EXHIBIT 14 

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Exhibit AHG Ex 14 Lumas Fourth Quater Federal Funding Report for Fiscal Year 202 Page 1 of 13
GOVERNMENT OF PUERTO RICO

PUERTO RICO PUBLIC SERVICE REGULATORY BOARD

PUERTO RICO ENERGY BUREAU

CASE NO. NEPR-MI-2021-0002

SUBJECT: Submission of Fourth Quarter Federal

Funding Report for Fiscal Year 2022

MOTION SUBMITTING FOURTH QUARTER FEDERAL FUNDING

REPORT FOR FISCAL YEAR 2022

TO THE PUERTO RICO ENERGY BUREAU:

COME NOW LUMA Energy, LLC 1, and LUMA Energy ServCo,

LLC 2

respectfully submit the following:

1. d a

th

with [Federal Emergency

projects to the Energy Bureau at least thirty (30) calendar days prior to its submittal to [the Puerto

Rico Central Office for Recovery, R

th Order at p. 19. In connection with FEMA 428 funds, the Energy

IN RE:

IN RE: REVIEW OF THE PUERTO RICO

ELECTRIC POWER AUTHORITY'S 10

YEAR INFRASTRUCTURE PLANDECEMBER 2020

1 Register No. 439372. 2 Register No. 439373.





  

 

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Exhibit AHG Ex 14 Lumas Fourth Quater Federal Funding Report for Fiscal Year 202 Page 2 of 13
next five (5) years, the progress of all ongoing efforts related to the final approval of the submitted

2

Id.

2. On May 31, 2021, this honorable Energy Bureau issued and published a Resolution

and Order approving -MI-2021- st Initial

3. In the May 31st Initial Budgets Resolution and Order, the Energy Bureau listed

among others, requirements for reporting on the Initial Budgets spending amounts and reporting

on federal funding activity. Then, on July 16, 2021, this Energy Bureau issued a Resolution and

Order in Case NEPR-MI-2021- th

it modified the federal funding reporting requirements under the May 31st Initial Budgets

Resolution and Order to provide the following:

LUMA shall submit to the Energy Bureau, on a quarterly basis, summary reports

outlining federal funding activity. These summary reports shall include aggregated

information showing the cumulative amount of federal funding applied for by

LUMA and/or PREPA, broken out by the source of such funding, the incremental

amount of federal funding applied for in the reporting quarter, and both the

cumulative and monthly amount of federal funding received.

See July 16th Resolution and Order at p. 6.

4. In alignment with the quarterly reporting requirements in Case NEPR-MI-2021-

004, LUMA has submitted to date, three quarterly reports for the Fiscal Year 2022 on

rts to this

Energy Bureau in Case No. NEPR-MI-2021-004, , and

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Exhibit AHG Ex 14 Lumas Fourth Quater Federal Funding Report for Fiscal Year 202 Page 3 of 13
Case No. NEPR-MI-2020-0019,

3

System Remediation Plan.

5. On August 12, 2022, LUMA

Year-End Reporting under the T&D OMA and to File the Q4 Report on October 28, 2022

3 Th

Request for Alignment and directed that LUMA shall file the Q4 Report by September 7, 2022

st

6. LUMA hereby submits the Quarterly Federal Funding Report with data on year-todate federal funding activities for the fourth quarter of FY2022. The Report includes the amounts

of federal funds that LUMA has applied for, the amounts applied for during the quarter, and the

amounts of federal funds that have been approved to date, as of June 30, 2022.

WHEREFORE, LUMA respectfully requests that the Energy Bureau take notice of the

aforementioned for all purposes; and deem that LUMA complied with the August 31st Order that

requires that LUMA submit data on federal funding activities.

RESPECTFULLY SUBMITTED.

In San Juan, Puerto Rico, this 7th day of September 2022.

3

The Request for Alignment was submitted to the Energy Bureau via electronic mail as the electronic filing system

electronic portal on August 15, 2022.

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I hereby certify that we filed this motion using the electronic filing system of this Energy

Bureau. I will send an electronic copy of this motion to the attorneys for PREPA, Joannely

Marrero-Cruz, jmarrero@diazvaz.law, and Katiuska Bolaños-Lugo, kbolanos@diazvaz.law.

4

DLA Piper (Puerto Rico) LLC

500 Calle de la Tanca, Suite 401

San Juan, PR 00901-1969

Tel. 787-945-9107

Fax 939-697-6147

/s/ Margarita Mercado Echegaray

Margarita Mercado Echegaray

RUA NÚM. 16,266

margarita.mercado@us.dlapiper.com

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Exhibit 1

Quarterly Federal Funding Report

5

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1.0

1.1

Continued alignment of strategies for

distribution, transmission, substation, and streetlights projects. These strategies are meant to

establish a common understanding between the parties and streamline the determination of

406HM eligible work.

