220808 ORD RE PREPA PPOA REJECTION.DOCX VERSION AUGUST 8, 2022 1

UNITED STATES DISTRICT COURT

DISTRICT OF PUERTO RICO

In re:

THE FINANCIAL OVERSIGHT AND MANAGEMENT 

BOARD FOR PUERTO RICO,

as representative of 

THE COMMONWEALTH OF PUERTO RICO, et al.,

Debtors. 1

PROMESA

Title III

No. 17 BK 3283-LTS

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND MANAGEMENT 

BOARD FOR PUERTO RICO,

as representative of 

PUERTO RICO ELECTRIC POWER AUTHORITY,

Debtor.

PROMESA

Title III

No. 17 BK 4780-LTS

ORDER GRANTING SECOND OMNIBUS MOTION OF PUERTO RICO 

ELECTRIC POWER AUTHORITY FOR ORDER (A) APPROVING 

PREPA’S REJECTION OF CERTAIN POWER PURCHASE AND 

OPERATING AGREEMENTS, AND (B) GRANTING RELATED RELIEF

1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case 

number and the last four (4) digits of each Debtor’s federal tax identification number, as 

applicable, are the (i) Commonwealth of Puerto Rico (“Commonwealth”) (Bankruptcy 

Case No. 17-BK-3283- LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico 

Sales Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284-LTS) 

(Last Four Digits of Federal Tax ID: 8474); (iii) Puerto Rico Highways and 

Transportation Authority (“HTA”) (Bankruptcy Case No. 17-BK-3567-LTS) (Last Four 

Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government 

of the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17-BK-3566-LTS) 

(Last Four Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric Power Authority 

(“PREPA”) (Bankruptcy Case No. 17- BK-4780-LTS) (Last Four Digits of Federal Tax 

ID: 3747); and (vi) Puerto Rico Public Buildings Authority (“PBA”) (Bankruptcy Case 

No. 19-BK-5523-LTS) (Last Four Digits of Federal Tax ID: 3801) (Title III case 

numbers are listed as Bankruptcy Case numbers due to software limitations).

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Upon the Second Omnibus Motion of PREPA for Order (a) Approving PREPA’s 

Rejection of Certain Power Purchase and Operating Agreements, and (b) Granting Related 

Relief (Docket Entry No. 21521 in Case No. 17-3283 and Docket Entry No. 2893 in Case No. 

17-4780) (the “Motion”)2

; and the Court having found it has subject matter jurisdiction over this 

matter pursuant to section 306(a) of PROMESA; and it appearing that venue in this district is 

proper pursuant to section 307(a) of PROMESA; and the Court having found the rejection of 

the Rejected PPOAs represents a sound exercise of PREPA’s business judgment and that the 

relief requested in the Motion is in the best interests of PREPA, its creditors, its customers, and 

other parties in interest; and the Court having found that PREPA provided adequate and 

appropriate notice of the Motion under the circumstances and that no other or further notice is 

required; and the Court having reviewed the Motion and the Zapata Declaration; and the Court 

having determined that the legal and factual bases set forth in the Motion establish just cause 

for the relief granted herein; and the Court having determined no objections have been filed 

opposing the relief requested in the Motion; and upon the record herein, after due deliberation 

thereon, the Court having found that good and sufficient cause exists for the granting of the 

relief as set forth herein,

THEREFORE, IT IS HEREBY ORDERED THAT:

1. The Motion is GRANTED as set forth herein.

2. Pursuant to section 365 of the Bankruptcy Code, made applicable in this Title 

III Case by PROMESA section 301(a), PREPA’s rejection of the Rejected PPOAs listed on 

Exhibit A attached to the Motion is approved and such Rejected PPOAs shall be automatically 

2 Capitalized terms not otherwise defined herein shall have the meanings given to them in 

the Motion.

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rejected upon entry of this Order.

3. All claims based on the rejection of the Rejected PPOAs, if any, must be filed 

on or before 4:00 p.m. (Atlantic Standard Time) on the first business day that is thirty-five (35) 

calendar days after the entry of the Order by the Court approving such rejection.

4. Nothing herein invokes any consent under PROMESA section 305.

5. Notwithstanding any applicability of any Bankruptcy Rule, the terms and 

conditions of this Order shall be immediately effective and enforceable upon its entry.

6. PREPA and the Oversight Board, as PREPA’s Title III representative, are 

authorized to take all actions, and to execute all documents, necessary or appropriate, to 

effectuate the relief granted in this Order in accordance with the Motion.

7. The Court shall retain exclusive jurisdiction to hear and determine any and all 

disputes related to or arising from the implementation, interpretation and enforcement of this 

Order.

8. This Order resolves Docket Entry No. 21521 in Case No. 17-3283 and Docket 

Entry No. 2893 in Case No. 17-4780.

Dated: August 8, 2022

 /s/ Laura Taylor Swain

LAURA TAYLOR SWAIN

United States District Judge

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