LUMA Energy

Following Hurricane Maria in 2017, which exposed longstanding weaknesses in Puerto Rico’s electric grid under PREPA, the government contracted LUMA Energy, a private consortium, in 2021 to manage electricity transmission and distribution.{{Cite web |date=2024-12-31 |title=What to know about Luma Energy, the company involved in Puerto Rico's massive blackout - CBS News |url=https://www.cbsnews.com/news/puerto-rico-power-outage-blackout-luma-energy/ |access-date=2025-04-04 |website=www.cbsnews.com |language=en-US}}

After taking over operations, LUMA launched several infrastructure repair and upgrade initiatives. These included replacing over 17,000 utility poles and clearing vegetation along thousands of miles of power lines.{{Cite web |date=2024-09-11 |title=Private power companies in Puerto Rico are under scrutiny as officials demand fewer outages |url=https://apnews.com/article/puerto-rico-power-outages-genera-luma-538a5314e5307f5dd424e9bdcf67f895 |access-date=2025-04-04 |website=AP News |language=en}} To improve resilience, the company installed more than 17,850 hurricane-resistant poles and upgraded over 1,800 poles and critical distribution breakers.{{Cite web |last=Gonzalez |first=Gloria |date=2021-12-25 |title=Puerto Rico’s shattered power grid could become a ‘big experiment’ for Biden |url=https://www.politico.com/news/2021/12/25/biden-puerto-rico-electricity-network-526102 |access-date=2025-04-04 |website=POLITICO |language=en}}

As part of broader grid modernization efforts, LUMA submitted 460 projects for Federal Emergency Management Agency (FEMA) funding, with 144 projects underway. FEMA has approved funding for eight major substation projects. LUMA plans to prioritize substation and transmission work, implement preventive maintenance, and inspect 51 key transmission segments in fiscal year 2025. The company also aims to clear vegetation along 16,000 miles of power lines over four years.

To enhance monitoring and efficiency, LUMA intends to add battery storage systems and replace 1.5 million electricity meters with smart meters over three years. In alignment with Puerto Rico’s energy policy, the company is developing nearly 1 GW of renewable energy and over 700 MW of storage, including nine renewable energy interconnection points. LUMA has connected solar systems for 12,000 customers, added 50 MW of renewable capacity, and introduced a resource map for solar development.

LUMA has overseen power restoration following severe weather events such as Hurricane Fiona in 2022 and Tropical Storm Ernesto in 2024.{{Cite news |last=Sullivan |first=Becky |date=2022-10-02 |title=More than 100,000 clients in Puerto Rico are still without power 2 weeks after Fiona |url=https://www.npr.org/2022/10/02/1126462352/puerto-rico-hurricane-fiona-luma-energy-power-outages |access-date=2025-04-04 |work=NPR |language=en}}{{Cite web |date=2024-08-20 |title=Tens of thousands remain without power in Puerto Rico, a week after tropical storm swiped the island |url=https://apnews.com/article/puerto-rico-power-outages-luma-storm-ernesto-1164e1d652235415b2817ef84173df8e |access-date=2025-04-04 |website=AP News |language=en}} The company has emphasized its ongoing efforts to improve grid reliability and has reached an agreement with the electrical workers’ union to support workforce development through technical training programs.

Registered on January 17, 2020, as LUMA Energy ManageCo, LLC, the company was renamed LUMA Energy, LLC on June 12, 2020. A joint venture between Quanta Services (USA) and ATCO (Canada), LUMA was created to manage Puerto Rico’s power grid.

The contract under which LUMA Energy operates the power grid in Puerto Rico was signed after a bid in 2020.{{Cite web|last1=Kaske|first1=Michelle|last2=Wyss|first2=Jim|date=2021-05-26|title=Puerto Rico's Wrecked Utility Goes Private in Bid to Save Island|url=https://www.bloomberg.com/news/articles/2021-05-26/puerto-rico-s-wrecked-utility-goes-private-in-bid-to-save-island|access-date=2021-06-10|website=Bloomberg}} In the bid, five different companies participated and only four submitted business proposals. The $1.5 billion contract is set to last for 15 years and can be renewed if both parties agree.

LUMA Energy officially became the new operator for Puerto Rico's power grid on June 1, 2021.{{Cite web|last=Rivera Clemente|first=Yaritza|date=2021-06-04|title=LUMA reconoce que sus plataformas digitales están abrumadas y no funcionan correctamente|trans-title=LUMA Acknowledges that their Digital Platforms Are Overwhelmed and Don't Work Correctly|url=https://www.elvocero.com/gobierno/luma-reconoce-que-sus-plataformas-digitales-est-n-abrumadas-y-no-funcionan-correctamente/article_194d6304-c4cb-11eb-b464-df919d17eb73.html|access-date=2021-06-10|website=El Vocero|language=es}} LUMA is in charge of operating the distribution and transmission infrastructure, although they do not own it, nor do they own or operate the power generation sector. The takeover happened as part of an agreement with Puerto Rico's Public-Private Partnership Agreement in an effort to overcome PREPA's bankruptcy.{{Cite news|last1=Nash|first1=Kim S.|last2=Rundle|first2=James|date=2021-06-11|title=Puerto Rico's Power Distributor Suffered a Cyberattack Hours Before a Devastating Fire|work=The Wall Street Journal|url=https://www.wsj.com/articles/puerto-ricos-power-distributor-suffered-a-cyberattack-hours-before-a-devastating-fire-11623453388|access-date=2021-06-14|issn=0099-9660}}

