Energy Czar Removes Genera From Replacement Fuel Talks Amid Natural Gas Dispute
Josué Colón Ortiz cited a conflict of interest between Genera PR and New Fortress Energy, ordering the 3PPO to take over negotiations while giving the supplier 24 hours to resume deliveries of the Amur River.
The short version
- Metro Puerto Rico reported that Josué A. Colón Ortiz removed Genera PR from replacement fuel purchase negotiations due to its affiliation with New Fortress Energy
- The energy czar gave New Fortress 24 hours to confirm steps to resume gas deliveries including unloading the Amur River which has been halted since Sept. 16
- Telemundo Puerto Rico stated that the interruption is costing approximately $1.25 million daily in additional diesel fuel ultimately borne by Puerto Rico residents
- Colón Ortiz ordered the 3PPO to direct all replacement fuel price and term negotiations with any suppliers and barred Genera from independent discussions
Conflict of Interest Cited
The director of the Autoridad para las Alianzas Público-Privadas (AAPP) and energy czar Josué A. Colón Ortiz sent letters on Thursday, Oct. 8 to both Genera PR and New Fortress Energy regarding the ongoing natural gas supply interruption. Metro Puerto Rico reported that Colón Ortiz removed Genera from negotiations to obtain replacement fuel for the San Juan power plant because of a conflict of interest with its affiliate New Fortress Energy.
According to the letter to Genera president Winnie Irizarry Velázquez, the 3PPO will immediately assume control of replacement gas purchases, direct negotiations on price and terms, and no contract may be signed without prior AAPP approval. Metro Puerto Rico reported that Colón Ortiz cited Genera's own prior statements acknowledging the affiliation prevents it from independently pursuing contractual remedies against New Fortress.
Demands to New Fortress
In a separate letter to New Fortress executives Alex Bowman and Matt Reinhard, Colón Ortiz gave the company 24 hours to outline steps to resume deliveries, including authorization to unload the Amur River, the vessel's status, a delivery schedule and any remaining claimed impediments. Metro Puerto Rico reported that the energy czar stated there is no contractual or regulatory basis for continued delays.
The report noted that units 5 and 6 of the San Juan plant have been running on diesel since Sept. 16 while TM2500 units at San Juan and Palo Seco lack natural gas. Genera itself estimated the daily extra fuel cost at $1.25 million, a burden Colón Ortiz said falls on Puerto Rico residents. Telemundo Puerto Rico reported that the energy czar ordered Genera to exit the alternative fuel negotiations.
Where the sources differ
Both Metro Puerto Rico and Telemundo Puerto Rico agree that Energy Czar Josué Colón Ortiz sent letters on Oct. 8 ordering Genera PR out of replacement fuel negotiations and directing the 3PPO to take over due to a conflict of interest with New Fortress Energy. Metro Puerto Rico provides extensive details on the content of both letters, the $1.25 million daily cost, the 24-hour deadline given to New Fortress, prior communications from Genera acknowledging the conflict, the AEE federal lawsuit, and the specific conditions New Fortress had demanded. Telemundo Puerto Rico offers a shorter account focused on the order to Genera to exit negotiations for alternative fuel. The sources do not conflict on any facts.
What the reports do not say
The reports do not state whether New Fortress responded within the 24-hour deadline that expired on Friday, Oct. 9, nor do they indicate if replacement fuel contracts have been signed with other suppliers. They also do not specify the current operational status of the affected generating units, the exact volume of gas or diesel being used, or any estimated timeline for full resolution of the dispute.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official Zar de energía señala conflicto de interés entre Genera y New Fortress en crisis del gas natural
- Reporting Zar de energía señala conflicto de interés entre Genera y New Fortress en crisis del gas natural
- Reporting Controversia por gas natural sigue complicándose; Zar de Energía envía cartas
How we checked this
Metro Puerto Rico provided the most detailed account based on the two letters sent by Josué Colón Ortiz, while Telemundo Puerto Rico reported the core decision to remove Genera from the negotiations. The $1.25 million daily cost figure rests on Genera's own estimate as cited by Metro Puerto Rico.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.