Why Puerto Rico can’t stop talking about electricity

Puerto Rico’s electricity system is under pressure from rising costs, unreliable service and warnings of possible blackouts. Residents are paying 37% more than five years ago, despite the handover of power distribution to private operator LUMA being intended to improve reliability.

A kilowatt-hour has risen from 19.63 cents in 2020 to an average of 26.9 cents, while a recent rate adjustment took a typical monthly bill cited by the regulator from about $228 to at least $270. Fuel costs, including those linked to the war in Iran, and generating units going offline have contributed to increases; only $2.7 billion of $14 billion in US grid funding allocated since 2017 had been disbursed by June. With average weekly wages far below the mainland US level, small-business representatives warn that up to 12,000 firms could close and 70,000 jobs could be lost.