PREC Denies National Public Finance Guarantee Corporation Petition

Notice Concerning the Publication of a Regulation
July 27, 2015
Notice Concerning Proposed Regulation
March 3, 2016

San Juan, Puerto Rico- The Puerto Rico Energy Commission (PREC) issued a resolution today denying a petition for rate review and establishment of temporary electricity rate filed on September 17, 2015 by the National Public Finance Guarantee Corporation (National), the successor in interest to MBIA Insurance Corporation and insurer of payment of principal and interest of nearly $1.4 billion dollars of bonds issued by the Puerto Rico Electric Authority (PREPA), said PREC.

National requested the PREC to order the consolidation of its Petition with the matter of the rate review of the Puerto Rico Electric Authority to establish a temporary base rate increase of at least 4.2 cents per kilowatt hour over PREPA’s existing rates while the Commission’s rate review is pending; to order PREPA to respond to the Petition within fourteen days of service, and to complete the consolidated rate review proceeding within four months of the filing of National’s Petition.

On May 29, 2015 the PREC issued a First Order on Rate Case Proceeding (First Order) stating, among other things, that the Commission will issue a regulation on rate filing requirements to insure it has the information needed to establish just and reasonable rates. On July 24, 2015 the PREC enacted Regulation 8620, known as Regulation on Rate Filing Requirements for PREPA. Its purpose is to establish the information PREPA must include in its formal application proposing new rates to ensure that the Commission has all the elements it needs to fulfill its statutory mandate to approve just and reasonable rates.

Any rate review by the PREC, including a temporary rate, must be based on sufficient substantial evidence assessed in an adjudicatory proceeding. In its rate review process, the Commission must thoroughly evaluate PREPA’s entire financial and operational condition in order to be in a position to approve rates. This must include detailed information related to PREPA’s plant investment, income statements, financial statements, projections and forecasts, and the cost of service, among other things.

The information submitted as part of National’s Petition does not meet the standards and submission requirements set forth on Regulation 8620. As a consequence, it does not constitute sufficient evidence to substantiate National’s request for a temporary base rate increase. The information provided by National is mostly focused on PREPA’s obligations to its bondholders and creditors, which does not represent PREPA’s entire financial condition. Furthermore, the provided information is not final nor it is necessarily representative to the costs PREPA will face in the “rate year”, the first year in which PREPA’s new rates will go into effect, as defined on Regulation 8620. Therefore, National’s request for a temporary base rate increase was denied.

In relationship with National’s request to set a completion date for the rate review proceeding, the PREC will not establish such date at this time. As stated in the First Order, the Commission will establish procedural dates, including the dates for technical and public hearings, after it has received PREPA’s formal application and has determined that it is complete. Once this is determined, the PREC will issue an order inviting organizations and individuals wishing to participate in the technical hearings, to submit a petition to intervene by a specified date. The PREC encouraged National to use this mechanism in order to have an active participation in the rate review process as an intervening part. Petitions to intervene must comply with the Uniform Administrative Procedure Act.

On the other hand, in terms of National’s request to order PREPA to respond to the Petition within fourteen days of service, in light of PREC’s determination in the present Resolution, is unnecessary to require PREPA to respond to each point in National’s Petition. Moreover, National’s notice of service to PREPA about the filing of the Petition is contrary to the provisions of PREC’s regulations and, therefore, null and void.

And finally, since the Commission has denied each of National’s requests, there is no remaining issue to consolidate with the existing rate review procedure. If National is not satisfied with the PREC determination, it may file a motion for reconsideration before the Commission.

The Resolution is available on the website of the PREC. You can access it by visiting the following link: National Public Finance Guarantee Corp. (Petitioner) v. Puerto Rico Electric Power Authority (Respondent).

As the PREC is currently working on the rate review case, for ethical reasons and to maintain the impartiality and purity of this adjudicative process, its members –President, Agustín Carbó Lugo, Esq., and its two Associate Commissioners, Ángel Rivera de la Cruz, PE and Edison Aviles-Deliz, PE, Esq., PE– will not be making any public statements, judgments or opinions other than those stated on this Press Release.


