Puerto Rico in Distress

ABI Analysis

Luma Energy won approval from Puerto Rico’s financial oversight board for a contract extension to run the island’s government-owned power grid amid criticism that the historically fragile electric system remains unreliable, Bloomberg News reported.

Puerto Rico’s bankrupt public electric utility, which powers most of the island, faces a Dec. 1 deadline to file a debt-cutting proposal to the court, a time limit that could prove a turning point in its five-year workout, Bloomberg News reported.

A Canadian-American consortium swept into Puerto Rico last year with promises to transform the island’s antiquated power grid. Many residents welcomed the change, tired of subpar service from a state-run utility that left them in darkness for months after a strong hurricane five years ago.

The U.S. Supreme Court on Monday declined to take up Puerto Rico teachers unions’ appeal to challenge the island’s historic debt and pension restructuring plan, Bloomberg Law reported. The justices’ decision to bypass keeps in place the restructuring plan’s provisions that upend local laws and reduce teacher benefits.