EXHIBIT 23 

Case:17-03283-LTS Doc#:4014-19 Filed:10/04/18 Entered:10/04/18 16:51:23 Desc:

Exhibit 23 Page 1 of 9
GOVERNMENT OF PUERTO RICO 

PUERTO RICO ENERGY COMMISSION 

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COMISl6N Of fflERG/A Of PIJHIO RICri 

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IN RE: REVIEW OF THE PUERTO RICO 

ELECTRIC POWER AUTHORITY 

FY19 RATES 

CASE NO.: CEPR-AP-2018-0002 

SUBJECT: Proceeding to Determine 

PREPA's Rates for FY2019, and to Modify 

the January 2017 Rate Order. 

RESOLUTION AND ORDER ESTABLISHING CALENDAR FOR SUBMISSION OF 

INFORMATION 

On May 25, 2018, the Puerto Rico Electric Power Authority ("PREPA") filed its 

Response! to the Puerto Rico Energy Commission's ("Commission") May 22, 2018 Resolution 

and Order in the instant proceeding. In the Attachment A of its Response, PREP A provided 

an annotated version of Appendix A to the Resolution and Order of May 4, 2018, in which it 

included a timeframe for the submission of the required information, as well as the 

responsible party of each request. 

As part of its response, PREP A identified several information requirements for which 

it is unable to meet the Commission's requests. The Commission determines the following 

for such requirements: 

1. For Requirement D(l)(b ), D(2) and D(3) related to Capital Projects, PREP A states that 

the personnel to answer such requests is currently in service restoration and 

unavailable. This response appears to be inconsistent with the statements made by 

one of PREPA's representatives at the May 18, 2018 Technical Conference that all 

spending was being reported to the Federal Oversight and Management Board 

("FOMB"). Furthermore, the implication of not having this information available is 

that rates cannot be adjusted to include either increases or decreases in capital 

spending. Therefore, to the extent information responsive to these questions is being 

reported to the FOMB, it shall also be provided to the Commission. 

2. For Requirement E related to Hurricane Costs, PREPA states that the request will be 

coordinated to assure there are no issues with FEMA, confidentiality, or external 

contractors not under PREP A's control. The Commission clarifies that there should be 

no confidentiality issues as any confidential information shall be handled in 

accordance with the procedures set forth in the Resolution on Case No. CEPR-MI2016-0009 as currently amended and may be amended from time to time. 

1 See PREPA's Compliance Filing pursuant to the Commission's May 22, 2018 Order, Case No. CEPR-AP-2018-

0002, May 25, 2018. 

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Exhibit 23 Page 2 of 9
COMl$KlN 0£ ENERGIA DE ~UHTO RICO 

3. For Requirement G(3) related to Revenue Allocation and Rat'-L.....:..i..~ u....~""6..i......J 

provided a set of caveats regarding the availability of the data requested. Any 

available information related to billing determinants shall be provided to the 

Commission. After the initial information is provided, the Commission, at its 

discretion, may request PREPA to submit the missing information as it becomes 

available. 

4. Requirement H(2) required PREPA to "[l]ist all Directives issued by the Commission 

in the January 2017 and March 2017 Orders in Docket No. CEPR-AP-2015-0001 with 

which PREP A has not complied." PREP A objected to this request but provided no legal 

argument to sustain such objection. The Commission holds the indubitable authority 

to "require and gather [from PREPA and certified energy companies] any pertinent 

or necessary information to properly carry out its powers and duties."2 Therefore, 

PREPA must provide a list in which it details the non-compliances with the 

Commission's directives, as well as the reasons for said non-compliance. 

5. For Requirement H(3) related to the value of riders for Fuel, Purchased Power and 

CIL T, PREP A states that it has information related only to the Fuel and Purchased 

Power riders for the current rate structure. The lack of information related to the CIL T 

rider at this time may result in the CILT rates remaining as they were determined 

during the previous rate case. 

After an evaluation of the proposed timeframe provided in PREPA's Response, the 

Commission ORDERS PREPA to submit the required information in accordance with the 

deadlines established in Appendix A of this Resolution and Order. 

Be it notified and published. 

Angel R. Rivera de la Cruz 

Associate Commissioner 

2 See sub-section (1) of Section 6.3 of Act 57-2014, known as the Puerto Rico Energy Transformation and RELIEF 

Act, as amended. 

