Luma Energy
Crews work on power lines

LUMA Chosen to Modernize Puerto Rico’s Electricity Delivery System

July 1, 2020
LUMA is in the process of mobilizing a team to oversee planning for the full transfer of PREPA’s T&D operations.

LUMA Energy, LLC has been selected by the Puerto Rico Public-Private Partnership Authority (P3 Authority) to transform and operate Puerto Rico’s electricity transmission and distribution system. Following an initial transition period, LUMA will work with the Puerto Rico Electric Power Authority (PREPA) under the terms of a 15-year agreement to transform the island’s electricity delivery system and support its overall economic and social development.

LUMA, headquartered in San Juan, was formed by Canadian Utilities Limited, an ATCO company, and Quanta Services, Inc. to serve the people of Puerto Rico. Each company owns a 50% interest in LUMA. LUMA has also engaged Innovative Emergency Management, Inc. (IEM) to assist with the acquisition and administration of the US Federal Emergency Management Administration (FEMA) funding. LUMA was selected following an extensive and competitive process, run by the P3 Authority, involving some of the largest utilities in North America and around the globe.   

According to the P3 Authority’s Partnership Committee Report, “The Partnership Committee believes that the Definitive Proposal submitted by LUMA: reflects the more thorough, detailed, and tailored approach to each of the technical, operational and financial, and legal components of the RFP; presents the better path forward to achieving the Government’s objective of transforming Puerto Rico Electric Power Authority’s (PREPA) aged and inefficient T&D System into one that is safe, customer-centric, affordable, reliable, resilient and sustainable; and is the better option for the people of Puerto Rico.” 

LUMA is in the process of mobilizing a team to oversee planning for the full transfer of PREPA’s T&D operations to LUMA, which is expected to occur over the next 10 to 12 months. Throughout this process, LUMA will collaborate closely with government officials, regulators and PREPA.  

“We are honored to have been selected for this historic contract and we are excited to begin a journey that we know will bring long-term value to the people of Puerto Rico,” said Wayne Stensby, president and CEO, LUMA. “LUMA will not only provide safe, reliable and affordable electricity service, but we will also expedite this electricity transformation in a way that delivers lasting benefits to the people and communities on the island. Working together with the great employees and talent currently at PREPA, LUMA will create an organization that will deliver operational excellence and exceptional customer service.” .

LUMA intends to build a state-of-the-art campus in Puerto Rico to offer customized curriculum and hands-on training to LUMA utility workers and the next generation of Puerto Rico’s skilled workforce. The campus will be managed by Northwest Lineman College, the largest accredited line worker college in the United States, which is owned by Quanta and currently operates four campuses. 

LUMA’s selection by the P3 Authority has received final regulatory and governmental approvals. PREPA currently provides electricity to more than 1.5 million residents in Puerto Rico and operates a network of more than 18,000 miles of T&D lines. LUMA will manage and operate the Puerto Rico electric system for PREPA, which will continue to maintain capital ownership and financing responsibility for the T&D system, as well as continue to operate its power generation assets.

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