LUMA continued to develop plans in coordination with COR3 for various projects eligible for

404HM.

LUMA continues to develop requirements in coordination with COR3 for Request for

Reimbursement (RFR).

Continue to complete Endangered and Threatened Species Biological Studies and Wetland

Hydrological Studies to support construction planning, permitting, and the development of

appropriate environmental mitigations.

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Continued to advanced project work towards finalizing detailed SOWs for submission to COR3

and FEMA. This effort involved working with architecture and engineering (A&E) firms and

resolving numerous issues in the absence of technical drawings and reliable data from PREPA

and resulted in field assessment being undertaken to support the development of said detailed

SOWs. This effort also included 406HM and EHP development work.

In April and May 2022, LUMA received Project Obligations from FEMA for five streetlight projects

(municipalities of Aguada, Maunabo, Guanica, Lajas, Luquillo) that were submitted to FEMA and

COR3 (including 406HM & EHP requirements) in March 2022 and included subsequent ongoing

discussions with between LUMA and COR3/FEMA to work through key project details for 406

hazard mitigation eligibility and EHP requirements prior to Project Obligation.

In May and June 2022, LUMA received Project Obligations from FEMA for five Distribution Pole

Replacement projects (Ponce Group 1, Ponce Group 2, Caguas Group 4, Caguas Group 8,

Arecibo Group 2) that were submitted to FEMA and COR3 (including 406HM & EHP

requirements) in January and February 2022and included subsequent ongoing discussions with

COR3/FEMA to work through key project details for 406 hazard mitigation eligibility and EHP

requirements prior to Project Obligation.

In October 2021, LUMA submitted the detailed SOW for the Cataño Modernization and

Hardening project to COR3 and FEMA and after working through key project details for 406

hazard mitigation eligibility and EHP requirements with COR3/FEMA, received FEMA Obligation

in May 2022.

In March 2022, LUMA submitted the detailed SOW (including 406HM & EHP requirements) for

one Transmission Pole Replacement Project (Mora 50500) to COR3 and FEMA. This submission

remains under review by FEMA in collaboration with the LUMA team.

In May and June 2022, LUMA submitted the detailed SOW (including 406HM & EHP

requirements) for an additional seven substation projects (Rio Grande CH 2306, Llorens Torres

1106, Centro Medico 1327 & 1359, Tapia 1102, Costa Sur TC, Taft 1105, and Manati TC) to

COR3 and FEMA. By the end of Q4, LUMA had received FEMA Project Obligation for the Manati

TC substation project while the other six remained under FEMA review.

In May 2022, LUMA submitted the detailed SOW (including 406HM & EHP requirements) for one

transmission project (T/Line 38000 San Juan Isla Grande Underground loop). By the end of

Q4, this submission remained under review by FEMA in collaboration with the LUMA team.

In May and June 2022, LUMA submitted the detailed SOW (including 406HM & EHP

requirements) for an additional three Transmission Pole Replacement projects (T/Line 2200,

T/Line 6700, T/Line 13300) to COR3 and FEMA. By the end of Q4, these submissions remained

under review by FEMA in collaboration with the LUMA team.

In April and June 2022, LUMA submitted the detailed SOW (including 406HM & EHP

requirements) for Physical Security projects (Group 1, Group 3) to COR3 and FEMA. By the end

of Q4, these submissions remained under review by FEMA in collaboration with the LUMA team.

In April and June 2022, LUMA submitted the detailed SOW (including 406HM & EHP

requirements) for Substation Minor Repairs projects (Group A, Group C) to COR3 and FEMA. By

the end of Q4, these submissions remained under review by FEMA in collaboration with the

LUMA team.

In June 2022, LUMA submitted the detailed SOW (including 406HM & EHP requirements) for an

additional nine Distribution Pole Replacement projects (Carolina Group 2, Carolina Group 3,

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Caguas Group 5, Caguas Group 7, Bayamon Group 2, San Juan Group 1, San Juan Group 2,

Mayaguez Group 1, Mayaguez Group 4) to COR3 and FEMA. By the end of Q4, these

submissions remained under review by FEMA in collaboration with the LUMA team.

In June 2022, LUMA received Project Obligations from FEMA for two substation projects

(Vieques and Culebra) that were previously submitted to FEMA and COR3 (including 406HM &

EHP requirements) in March 2022.

In June 2022, LUMA submitted the detailed SOW (including 406HM & EHP requirements) for an

IT OT project (Energy Management System) to COR3 and FEMA. By the end of Q4, this

submission remained under review by FEMA in collaboration with the LUMA team.