2 

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Exhibit 23 Page 3 of 9
2 0 1 4 

CERTIFICATION 

I hereby certify that the majority of the members of the Puerto Rico Energy Commission has 

so agreed on June '2.Z. , 2018. I also certify that on this date a copy of this Resolution and Order 

regarding the Case No. CEPR-AP-2018-0002 was notified by electronic mail to the following: 

n-vazquez@aeepr.com, c-aquino@aeepr.com, n- ayala@aeepr.com, codiot@oipc.pr.gov, 

jperez@oipc.pr.gov, wilma.lopez@aae.pr.gov a francisco.rullan@aae.pr.gov. I certify that 

today, June_, 2018, I have proceeded with the filing of the Resolution and Order issued by 

the Puerto Rico Energy Commission and I have sent a true and exact copy to the following: 

Autoridad de Energia Electrica de Puerto Rico 

Attn.: Nitza D. Vazquez Rodriguez 

Nelida Ayala Jimenez 

Carlos M. Aquino Ramos 

PO Box 364267 

Correo General 

San Juan, PR 00936-4267 

Oficina Estatal de Politica Publica Energetica 

p/c Mr. Francisco Rullan Caparros 

Leda. Wilma I. Lopez Mora 

P.O. Box 413314 

San Juan, Puerto Rico 00940 

Oficina lndependiente de Protecci6n 

al Consumidor 

p/c Ledo. Jose A. Perez Velez 

Leda. Coral M. Odiot Rivera 

268 Hato Rey Center, Suite 524 

San Juan, Puerto Rico 00918 

For the record, I sign this in San Juan, Puerto Rico, today June 1.2;- 2018. 

3 

el Mar Cintron Alvarado 

Clerk 

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Exhibit 23 Page 4 of 9
Appendix A 

Information Requirements Deadlines for PREP A 

Requirement 

No. 

A 

B 

C 

Requirement 

Changes in costs 

1. Identify and justify an appropriate escalation 

factor for each category of costs addressed in 

the January 2017 Rate Order. Likely categories 

are operating expenses ( e.g., generation, 

transmission, distribution, billing, and 

administrative and general, fuel and purchased 

power costs), and for capital expenditures. 

Provisional rate 

1. Distinguishing between the provisional rates 

approved by the Commission's order of June 

27, 2016 and the permanent rates approved in 

the January 2017 Rate Order, explain which 

rates PREP A has charged during which months. 

2. For each month since July 1, 2016, provide a 

detailed breakdown of the revenue collected 

from each element of the rate from each 

customer class, in an Excel-compatible 

electronic format, unlocked, with formulae 

intact. 

Billing of customers during and after the 2017 

hurricanes 

1. Identify the precise period of time during 

which PREPA did not bill customers. Identify 

any differences in dates applicable to different 

customer categories. 

2. Explain how PREPA has handled, or proposes 

to handle, billing customers for consumption 

and demand recorded during the period when 

PREPA did not bill customers. If there is an 

absence of recorded data, describe and explain. 

3. (To the extent not already answered) As a 

result of Hurricanes Irma and Maria and the 

associated recovery process, did PREPA incur 

fuel and purchased power costs that have not 

been recovered from PREPA customers? If so, 

provide a monthly quantification of the costs 

4 

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COM!Si6N DE !NUGIA Of l'OHTO IICO 

2 0 1 4 

Due Date 

August 17, 2018 

July 13, 2018 

July 13, 2018 

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Exhibit 23 Page 5 of 9
Requirement 

No. 

D 

E 

Requirement 

incurred and not recovered, including the costs 

by fuel type (for PREPA's generators) and by 

provider (for purchased power). 

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Due Date 

Capital Projects July 13, 2018 

1. (a) Regarding capital projects whose costs 

were reflected in the January 2017 Rate Order, 

which have been completed? (b) For each 

project not completed, what is the percentage 

of completion? 

2. What other capital projects, not addressed in 

the immediately preceding question and not 

related to hurricane recovery, has PREPA 

begun? Provide a detailed breakdown of the 

projected costs, the percentage of completion 

and the completion schedule. 

3. What capital projects, not identified in the 

immediately preceding two questions, does 

PREPA anticipate starting during FY2019? For 

each project, provide the project budget 

(identifying total planned expenditure by item 

or category as appropriate for the project) and 

the expected expenditure and completion 

schedule. 

Hurricane Costs August 10, 2018 

1. Provide in an Excel compatible electronic 

format a chart or spreadsheet identifying each 

reimbursement request made to any federal 

agency for hurricane recovery costs, showing 

the date of each request, the agency to which 

the request was made, the amount of the 

request, the types of expenses covered by the 

request, whether the request has been granted, 

and the funds received. In the alternative, 

provide (1) a copy of each reimbursement 

request made to any federal agency providing 

hurricane recovery assistance, and (2) a copy of 

each notification of reimbursement received 

from any federal agencies. 

2. Provide a detailed breakdown of restoration 

expenses by month in an Excel-compatible 

5 

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Exhibit 23 Page 6 of 9
Requirement 

No. 

