Governor Jennifer González used her May 29 address to place the island's energy situation at the center of her agenda, detailing legal, contractual and operational steps she said the administration has taken to stabilize generation, reduce outage risk and accelerate reconstruction.

She said the administration enacted two laws this year and issued executive orders to (1) secure continuity of 500 megawatts of base generation through 2032, (2) relax certain renewable targets while preserving a long-term goal of 100% renewables by 2050, and (3) raise penalties for operator noncompliance. She also announced the SAT de Energía (an executive office) and described actions to renegotiate existing generation contracts with AES and others.

"...sin tapujos y sin rodeos. Luma se va," the governor said in Spanish when describing the end of the operator's privileged treatment and the start of a transition process designed to ensure continuity of service while contracts are modified.

González and her team outlined specific contract amendments and projected savings: an amendment to AES's contract that includes a single payment of $110,000,000 (payable in installments) in exchange for removing annual incentives, which the administration projected could save Puerto Rico "hasta 805,000,000 de dólares" over the life of the contract; an amendment to Negisa's contract that she said could yield $302,000,000 of cumulative savings and add 80 megawatts of capacity.

She said regulatory and procurement milestones are time-sensitive: a procurement and conversion program for gas-fired generation must clear the negotiado and the Oversight Board by mid-June, and the administration expects commissioning and temporary units to raise capacity by several hundred megawatts for summer demand. The governor presented numbers for generation capacity increases: 3,200 megawatts with recent units in service and a pathway to 3,800 megawatts including temporary capacity, and up to 800 megawatts of contracted temporary generation to reduce interruption risk.

The administration described a fiscal and regulatory package that includes using federal reconstruction funds (the governor said more than $18 billion was appropriated to Puerto Rico) but noted federal project requirements and interagency reviews currently delay disbursement. She said the executive branch has issued orders intended to expedite permitting and federal interaction.

Why it matters: Puerto Rico's energy supply is central to public safety, health care, economic activity and the prospect of robust manufacturing. The governor presented legal and contractual steps designed to increase near-term generation and to create a framework for oversight and competitive procurement. Many measures require federal and regulatory approvals and depend on contract negotiations and implementation timelines.

The speech did not include roll-call votes; the governor described a set of administrative actions, proposed laws and executed executive orders but left the precise legislative text and regulatory approvals to follow-up steps.