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Puerto Rico Electric Power Authority announces agreement with lenders

From the July 8, 2014 issue of Public Power Daily

Originally published July 8, 2014

By Robert Varela
Editorial Director

The Puerto Rico Electric Power Authority (PREPA) yesterday announced that its lenders who provide revolving lines of credit used to pay for purchased power, fuel and other expenses have agreed to not exercise remedies as a result of credit downgrades and other events. Under the agreements, PREPA said it may delay certain payments that are due now until July 31, 2014. 

Over the next few weeks, PREPA said it will continue discussions with the lenders and will use the time to evaluate various alternatives to improve its financial situation. The agreements place no limits on its ongoing operations, the utility said. Payments due to employees and suppliers will continue to be paid as usual.

"While PREPA faces certain financial challenges today, we are working hard to improve operations, strengthen service and modernize our infrastructure, so we can deliver cleaner and more reliable energy to our customers," said PREPA Executive Director Juan Alicea Flores. "We thank our lenders for their ongoing cooperation and support as we work to transform PREPA to best serve our customers." 



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Vice President, Integrated Media and Communications
Meena Dayak

Editorial Director
Robert Varela

Editor, Public Power Daily
Jeannine Anderson

Communications Assistant
Fallon W. Forbush

Manager, Integrated Media 
David L. Blaylock

Integrated Media Editor 
Laura D’Alessandro