The Puerto Rico Energy Commission (PREC) was created by Act 57, also known as: “Act for the Transformation and Energy Relief of Puerto Rico. The Commission will have the power, among other issues, to: regulate energy companies and approve and revise rates or charges charged by such companies for any matter directly or indirectly related to the rendering of electrical services; ensure prices in power purchase agreements, wheeling rates and interconnection charges are fair and reasonable; regulate wheeling of energy; revise and approve minimum technical requirements and additional technical requirements for the interconnection of distributed generators and oversee compliance with the same; and set standards for facilities or plants of generating electric companies to guarantee efficiency and reliability of electric service in accordance with industry best practices and oversee compliance with such standards.

The Commission is integrated by a president and two associate commissioners. It is located in the World Plaza Building, Muñoz Rivera Ave. 7th Floor, Ste. 702, Hato Rey. The Commission’s website is:

Contact for the press:

Marilyn Vicens

Communications and Press Office Director



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Antonio Torres-Miranda is presently an Associate Commissioner for the Energy Bureau of the Puerto Rico Public Service Regulatory Board (Energy Bureau). Previously, Mr. Torres had been the Director of the Legal Advisory Division of the Energy Bureau.

Mr. Torres has a bachelor’s degree in mechanical engineering from the University of Puerto Rico. He also has a master’s degree in engineering management from the Polytechnical University of Puerto Rico. In the 1990’s he passed the exam to be a Certified Energy Manager. He is presently a member of the Puerto Rico Professional College of Engineer and Land Surveyors.

Mr. Torres graduated with honors from the Interamerican University of Puerto Rico where he obtained his Juris Doctor degree. He is presently member of the bar of the Commonwealth of Puerto Rico and is a member of the U.S. District of Puerto Rico Federal bar.

He commenced his engineering work experience with the Department of Defense in a Naval base in Virginia were he designed industrial ventilation systems. He then went to New York to work with Kennetech Energy Management were he first commenced being immersed in the energy sector. He then transferred to Puerto Rico with Kennetech in which he conducted wind studies throughout the island together with U.S. Wind Power. He continued implementation of energy management systems in several industrial companies throughout Puerto Rico until Kennetech joined forces with Enron to develop the first privately owned power plant in Puerto Rico known as EcoElectrica. This 450 MW natural gas power plant included the development of the first LNG terminal in Puerto Rico.

He also worked as a contractor with the Puerto Rico Electric Power Authority in the development of a 42 miles natural gas pipeline.

Before joining the Energy Bureau Mr. Torres developed several natural gas projects in Puerto Rico.

Ferdinand Ramos-Soegaard attained a bachelor’s degree in electrical engineering (BSEE) graduating from the Georgia Institute of Technology in Atlanta, GA in 2000. His degree specialized in power distribution and telecommunications systems.

Mr. Ramos-Soegaard is a licensed professional engineer in the Commonwealth of Puerto Rico and the state of Florida. Throughout his professional carrier Mr. Ramos has been involved in all aspects of the design, construction and maintenance of electrical distribution systems, including high voltage transmission lines and renewable energy interconnections to the Puerto Rico Electric Power Authority subtransmission grid.

Sylvia B. Ugarte Araujo holds a bachelor’s degree in industrial and Systems Engineering from the University of Florida (1998). She studied at the Inter-American University of Puerto Rico School of Law (2004) and then obtained a Master of Laws from the Inter-American University of Puerto Rico (2019). Ms. Ugarte is admitted to the practice of law and notary by the Supreme Court of Puerto Rico (2004), the Federal Court for the District of Puerto Rico, for the First Circuit of Boston (2005), the Court of Appeals of the First Circuit (2005) and the Supreme Court of Texas (2018). She was Director of the Office of Legal Counsel of the Energy Bureau of the Public Service Regulatory Board and the Designated Director of the Office of Legal Counsel of the Public Service Regulatory Board. She has served as Legal Director of the Puerto Rico Infrastructure Financing Authority and has worked with renowned law firms. She has over fifteen (15) years of vast professional experience as a trial attorney with an emphasis on commercial and construction litigation and extensive experience in administrative law. Also, as an industrial engineer she has been a consultant for government agencies in charge of large projects and in private entities.

