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Regulations for the implementation of the mechanism provided by PREPA to municipalities instead of paying taxes

The Contribution or Payment in Lieu of Taxes (CILT) is the mechanism, established by the Puerto Rico Electric Power Authority’s (PREPA’s) Organic Act, by which the utility compensates municipalities with power, in exchange for municipal tax exemption. To meet these goals, the PREC approved the Regulation on CILT to ensure the adoption of the necessary regulations to implement the compensation mechanism.