2023 Laws of Puerto Rico › TITLE TWENTY-TWO - Public Works (§§ 1 — 1104) › Chapter 28 - Puerto Rico Energy Transformation and RELIEF Act (§§ 1051 — 1056) › Subchapter IV - Creation, Structure, Operation, Budget, and General Powers of the Puerto Rico Energy Administration and the Energy Commission (§§ 1054 — 1054rr) › § 1054ff - Agreements between the Authority and Independent power producers or other electric power service companies

(a) The Energy Commission shall evaluate and approve all agreements between PREPA and any electric power service company, including independent power producers, prior to the execution thereof. This includes, but shall not be limited to the evaluation and approval of power purchase agreements whereby an independent power producer shall provide energy to PREPA for its distribution by the latter.
(b) The provisions of this section shall not apply to power purchase agreements that have been entered into by the Authority prior to the approval of this act, or to those that have been entered into as a result of a request for proposals process under Section 6(B)(a)(iii) of the Electric Power Authority Revitalization Act.
(c) The Commission shall adopt and promulgate regulations that establish the guidelines and standards to which the agreements between PREPA and any independent power producer shall adhere; and the terms and conditions that shall be included in every power purchase and interconnection agreements, including a reasonable cost per kilowatt-hour (kWh) according to the type of generation technology. In the process of analyzing and drafting these regulations, the Commission shall request and consider the comments and feedback of PREPA, the Commonwealth Energy Public Policy Office, independent power producers, and the public in general. The guidelines and standards established by the Commission through regulations shall have the purpose of ensuring compliance with the principles of this chapter, in §§ 191—217 of this title, known as the “Puerto Rico Electric Power Authority Act”, and the public policy of the Commonwealth of Puerto Rico.
(d) In evaluating every proposal of agreements between PREPA and an electric power service company, the Commission shall take into account the provisions of PREPA’s integrated resource plan. The Commission shall not approve an agreement that is inconsistent with PREPA’s integrated resource plan, particularly in all that pertains to the conservation and efficiency goals established in PREPA’s integrated resource plan.
(e) The Commission shall have thirty (30) days after the date on which a project agreement is submitted for its review under this Section, to review it and determine (A) if it approves it, (B) if it declares it contrary to the public interest, or (C) if the project agreement should be evaluated in depth. Provided, that if the Commission fails to issue a resolution with one of these three possible determinations within thirty (30) days, it shall be understood that the project agreement has been approved. If the Commission decides that the project agreement should be evaluated in depth, it shall issue a final resolution and determine whether it approves or declares the project contrary to the public interest within a term that shall not exceed ninety (90) days. If the Commission fails to issue its final resolution within said ninety (90)-day term, it shall be understood that the project agreement has been approved. The resolutions issued by the Commission regarding the approval or declaration against the public interest of these agreements shall be posted on the Commission’s website.
(f) In evaluating a proposal for an agreement between PREPA and an electric power service company, the Commission shall verify whether or not the interconnection jeopardizes the reliability and safety of the electric power grid and require the elimination of any term or condition under the agreement’s proposal that is contrary to or jeopardizes the safe and reliable operations of the electric power grid. The Commission shall not approve any agreement when technical evidence shows that the project in question or the contractual conditions thereof would jeopardize the reliability and safety of the electric power grid of Puerto Rico.
(g) The Commission shall oversee that the rates, fees, rents, or charges paid by PREPA to independent power producers are just and reasonable, and protect the public interest and the treasury. The Commission shall oversee that the charge to be paid for interconnecting to PREPA’s system, including construction fees and wheeling rates, as well as any other PREPA requirement applicable to independent power producers or other electric power service company that wish to interconnect to PREPA’s system, is just and reasonable. In this process, the Commission shall assure that the charges allow for an interconnection that does not affect the capacity of PREPA to provide a reliable electric power service consistent with the protection of the environment, the mandates of PREPA’s Act, and that do not adversely affect PREPA’s customers.
(h) In evaluating any power purchase agreements” proposal, the Commission shall require PREPA to submit the “Supplementary Study” for the project subject of the proposed agreement, duly evaluated and endorsed by PREPA, or the pertinent technical analysis supporting the agreement. If a project does not require a “Supplementary Study”, PREPA shall issue a certification to the Commission stating the reasons for which the circumstances and characteristics of the project do not warrant a “Supplementary Study” or technical evaluation.
(i) PREPA shall issue a “Supplementary Study” within ninety (90) days after the date on which the independent power producer has filed a request for an interconnection evaluation with PREPA. If PREPA believes that a “Supplementary Study” or any other technical analysis is unnecessary, it shall issue a Certification stating the reasons for which the circumstances and characteristics of the project do not warrant a “Supplementary Study” or other technical evaluation, within forty-five (45) days as of the date on which the independent power producer has filed a request for an interconnection evaluation with PREPA. If PREPA fails to submit the “Supplementary Study” or certification, as the case may be, for the project along with the agreement’s proposal, the Commission shall impose the sanctions and remedies it deems pertinent on PREPA and request the Commonwealth Energy Public Policy Office to submit to the Commission a memorandum evaluating the project and the agreement’s proposal and to issue a duly-grounded recommendation.
(j) All power purchase agreements approved by the Commission shall be posted on the Commissions” website.
History —May 27, 2014, No. 57, § 6.33; renumbered as § 6.32 and amended on Feb. 16, 2016, No. 4, § 26.