Today, Sunday, the Bureau of Energy approved a decision to cut 2.75 cents per kilowatt-hour (kWH) by 8.2% in relation to the applicable, electricity service cost for August and September, which typically has the highest electricity consumption in Puerto Rico.
For the average residential customer, who consumes 800 kWh, the savings in one month would be about $22.03at a cost per kilowatt-hour of 22.7 cents compared to the current cost of 25.4 cents, the agency explained in a press release.
The accelerated settlement process occurred after LUMA Energy last Thursday introduced the new factor update, the second this month, after Electric Power Authority (PREPA) handed over to the Bureau the information that changed the numbers provided in the previous week.
Through contractual judgment, LUMA is responsible for calculating, based on PREPA numbers, the factors affecting the invoicesuch as fuel and energy purchase modifications and subsidies.
The office indicated that what was approved It is the result of a “quick settlement process that is activated, at the end of the monthly billing cycle, when it is determined that actual costs for power purchases or fuel purchases deviated from electric power authority and LUMA bills by more than $20 million.”
The role of the Energy Office is to ensure the public interest. In exercising this function, The Bureau ensures that only the actual costs of production, transmission and distribution of energy shall be borne by the consumer, not a penny less, nor a penny more.”referred to in written statements to the Chief of Staff, Edison Aviles Deliz.
What is the interpretation of the discount?
Expedited Reconciliation took effect when, at the end of June, LUMA had under-collected fuel purchases of more than $48 million.
However, in the adjustment made by the Bureau, this shortfall was made up by three items: Adjustment of real expenses and income in June; Update estimated expenditures for fuel purchase and calendar (“a program”) of interruptions in August and September; and deferment of funds for penalties and repayment.
First, PREPA received notification from the Federal Emergency Management Agency (FEMA) on March 11 – the office was informed on July 8 – that Will increase from 75% to 90% reimbursement for purchasing more expensive fuel to operate the stations climax The result of the emergency caused by the earthquakes of 2020.
Therefore, the bureau ordered that the net impact of the FEMA report, which is approximately $34 million, be credited to clients, as that amount has already been billed.
Along the same lines, With the cost of oil falling in recent weeks, the authority’s projected spending on fuel purchases for the next two months has fallen by $69 million compared to the settlement approved at the end of June.. The office ordered that this amount be restricted in favor of clients.
Finally, the authority informed the bureau of this Naturgy will pay a fine for the lack of natural gas supplies to Costa Sur 5 and 6 units during the period from April to June. Subsequently, the bureau also ordered a deposit of more than $14 million in favor of clients for this concept.