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Puerto Rico House approves bill raising penalties for electric companies, prohibits passing fines to consumers
Summary
The House passed Project 268 to expand the Energy Bureau's fine authority—raising penalties to between $10,000 and $250,000—and bars companies from charging those fines to ratepayers. Lawmakers debated whether fines alone are sufficient to address long-standing problems with the island's power system.
The Puerto Rico House of Representatives on Feb. 25 approved Project of the House 268, an amendment to Law 57-2014 (the Energy Transformation and Relief Law) that increases the monetary penalties the Energy Bureau may impose on companies operating the island's electric system and explicitly prohibits companies from passing the cost of any fine on to customers.
The measure, reported by the Government Commission and presented on the floor by Representative Parejo Otero, gives the regulator authority to impose fines “desde un mínimo de diez mil dólares hasta un máximo de doscientos cincuenta mil dólares,” and specifies that any fine must be paid from the company’s own funds and “no podrá ser cargada a la factura eléctrica” of residents or businesses.
Why it matters: lawmakers framed the measure as a tool to strengthen regulatory enforcement after years of complaints about reliability and customer service. Supporters said tougher penalties are necessary to hold operators accountable; critics said higher fines are insufficient without a concrete enforcement will or broader structural changes.
During floor debate, members from multiple parties expressed conditional support while noting limitations. Representative Furket Cordero (who spoke for his delegation) said the amendment addresses some concerns raised in public hearings, including the explicit prohibition on passing fines to consumers. Representative Denis Márquez Lebrón said he would vote for the bill but stressed that fines alone cannot replace other remedies, calling for cancellation of problematic contracts and a faster transition to renewable generation. Representative Lizzy Burgos Muñiz said she opposed the bill, arguing that increasing fines does not lower utility rates and risks placing burdens on households facing rising costs.
The House opened an electronic roll-call and the Clerk announced the result after votes were tallied: Project 268 passed with 48 votes in favor and 1 against.
Discussion vs. decision: the House formally adopted the bill as amended and recorded the roll-call outcome; several members used the debate to reiterate broader energy policy goals—contract cancellation, stronger oversight, and a renewable energy transition—but the measure itself focused on penalties and regulatory tools.
Provisions and limits recorded on the floor: the bill raises fine caps to $250,000, requires fines be paid from the company’s funds (not passed to consumers), and places enforcement with the Energy Bureau. The bill report notes that the Bureau and the energy sector witnesses supported the measure during committee work.
The bill now proceeds according to legislative procedure as an approved House measure.