Lillian Mateo-Santos obtained her Bachelor’s Degree in Business Administration from the University of Puerto Rico, Río Piedras Campus, in 1993 and a Juris Doctor degree from the University of Puerto Rico School of Law in 1996. In 1999, she obtained a degree of Masters of Laws (LLM) in Environmental and Energy of the Tulane University Law School. Before joining the Puerto Rico Energy Bureau, Ms. Mateo-Santos was a member of various law firms. Her private practice was focused on energy, environmental, land use and permitting matters, including administrative law litigation.

On June 5, 2019, Ms. Mateo-Santos was elected 2nd Vice President of the Southeastern Association of Regulatory Utility Commissioners (SEARUC). She is a member of the American Bar Association and is admitted to practice law and notary law in Puerto Rico, and the United States Court of Appeals for the First Circuit.

Edison Avilés-Deliz obtained his Bachelor of Science in Electrical Engineering with specialties in Power and Control Systems (BSEE) Cum Laude from the University of Puerto Rico, Mayagüez Campus in 1991 and a Juris Doctor (JD) also Cum Laude from the University of Puerto Rico School of Law in 1997. In addition, he holds Master degrees with Distinctions in Diplomacy/International Relations/Business (MA) from Norwich University in Vermont and in Energy Law from Vermont Law School (LLM).

Avilés-Deliz is a licensed engineer and member of the College of Engineers and Surveyors of Puerto Rico (CIAPR). He was president of the Disciplinary and Professional Ethics Tribunal of the CIAPR, of the Institute of Electrical Engineers of CIAPR and of the Society of Electrical Engineers of Puerto Rico. He is admitted to practice as a public notary in Puerto Rico and as a lawyer, both in the District Court of Puerto Rico and the Court of Appeals for the First Federal Circuit.

He is a member of Phi Eta Mu Fraternity, the Engineering Honor Society Tau Beta Pi, and the International Studies Honor Society Sigma Iota Rho. He is also a Senior member of the IEEE.

Antonio Torres-Miranda es actualmente Comisionado Asociado del Negociado de Energía de la Junta Reglamentadora de Servicios Públicos de Puerto Rico (Negociado de Energía). Anteriormente, el Sr. Torres había sido Director de la División de Asesoría Legal del Negociado de Energía.

El Sr. Torres tiene un bachillerato en ingeniería mecánica de la Universidad de Puerto Rico. También tiene una maestría en administración de ingeniería de la Universidad Politécnica de Puerto Rico. En la década de 1990 aprobó el examen para ser Gerente de Energía Certificado. Actualmente es miembro del Colegio de Ingenieros y Agrimensores de Puerto Rico.

El Sr. Torres se graduó con honores de la Universidad Interamericana de Puerto Rico donde obtuvo su título de Juris Doctor (JD). Actualmente es miembro del Colegio de Abogados del Estado de Puerto Rico y es miembro del Colegio de Abogados Federal del Distrito de Puerto Rico de los Estados Unidos.

Comenzó su experiencia laboral en ingeniería con el Departamento de Defensa en una base naval en Virginia donde diseñó sistemas de ventilación industrial. Luego se fue a Nueva York para trabajar con Kennetech Energy Management, donde comenzó a sumergirse en el sector energético. Luego se transfirió a Puerto Rico con Kennetech, donde realizó estudios eólicos en toda la isla U.S. Wind Power. Continuó con la implementación de sistemas de administración de energía en varias empresas industriales en todo Puerto Rico hasta que Kennetech unió fuerzas con Enron para desarrollar la primera planta de energía de propiedad privada en Puerto Rico conocida como EcoEléctrica. Esta planta de energía de gas natural de 450 MW incluyó el desarrollo de la primera terminal de GNL en Puerto Rico.

También trabajó como contratista con la Autoridad de Energía Eléctrica de Puerto Rico en el desarrollo de una tubería de gas natural de 42 millas.

Antes de unirse al Negociado de Energía, el Sr. Torres desarrolló varios proyectos de gas natural en Puerto Rico.

