PREPA / AEE Draft Financial plan

I think that'll still be cheaper than the $80 a week I was spending on gas for my generator when there was no power at all.

I didn't read the plan yet but if they are also are really going to improve the grid it might be worth it.  Somehow I have a feeling that I'm only dreaming and that I'll wake up to the same crappy grid and a 50% higher bill.

That's the plan Gary.  The rate hike is to make payments on PREPA debt.  Don't expect any improvement in services.

From page 28 of the plan to which Rey linked:

"Funding debt service at
any level will require a
rate increase over current
levels or other dedicated
revenue stream"

I just read that, Warner.

Here's the graph from page 28
It shows that they want to charge up to 36 cts for a kWh in 2021

Here's the graph from page 30 where it is shown how the rate is built.  4 to 5 cts per kWh to pay off the debt (of which it is unclear why it's there and where the money went).

Gary wrote:

I didn't read the plan yet but if they are also are really going to improve the grid it might be worth it.  Somehow I have a feeling that I'm only dreaming and that I'll wake up to the same crappy grid and a 50% higher bill.

More than likely that will be the case, 50% more and crappy. It is going to take a while to bring in and build new Infractructure and 3rd parties, the old diesel  and charcoal plants will still be around and running the bill up until they can be shutdown.

Unless they busy the lines they will also have issues, so it will be crappy for a long time.

Gary wrote:

Here's the graph from page 30 where it is shown how the rate is built.  4 to 5 cts per kWh to pay off the debt (of which it is unclear why it's there and where the money went).

http://i67.tinypic.com/ilav4j.png

I think those rates are optimistic, I bet they will be around 38 cents.

Now, obviously there is a certified fiscal plan for fiscal years 2017 - 2026 which includes a 21 cent per kWh target rate by 2023.

I hope the 'junta' will keep that one in place...

One way or another, now is the time to seriously look into alternatives. One of my neighbors is about to go off-grid with solar panels and a windmill. He may need to run a generator a couple of days per month but his system looks pretty good.

I'm going solar/batteries/generator set up for my house. The way the electric company is going is ridiculous. More expensive and less reliable. Woopydoo!!!

No reason why Puerto Rico can't be more alternative-conscious, especially with solar.

PR can and should be more solar power usage. The issue is politics, the government have ties with oil companies, these companies have deep pockets to bride politicians. Why you think that we have such an obsolete system? The only reason solar power had a footprint in the island is because of private investment. The government was, until a few years ago, very reluctant to allow people to interconnect solar power. Up to certain point, the island people will start to be more self sufficient regarding the electric power. The way solar power is evolving, it will become more affordable, solar power companies will capitalize on the government failures, heck, they are doing it now.
Currently, we have one of the highest, if not the highest electric rate in the nation. Look at places like Australia where power is super expensive and unreliable, people there relies more on solar power to offset the electric cost.

As I understand the companies providing the 2% renewable power in the island are a gold mine. They produce it at around 6 cents a KWH and sells it to PREPA at 18 cents a KWH.

The whole thing is rigged by the politicians.

The new companies are coming in to put micro nets but they are local so there are no other choices, so they will be monopolies able to charge what they want. Unless you live in a trailer you can not choose electric supplier. There will be a single distributor (AEE) to connects all the production and they were talking about charging 25 dollars a month to each client in order to get power that comes thru the poles.

So don't expect lower prices in the next 20 years, it is all rigged.

Community nets still require the poles to bring the electricity to your homes and somebody needs to trim trees, and make repairs to those lines, that is where AEE or its new name comes in to make their money. Companies that produce the electricity are not going to deal with getting it to your home.

I seen some drafts where the expected contracts allow for 1.5-2% rate hikes per year. The agency in charged of regulating rates is being eliminated and its function is being merged with another agency so they are less powerful and unlikely to pay attention.

A little off topic, but a FEMA employee just told us that Con Ed has bought 1/3 of PREPA.  Thoughts, anyone?

annabfalter wrote:

A little off topic, but a FEMA employee just told us that Con Ed has bought 1/3 of PREPA.  Thoughts, anyone?

Nothing in the news about it.

Interesting, we need more information. 🤔

I haven't read anything in FB or in the news.

Maybe a deal is in the works and the person just assumed it was a done deal.