are the only parties that have participated united in support of RSA.
The rate increases recorded in the bill reflect the same increases recorded in the RSA, particularly the transaction fee of 1 cent per kilowatt hour that comes into effect as soon as the court approves the RSA and the transition charge that begins at 2.7 cents per kilowatt hour the first 3 years. This transition charge takes effect during the effective date of the Adjustment Plan and would serve to guarantee the issuance of adjustment bonds.
Two other charges that are not specified are the pension charge and the general public amounts not collected. The pension charge, addressed to the retired employees of PREPA, is to be determined during the Adjustment Plan, while the general public amounts not collected are calculated annually based on all the kilowatt hours billed but not collected among all customers of PREPA.