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Public-Private Partnerships Authority · P3A Puerto Rico | Welcome to the new portal of the Public-Private Partnerships Authority of Puerto Rico

P3 logo with dark lettering, colorful geometric ring, and pink, teal, and yellow dots on a transparent background.
Logo of Puerto Rico Public-Private Partnerships Authority with coat of arms and Government of Puerto Rico text.
P3 logo with dark lettering, colorful geometric ring, and pink, teal, and yellow dots on a transparent background.Logo of Puerto Rico Public-Private Partnerships Authority with coat of arms and Government of Puerto Rico text.

Active Partnerships

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Private concessionaires responsible for the strategic management, modernization, operation, and maintenance of critical aviation, maritime transit, and cruise terminal infrastructure.

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Concessionaires responsible for the operation, maintenance, rehabilitation, and improvement of toll roads, including the implementation of road safety and traffic management.

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Private concessionaires and operators entrusted with the operation, maintenance, and modernization of Puerto Rico’s critical energy infrastructure.

Transition Out Process

Energy Operation & Distribution System

The Puerto Rico Public‑Private Partnerships Authority has identified compliance deficiencies by the operator and has documented the judicial proceedings and processes under review related to the termination of the operating agreement.

OVERVIEW

Executive Summary

The Puerto Rico Public-Private Partnerships Authority (P3A) has initiated legal and administrative proceedings against LUMA Energy LLC for alleged material breaches of the contract governing the operation and maintenance of the electric transmission and distribution system. The case involves multiple legal proceedings, regulatory interventions, and actions aimed at safeguarding the public interest, which has resulted in an evaluation of LUMA's contractual performance.

Involved Parties

Primary Plaintiff: Puerto Rico Public-Private Partnerships Authority
Defendant: LUMA Energy LLC
Regulatory Intervention: DACO (Department of Consumer Affairs)
Coordination: Government of Puerto Rico (interagency)

Current Status

Initiated: Notifications since the start of the contract
Jurisdiction:
Courts of Puerto Rico
Current Phase: Evaluation of contractual scenarios
Status:
Active judicial and administrative proceedings

Context of Contract

LUMA Energy assumed the operation of Puerto Rico’s Electric Power Transmission and Distribution System under an Operation and Maintenance (O&M) agreement. The Puerto Rico Public‑Private Partnerships Authority (P3A), as the entity responsible for overseeing public‑private partnerships, has documented compliance deficiencies by the operator, resulting in escalated corrective actions, including formal judicial proceedings and the evaluation of contractual options ranging from conditional continuation to the potential termination of the agreement.

TIMELINE

July 22, 2025
DACO challenges Liability Waiver and NEPR role

Opens legal front for consumer protection by requesting the annulment of a clause included in the LUMA Energy contract under Section 4.1(g).

‍Acting Entity: DACO

ACTION

LAWSUIT

August 25, 2025
LUMA requests federal forum for controversy

LUMA expects the litigation to end the government's attempts to cancel the OMA contract.

Acting Entity: LUMA

ACTION

LAWSUIT

September 16, 2025
Government argues dispute does not belong in bankruptcy process

Dismiss the lawsuit filed by LUMA Energy and to deny the preliminary injunction requested.

Acting Entity: P3A

ACTION

MOTION

October 27, 2025
LUMA’s attempt to halt DACO case rejected

‍Federal Judge Laura Taylor Swain denied LUMA Energy's emergency motion to suspend the lawsuit filed againstthem by DACO , leaving continuation of the proceedings in the hands of the Supreme Court of Puerto Rico.

‍Acting Entity: Federal Court

ACTION

RULING

December 1, 2025
Court invalidates immunity granted to LUMA

Strengthens consumer claims.

‍Acting Entity: DACO

ACTION

FINAL JUDGEMENT

December 11, 2025
Action to invalidate contract extension

Direct challenge to contractual validity; the extension provides indefinite control over the operation of the electrical system and strips the P3A and PREPA of their rightful decision-making authority to protect the public interest.

Acting Entity: P3A/ PREPA

ACTION

LAWSUIT

December 15, 2025
LUMA requests to removes state case to Federal Court

State case placed on hold for request that the legal action by the Public-Private Partnerships Authority (P3A) and the Puerto Rico Electric Power Authority (PREPA) be transferred to the Federal Court under Title III.

‍Acting Entity: LUMA

ACTION

REMOVAL REQUEST

December 16, 2025
Judgment ordering the suspension of the proceedings

Once the petition is presented by Luma “Notice of Removal”, the state government is prevented from making decisions.

Acting Entity: State Court

ACTION

SENTENCE

December 16, 2025
Governor lawsuit to invalidate contract extension

Annulment of the OMA contract, declaring the extension invalid. Claiming LUMA should maintain its obligation to collaborate on the transition process.

‍Acting Entity: Governor Jenniffer Gonzalez Colón / Government of Puerto Rico

ACTION

LAWSUIT

December 19, 2025
Denying motion for provisional relief

The judge Taylor Swain has returned the case to the court in Puerto Rico because they are regulatory issues.

Acting Entity: Federal Court

ACTION

RULING

December 22, 2025
FOMB and LUMA request to take case to Federal Court

FOMB states that only the Title III court has exclusive jurisdiction over all PREPA property, including the agreements of the OMA contract.

Acting Entity: FOMB/ LUMA

ACTION

REMOVAL REQUEST

May 8, 2026
Judge Laura Taylor Swain orders cases related to LUMA’s contract to be returned to the state court system

Federal Judge Laura Taylor Swain determined that disputes related to the annulment of the contract must be addressed by state courts, thus ordering the cases to be remanded to the Court of First Instance, concluding that they fall within the exception to the Government’s regulatory power under PROMESA.

Acting Entity: Federal Court

ACTION

RESOLUTION