In June 2022, LUMA received FEMA Project Obligation of $656 million for long lead material

procurements. This will allow LUMA to progress procurement of materials with long lead times in

advance of specific Project Obligations allowing LUMA to shorten overall project timelines.

LUMA completed a formal RFP process for environmental and archaeological specialists to

support with detailed EHP studies and prepare the appropriate project mitigations to comply with

federal and local environmental policies and regulations. LUMA is currently working to award the

contract to the selected vendor.

LUMA continued to finalize contracts for additional A&E resources to support the federally funded

projects and leverage the successful engineering firm(s) to assign projects with FEMA project

numbers to begin A&E preliminary engineering design work towards the development of Detailed

SOWs. LUMA executed two A&E contracts before the end of Fiscal Year 2022 and continues to

progress additional contracts which are in various stages from agreeing to terms and conditions

to FOMB approval.

Undertook individual meetings with each municipality to provide insight into the progress of the

federal funding work to date. During the reporting period, LUMA visited the final municipality n

order to concluded all of the 78 meetings.

Engaged with our grid recovery partners on additional Federal Funding opportunities to include

Department of Energy electrical system improvement Grants, HUD and PRDOH CDBG-DR

Programs for Hazard mitigation, Grid Resilience and Cost Share as well as FEMA 406 Hazard

Mitigation proposals in all major asset categories and projects.

Continue to work on additional proposals utilizing the FEMA/SHPO 404 Hazard Mitigation

program with four key back-up projects proposed and developed, representing $900 million,

should additional 404 HMGP funds become available. These projects were included in the

draft Disaster Recovery Action Plan for public consultations. Of the four projects, three

submission to PRDOH and HUD for final approval.

approval and a subsequent

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1. 136 Projects/Programs initial SOWs1 representing an estimated $8.4 billion in reconstruction work

that are being advanced within LUMA.

2. PREB has approved 135 Projects/Programs initial SOWs. Approval of one Initial SOW was not

received during the quarter representing $0.01 billion in reconstruction activities.

3. Upon receiving PREB approval, LUMA seeks the review and establishment of FEMA Accelerated

Awards Strategy (FAASt) Project numbers from FEMA for each Project submitted by LUMA2.

3

4. Upon receiving the FEMA FAASt number, the work enters the preliminary engineering

development phase. Of the 1884 projects noted above, 94 projects representing ~$2.1 billion

were advanced in the quarter and are at various stages of preliminary engineering, detailed

engineering, or execution. The remaining projects will be awarded to A&E firms upon the

conclusion of the A&E RFP noted earlier.

5. Of the 94 projects noted above, LUMA submitted the 39 Detailed SOWs to COR3/FEMA for

approval representing $0.3 billon.

6. Of the 39 Projects noted above, LUMA has received FEMA Obligation for 14 projects

representing $0.1billion.

1.1.1

Project Status Number of

Projects

Estimated

Amount (2)

Projects/Programs Pending PREB Approval 1 $0.01

Projects submitted to FEMA and awaiting FEMA FAASt Project

number 0 $0.0

1

2

3

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Project Status Number of

Projects

Estimated

Amount (2)

Projects yet to be defined/developed from approved Programs (1) n.a. (1) $3.0

Projects with FEMA FAASt Project number and in the preliminary

engineering phase (i.e., pre-detailed SOW submission)

Unassigned

94 $3.3

Projects with FEMA FAASt Project number and in the preliminary

engineering phase (i.e., pre-detailed SOW submission) Assigned 55 $1.8

Submission of Detailed SOW to FEMA enabling Detailed

Engineering and Construction

Projects Obligated in Detailed Engineering 4 ($0.02)

Projects Obligated in construction 10 ($0.05)

39 $0.3

Total 188 $8.4

(1) A Total of 11 initial SOWs approved by PREB are deemed as Programs that will be divided into multiple Projects over time (as noted in the main text). The Programs include

Streetlights, Substation Minor Repairs, Distribution Poles Replacements, Telecom Infrastructure, Microwave PTP, Physical Security, SCADA Remote Access and RTU

Replacements, Fiber Optic Replacement, Transmission 38kV Pole Replacement, Transmission 115kV Pole Replacement, and Transmission 230kV Pole Replacement. Two

Way Land Mobile Radio Network was previously identified as a Program but has been reclassified as a project.

(2) Estimated amounts are based on the most recent estimated project costs, which may have changed since the initial stages of the FAASt process, and may result in a

fluctuation of the estimated amounts quarter over quarter.

Funding Source Federal Funds

Applied for to Date

Federal Funds

Applied for this

Quarter

Federal Funds

Approved to date

Public Assistance 428 $6.8 $6.3 $0.5

Hazard Mitigation 406 - - -

Total $6.8 $6.3 $0.5

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