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Transition committee: contract lacks oversight, recommends central "zar" and flags pension and generation risks
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Summary
A transition committee told reporters the current power contract lacks tools to supervise UMA/Luma; it recommended creating a central authority (a "zar"), warned that pension funds were shifted to pay the operator, and flagged a 524-MW gap when a southern coal plant shuts.
The transition committee overseeing energy-sector review said the current contract for the island's electric operations "no tiene las herramientas necesarias para supervisar, regular y fiscalizar adecuadamente las operaciones del UMA," Speaker 1 said at the press session. The committee recommended creating a central authority (described repeatedly as a "zar") with the power to coordinate reconstruction and gather the data needed to make adjustments.
The panel told reporters the contract now in force does not give the government the instruments it needs to compel full transparency from the operator. "No hay nadie a cargo, no hay nadie arriba de todos los componentes," Speaker 1 said, arguing that a single, empowered official must direct and hold actors accountable so reconstruction proceeds effectively.
The committee also raised short- and medium-term fiscal concerns. According to testimony cited by Speaker 1, the Autoridad had recovered, in the words used at the session, "uno punto dos billones de dólares" in reimbursements and had set money aside for pensions and paid about $177 million; in 2023 the Junta de Control Fiscal approved a $300 million loan and the committee said remaining funds were redirected to pay the operator. "Todo el exceso de dinero que el UMA estaba solicitando... ya se ha ido en eso," Speaker 1 said, and the committee urged prompt follow-up to secure pension coverage for roughly "diez mil y pico" pensionados and about "dos mil" surviving beneficiaries.
On system capacity, the committee warned of an imminent drop in generation: the southern coal plant that supplies roughly 524 megawatts will stop operating, and witnesses told the panel they do not expect a new comparable plant to be completed within four years. The panel said alternatives must be found to prevent seasonal shortages and selective outages.
Panelists repeatedly noted legal and operational constraints. Several speakers said the supplemental contract currently in force was negotiated for the bankruptcy period and does not include all original performance metrics; that limits immediate grounds to cancel or modify the agreement without consent or further legal steps. "Hay que buscarle una alternativa a eso," Speaker 1 said of the generation gap; on the contract's enforceability, Speaker 8 described the legal complexities and the need to build a record before seeking cancellation.
The committee said it will deliver a transition report to the incoming governor, who will decide next steps, including whether to establish the proposed central authority, pursue legislative changes, or negotiate contractual adjustments.
