LUMA Energy Privatization

On June 1, 2021, LUMA Energy, a private consortium formed by Quanta Services (Houston, Texas) and ATCO Ltd. (Calgary, Canada), assumed control of Puerto Rico's electrical transmission and distribution system. The 15-year contract was approved by the Puerto Rico Public-Private Partnerships Authority and the Financial Oversight and Management Board (FOMB, created under PROMESA).

The privatization came after years of deteriorating service by the public utility PREPA (Puerto Rico Electric Power Authority), which was devastated by Hurricane María in 2017 and burdened by billions in debt. However, LUMA's takeover has been widely criticized:

• Electricity rates have increased significantly, with Puerto Ricans paying among the highest rates in the United States
• Blackouts have continued and in some cases worsened
• Customer service has deteriorated
• LUMA executives receive high salaries while many Puerto Ricans struggle with energy costs
• The contract was negotiated without meaningful public input

Critics argue that the privatization represents a continuation of colonial extraction: mainland corporations profiting from Puerto Rico's infrastructure while Puerto Ricans bear the costs. Massive protests have called for LUMA's removal, and the company has become a symbol of the fiscal control board's priorities of debt repayment over public welfare.