first published week of: 06/27/2016
Puerto Rico’s government-owned electricity provider won approval to impose a new surcharge on customers to repay bonds, a key step in the utility’s plan to restructure its $9 billion of debt.
The island’s energy commission Tuesday signed off on a 3.10-cent per kilowatt hour charge by the Puerto Rico Electric Power Authority, known as Prepa, according to a statement from the commission. The step is a crucial part of an agreement the utility reached in December, when investors agreed to take a 15 percent loss and suspend principal payments for five years by exchanging their bonds for new securities backed by the charge.
“The transition charge provides a secure repayment mechanism which reduces uncertainty and increases market confidence in Prepa’s financial condition,” the commission said in a statement. continued…