NOTICE TO CLIENTS AND FRIENDS
On August 27, 2018, the Puerto Rico Senate voted on and approved Bill No. 984 in the hopes of creating the Puerto Rico Energy Cooperatives Act (the “Bill”). The Bill is on its way to the Puerto Rico House of Representatives for debate. The main purpose behind this piece of legislation is to encourage communities and other organized consumer groups to find new and alternate ways to generate and distribute electric power for their consumption and that of their members through the development of energy cooperatives. Specifically, the Bill highlights the Senate’s intention of furthering the process of decentralizing and modernizing the current energy generation, transmission and distribution model that historically has remained in the hands of Puerto Rico Electric Power Authority (“PREPA”).
The Bill opens the door for these cooperatives to not only generate and distribute electric power for their members, but to also sell surplus electricity to other affiliated consumers or the PREPA. The proposed legislation places the responsibility on the Puerto Rico Energy Bureau (previously known as the “Puerto Rico Energy Commission”) to adopt and implement the regulations and minimum technical requirements needed to establish an energy cooperative. The Puerto Rico Energy Bureau would also review and approve the tariff structure to ensure it is fair and reasonable.
To achieve these goals, the Bill would also introduce several amendments to the Puerto Rico Cooperative Societies General Act of 20141, which would regulate the creation of an energy cooperative. The cooperatives would fall under the jurisdiction of the Cooperative Development Commission for which will ensure compliance with the rules and regulations set forth by the Puerto Rico Cooperative Development Commission Act2. The Bill would also amend the Puerto Rico Energy Transformation and Relief Act3 in order to promote the development and integration of community microgrids, solar communities and energy cooperatives. As a result, this decentralization policy seeks to provide individuals and communities with more alternatives and increase access to renewable energy sources.