The federal Internal Revenue Service (IRS) asked the Electric Power Authority (PREPA) to return some federal subsidies that were awarded to the public corporation.
According to Bloomberg, the subsidies were for bonds sold ten years ago. Furthermore, it was indicated that these were part of a government stimulus program for the recession.
The collection of the money is disclosed in a letter that the IRS sent to PREPA. In the letter he requests the return of the Build America Bond subsidies that have been made as of July 1, 2017, after the filing of Title III of the public corporation.
Likewise, it was indicated that PREPA sold $ 676 million in bonds, and the federal government covered 35% of that amount.
PREPA Management by Luma Energy
On the other hand, in late June PREPA’s Public Private Partnership with the company Luma Energy was announced, in order to manage and operate the transmission and distribution system of the public corporation.
Following the announcement, the Fiscal Control Board (JCF) indicated the contract includes an estimated 12-month transition period, before the 15-year contract takes effect in 2021. The transition period can be extended if PREPA has not completed the process of leaving Title III, by virtue of the PROMESA Law.
Under the agreement, LUMA Energy will receive a maintenance fee and a structured incentive fee to provide tangible improvements to PREPA customers. LUMA Energy will work with FEMA and the United States Department of Housing and Urban Development (HUD) to efficiently mobilize federal aid allocated to power generation systems.
In Puerto Rico.
It may interest you:
It might interest you: