On Sept. 20, 2017, Puerto Rico suffered the impact of the most catastrophic hurricane in modern times. The widespread destruction of the island’s infrastructure became one of the catalysts for the government to push for the privatization of the island’s energy distribution.
Today, after almost three months of controlling the distribution of electric power in Puerto Rico, the private company, LUMA Energy, has proven to be a disaster. Its performance proves once again that the assumption of efficiency and stability that often follows arguments favoring privatization of utilities and services is not always true.
The list of recent incidents includes massive power outages and an increase in power surges. These, along with daily complaints of citizens’ damaged equipment, are some examples of the company’s inability to manage a complex system.
While it is true that storms weakened the power grid, and poor maintenance was a significant problem before the company took over, LUMA has provided an extremely unreliable service to the public. The unreliability is not solely in terms of steady power distribution but also poor customer service. In the past, citizens’ complaints were answered within hours and dealt with within days. Now complaints sometimes are not even answered.
Even with the service interruption, the higher bills customers receive are making things worse for the company.
With the peak of the hurricane season just days away, citizens are frightened of the thought of reliving the traumatic experience after Hurricane Maria. Although some on the archipelago have invested in alternative power sources, like solar panels and power generators, most residents and businesses rely exclusively on the power grid.
The loss of personnel with the proper system knowledge was one of the significant concerns in the transition from the previous government-operated company to LUMA. Adding that issue to the actual staff shortage ready to act during a major emergency is a recipe for disaster.
While the company may hire temporary workers from its parent companies, the damage could be worse without the expertise of seasoned workers. Today, this is one of the major factors affecting the service.
Multiple power outages and power surges have pushed politicians to address the situation in the past several weeks, including Bayamon mayor Ramon Luis Rivera and Puerto Rico’s resident commissioner Jenniffer González. In a public statement two weeks ago, Rivera pointed out how the complaints are a source of anxiety for the citizens and regretted the inaccessibility of reaching LUMA personnel. In a statement on Twitter, González railed against the high cost for the unreliable service, adding that she will meet Congress on Oct. 6 to discuss the management of public funds.
With the millions of dollars in federal funds already available, the government could easily invest in local infrastructure programs to ramp up the creation of microgrids. The investment would not only provide a more reliable power system but also reduce electricity costs.
Unfortunately, LUMA’s mismanagement of the power grid added to the inefficient use of public funds are perpetuating the power grid’s real modernization. In the meantime, the citizens are left to deal with a power grid in shambles.
Johnny Irizarry Rojas is a Ph.D. student in history at Florida International University.