La Lcda. Sylvia B. Ugarte Araujo posee un Bachillerato en Ingeniería Industrial y de Sistemas de la Universidad de la Florida (1998). Estudió en la Escuela de Derecho de la Universidad Interamericana de Puerto Rico (2004) y luego obtuvo una Maestría en Derecho de la Universidad Interamericana de Puerto Rico (2019). La Lcda. Ugarte está admitida a la práctica de la abogacía y la notaría por el Tribunal Supremo de Puerto Rico (2004), al Tribunal Federal, Distrito de Puerto Rico, al Primer Circuito Federal de Boston (2005), al Tribunal de Apelaciones del Primer Circuito (2005) y al Tribunal Supremo de la jurisdicción del estado de Texas (2018). Fue Directora de la Oficina de Asesoramiento Legal del Negociado de Energía de la Junta Reglamentadora de Servicio Público y la Directora Designada de la Oficina de Asesoramiento Legal de la Junta Reglamentadora de Servicio Público. Ha ejercido como Directora Legal de la Autoridad para el Financiamiento de la Infraestructura de Puerto Rico y ha trabajado con bufetes de abogado de renombre. Tiene sobre quince (15) años de vasta experiencia profesional como abogada litigante con énfasis en litigio comercial y construcción y una amplia experiencia en derecho administrativo. Así también, como ingeniera industrial ha sido consultora para agencias gubernamentales encargadas de proyectos de envergadura y en entidades privadas.

Ferdinand A. Ramos-Soegaard obtuvo su Bachillerato en Ciencias en Ingeniería Eléctrica (BSEE, por sus siglas en inglés) del Georgia Institute of Technology en Atlanta, GA en el 2000, con especialidad en sistemas de distribución de potencia y telecomunicaciones.

Ramos-Soegaard es ingeniero licenciado en el Estado Libre Asociado de Puerto Rico y en el Estado de Florida. A través de su carrera profesional, Ramos-Soegaard ha estado envuelto en todos los aspectos del diseño, construcción y mantenimiento de sistemas de distribución eléctrica, incluyendo líneas de transmisión de alto voltaje e interconexiones de sistemas de energía renovable a la red de subtransmisión de la Autoridad de Energía Eléctrica de Puerto Rico.

Lillian Mateo-Santos obtuvo su Bachillerato en Administración de Empresas de la Universidad de Puerto Rico, Recinto de Río Piedras en 1993 y el grado de Juris Doctor de la Facultad de Derecho de la Universidad de Puerto Rico en 1996. En 1999 obtuvo una Maestría en Derecho (LLM) en Ambiental y Energía de la Facultad de Derecho de la Universidad de Tulane. Antes de formar parte del Negociado de Energía de Puerto Rico, la Lic. Mateo-Santos fue miembro de varios bufetes de abogados. Su práctica privada se enfocó en asuntos de energía, ambiental, uso de terrenos y permisos, incluyendo litigación de derecho administrativo.

El 5 de junio de 2019, la Lic. Mateo-Santos fue elegida 2nda Vice Presidenta del Southern Association of Regulatory Utility Commissioners (SEARUC). Es miembro de la American Bar Association y está admitida para ejercer como abogado y notario público en Puerto Rico, y en el Tribunal de Apelaciones para el Primer Circuito Federal.

Edison Avilés-Deliz obtuvo su bachillerato Cum Laude en Ingeniería Eléctrica con especialidades en Sistemas de Controles y Potencia (BSEE) de la Universidad de Puerto Rico, Recinto de Mayagüez en 1991 y un Juris Doctor (JD) también Cum Laude de la Facultad de Derecho de la Universidad de Puerto Rico en 1997. Además, ostenta maestrías con Distinciones en Diplomacia/Relaciones Internacionales/Negocios (MA) de la Universidad de Norwich en Vermont y en Derecho en Energía de la Universidad de Derecho de Vermont (LLM).

Avilés-Deliz es ingeniero licenciado y miembro del Colegio de Ingenieros y Agrimensores de Puerto Rico (CIAPR). Fue presidente del Tribunal Disciplinario y de Ética Profesional del CIAPR, del Instituto de Ingenieros Electricistas del CIAPR y de la Sociedad de Ingenieros Electricistas de Puerto Rico. Está admitido para ejercer como notario público en Puerto Rico y como abogado, tanto en el Tribunal de Distrito de Puerto Rico como el Tribunal de Apelaciones para el Primer Circuito Federal.

Pertenece a la fraternidad Phi Eta Mu, a la Sociedad de Honor de Ingeniería Tau Beta Pi, a la Sociedad de Honor de Estudios Internacionales Sigma Iota Rho. También es miembro senior de la IEEE.