The short version
- El Vocero reported that the governor expects the 3PPO and the Puerto Rico Electric Power Authority to clarify suppliers this week with the goal of having more than one
- The San Juan Daily Star reported González Colón held meetings last week with Crowley and Naturgy while other companies are being evaluated
- All three outlets reported the government will not cancel its contract with New Fortress Energy while a claim for more than $100 million in damages remains before a federal court
- Telemundo Puerto Rico and the San Juan Daily Star reported the administration is still awaiting Fiscal Oversight Board approval for proposals to mitigate November and December electricity bill increases
Negotiations for multiple LNG suppliers
Governor Jenniffer González Colón said on Monday that the government could define this week which company or companies will supply liquefied natural gas to Puerto Rico. El Vocero reported that the goal is to have more than one supplier to avoid the problems experienced with a single provider. The governor told reporters she expects the Oficina Independiente de Adquisiciones de Terceros (3PPO) and the Autoridad de Energía Eléctrica (AEE) to provide clarity on the contracting process and the start of natural gas supply to replace diesel burned at the San Juan plants.
González Colón had previously reported that the government was in negotiations with Crowley and Naturgy. The San Juan Daily Star reported that meetings with those two firms took place last week while officials examine additional companies. She stated that the experience of relying on a single natural gas supplier "has been grave for Puerto Rico" and that she does not believe in putting "all the eggs in one basket."
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What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
Yo no creo en poner, como dicen en la calle, todos los huevos en una sola canasta.
Our translation: I do not believe in putting, as they say on the street, all the eggs in one basket.
The source's own statement, as quoted by El Vocero. Not verified by PuertoRico.com.
Status of New Fortress Energy contract and litigation
The governor indicated that cancellation of the contract with New Fortress Energy remains on the table but cannot proceed while the government’s lawsuit is active. El Vocero reported that the AEE is seeking to recover more than $100 million attributed to interruptions in LNG supply and has not ruled out amending the complaint to include costs of diesel purchased in recent weeks.
Negotiations continue on a tolling agreement that would allow third parties to use New Fortress Energy’s facilities. NFEnergía and the AEE informed federal Magistrate Héctor Ramos Vega of progress in sharing information. The parties must report by Nov. 13 whether they have reached agreement, or possibly request an extension of a temporary restraining order, according to a court filing cited by El Vocero. González Colón explained that the contract allows for a nominal fee for use of the pier operated by New Fortress, which she said does not constitute paying twice for the same service. The San Juan Daily Star reported she described the fee as standard in other jurisdictions.
Efforts to reduce electricity costs
González Colón confirmed that the Junta de Supervisión Fiscal has not yet approved proposals submitted by her administration to mitigate increases in electricity bills for November and December. Telemundo Puerto Rico reported that the measures would apply to both residential and commercial customers. One proposal involves a temporary suspension of the sales and use tax (IVU) with an estimated impact of $45 million to $50 million; another, described as more substantial, would provide direct relief on electricity bills.
The governor said meetings with the oversight board are pending this week as additional information is provided. She declined to disclose further details but indicated one measure would deliver the largest direct benefit to consumers’ pockets. The San Juan Daily Star reported that the judicial claims against New Fortress Energy and the bill-relief proposals are separate efforts, though both address costs facing consumers.
Where the sources differ
All three sources agree that Governor Jenniffer González Colón expects to define new natural gas suppliers this week after meetings with Crowley and Naturgy, that the goal is multiple suppliers, and that the government will not cancel the New Fortress Energy contract while the lawsuit for more than $100 million is active. El Vocero and the San Juan Daily Star report the $100 million figure as "more than" that amount while Telemundo uses exactly $100 million. The San Juan Daily Star and Telemundo report the governor’s explanation that the pier-use fee is nominal and not double payment; El Vocero does not include that detail. Only El Vocero mentions the Nov. 13 court reporting deadline and the possibility of amending the complaint for diesel costs. Telemundo and the San Juan Daily Star provide the $45-50 million estimate for the IVU proposal, which El Vocero does not quantify.
What the reports do not say
The reports do not name any additional companies under consideration beyond Crowley and Naturgy, state when natural gas supply might actually begin, or specify the exact value of the larger direct-bill relief proposal. They also do not indicate whether the Fiscal Oversight Board meeting will occur before or after the Nov. 13 court deadline, what the board’s likely response is, or the current status of diesel consumption at the San Juan plants.
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 Gobierno podría definir esta semana nuevos suplidores de gas natural
- Reporting Gobierno podría definir esta semana nuevos suplidores de gas natural
- Reporting Gobernadora espera concretar esta semana acuerdos con suplidores de gas natural
- Reporting Gobernadora espera concretar esta semana acuerdos con suplidores de gas natural
How we checked this
El Vocero, the San Juan Daily Star and Telemundo Puerto Rico all reported the governor’s Monday statements after a press conference. Details on the court case and 3PPO role rest primarily on El Vocero while the IVU cost estimate and explicit rejection of double-payment claims rest on the San Juan Daily Star and Telemundo.
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.
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