F 

Requirement 

electronic format, unlocked with formulae 

intact, for the Hurricanes Irma and Maria 

recovery efforts. The breakdown should 

include capital expenditures by type 

( distribution, transmission, generation, etc.), 

PREPA labor costs (including, in particular, 

overtime costs), third party (contractor) costs, 

supplies and other operating costs ( e.g. vehicle 

fuel or rental), and any other category of costs 

which is appropriate. 

3. Provide a copy of all reports and/or analyses 

conducted or commissioned by PREPA 

pertaining to restoration costs associated with 

Hurricanes Irma and Maria. 

4. Provide a projection of recovery costs detailed 

by capital and expenses anticipated for FY2019 

and, to the extent available, for subsequent 

years. 

Fuel Costs 

1. Provide monthly fuel consumption for each of 

PREPA's generating units from January 2017 to 

the most recent data available. Provide the 

monthly fuel consumption data in an Excel 

compatible electronic format with all formulae 

intact. 

2. Provide monthly fuel prices for each of PREP A's 

generating units from January 2017 to the most 

recent data available. Provide the monthly fuel 

price data in an Excel compatible electronic 

format with all formulae intact. 

3. Provide monthly fuel costs for each of PREPA's 

generating units from January 2 017 to the most 

recent data available. Provide the monthly fuel 

cost data in an Excel compatible electronic 

format with all formulae intact. PREPA may 

combine its response to these first three fuel 

cost questions in a single spreadsheet if 

desirable. 

4. Provide monthly delivered energy for each of 

PREPA's power purchase agreements from 

January 2017 to the most recent data available. 

6 

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COMl!i6N DE ENERGIA DE PUERTO IICO 

2 0 1 4 

Due Date 

July 13, 2018 

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Exhibit 23 Page 7 of 9
Requirement 

No. 

G 

Requirement 

Provide the monthly energy data in an Excel 

compatible electronic format with all formulae 

intact. 

5. Provide monthly purchased power costs for 

each of PREPA's power purchase agreements 

from January 2017 to the most recent data 

available. Provide the monthly purchased 

power cost data in an Excel compatible 

electronic format with all formulae intact. 

6. Did either hurricane trigger force majeure 

clauses in any of PREPA's fuel or purchased 

power contracts? If so, provide a description of 

the clause and its impact on current contracts. 

Revenue Allocation and Rate Design 

1. Provide PREPA's total booked base revenue by 

month, from January 2017 to the most recent 

month available. 

2. Provide PREPA's booked base revenue by tariff 

by month, from January 2017 to the most 

recent month available. 

3. For each tariff code (or if data is not available 

by tariff code, by tariff), provide the following 

data by month, from January 2017 to the most 

recent month available. 

a. Number of customers 

b. Number of customers with PREPA power 

supply 

c. Number of meters read 

d. Number of meters read with non-zero 

energy use 

e. Total energy on meters read 

f. Total energy revenue 

g. Total billing demand on meters read (for 

classes with demand billing) 

h. Total demand revenue 

i. Bills rendered by month 

j. Revenue billed by month 

4. Provide the final version of monthly 

projections for FY2017 that PREPA presented 

in Case No. CEPR-AP-2015-0001, by tariff or 

7 

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2 0 1 4; 

Due Date 

July 13, 2018 

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Exhibit 23 Page 8 of 9
Requirement 

No. 

H 

Requirement 

tariff code, for each of these billing 

determinants: 

a. Customer number 

b. Energy (by block, if applicable) 

c. Billing demand 

5. Provide PREPA's current projections for 

FY2019, by tariff or tariff code, for these billing 

determinants: 

a. Customer number 

b. Energy (by block, if applicable) 

c. Billing demand 

6. Provide the base revenues in FY 2019, by tariff 

or tariff code, that would result from the 

projected billing determinants and the current 

rates. 

Miscellaneous 

1. Please provide any available information about 

PREPA's levels of bad debt (monthly or 

quarterly) from January 2017 to the present. 

2. List all Directives issued by the Commission in 

the January 2017 and March 2017 Orders in 

Docket No. CEPR-AP-2015-0001 with which 

PREPA has not complied. 

3. Provide PREPA's workpapers supporting the 

value of each rider (Fuel, Purchased Power, and 

CIL T) for each rider revision that PREP A has 

conducted since January 2017. 

4. For each rider (Fuel, Purchased Power, and 

CILT), provide PREP A's projection of the value 

that will be in effect in July 1, 2018. 

8 

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COMJSt6N Of fNERGIA Of PU!ltlO aico 

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Due Date 

July 13, 2018 

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Exhibit 23 Page 9 of 9