On June 1, 2022, LUMA Energy completed its first year of operations in Puerto Rico, reporting changes in customer service, reliability, and progress on FEMA-funded projects.{{Cite web |title=LUMA DESTACA SU COMPROMISO CON PUERTO RICO Y SU PROGRESO SIGNIFICATIVO DURANTE EL PRIMER AÑO DE OPERACIONES |url=https://lumapr.com/news/luma-destaca-su-compromiso-con-puerto-rico-y-su-progreso-significativo-durante-el-primer-ano-de-operaciones/ |access-date=2025-02-13 |website=Luma Energy |language=es-ES}} In November 2023, it hosted the IEEE Power and Energy Society conference in San Juan, the first time the event was held in Puerto Rico.{{Cite web |title=LUMA ANNOUNCES NEW OUTAGE REDUCTION & RESPONSE INITATIVE |url=https://lumapr.com/news/luma-announces-new-outage-reduction-response-initative/?lang=en |access-date=2025-02-13 |website=LUMA |language=en-US}}

In February 2025, LUMA announced plans to add nearly 1 GW of renewable energy and over 700 MW of storage, attracting $4 billion in private investment.{{Cite web |last=Walton |first=Robert |last2= |last3= |last4= |last5= |last6= |date=2025-02-06 |title=Puerto Rico utility LUMA plans to add 1 GW renewables, 700 MW storage |url=https://www.utilitydive.com/news/puerto-rico-utility-luma-1-gw-renewables-700-mw-storage/739402/ |access-date=2025-02-13 |website=Utility Dive |language=en-US}} That same month, the company reached an agreement with Linxon US LLC and AtkinsRéalis Caribe to build nine energy interconnection points, adding 990 MW of clean energy and 700 MW of storage to the grid.{{Cite web |title=LUMA to Add Over 990 MW of Clean Energy to Puerto Rico Grid {{!}} American Public Power Association |url=https://www.publicpower.org/periodical/article/luma-add-over-990-mw-clean-energy-puerto-rico-grid |access-date=2025-02-13 |website=www.publicpower.org}}

Despite these developments, LUMA continues to face challenges, including energy supply issues.{{Cite web |title=WeaveGrid Partners with LUMA Energy to Support Grid Resilience in Puerto Rico {{!}} WeaveGrid |url=https://www.weavegrid.com/news/weavegrid-partners-with-luma-energy-to-support-grid-resilience-in-puerto-rico |access-date=2025-02-13 |website=www.weavegrid.com |language=en}}

In 2022, a senior official with LUMA testified before a U.S. House oversight hearing investigating Puerto Rico's power grid development and its post-disaster reconstruction. Amid criticism by some officials in Puerto Rico, such as energy czar Josué Colón Ortiz, the LUMA official stated that since assuming responsibility in 2021, LUMA has worked to enhance reliability and resiliency despite inheriting a grid weakened by years of neglect. In her testimony, she described LUMA’s response to Hurricane Fiona, noting that power was restored to 90 percent of customers within 12 days. She credited the company’s emergency operations center, the mobilization of 1,300 field workers, and a $130 million inventory of materials for supporting rapid recovery efforts. Addressing electricity rates, Bahramirad stated that LUMA has never proposed an increase to the base rate for T&D operations, attributing past rate hikes to rising fuel costs managed by PREPA. She also outlined efforts to reduce outages through vegetation management, improved customer service, and faster response times."[https://www.congress.gov/117/chrg/CHRG-117hhrg49823/CHRG-117hhrg49823.pdf Puerto Rico’s Post-Disaster Reconstruction And Power Grid Development]". (2022-11-17) Oversight Hearing Before The Committee On Natural Resources, U.S. House Of Representatives. 117th Congress. Second Session. Retrieved 2025-03-01.

LUMA has advanced over 250 FEMA-funded infrastructure projects, representing more than $6 billion in federal investment, with 23 projects already under construction. The company is also collaborating with FEMA and other agencies to strengthen power generation.

On February 6, 2025, LUMA Energy announced plans to expand Puerto Rico’s electric grid with nearly 1 gigawatt (GW) of renewable energy and over 700 megawatts (MW) of energy storage. The project involves more than $4 billion in private investment and is expected to generate approximately 4,200 construction jobs and 139 permanent positions.{{Cite web |title=Puerto Rico utility LUMA plans to add 1 GW renewables, 700 MW storage {{!}} Utility Dive |url=https://www.utilitydive.com/news/puerto-rico-utility-luma-1-gw-renewables-700-mw-storage/739402/ |access-date=2025-04-08 |website=www.utilitydive.com |language=en-US}}

As part of Puerto Rico’s Tranche 1 renewable energy procurement, LUMA partnered with Linxon US to develop nine energy interconnection points to help integrate new renewable sources into the grid. The initiative supports Puerto Rico’s energy transition goals, including ending coal-fired electricity generation by 2028 and achieving a fully renewable energy grid by 2050.

Since taking over grid operations, LUMA has connected solar panel systems for 12,000 customers, adding 50 MW of solar capacity to the system.{{Cite web |last=Gonzalez |first=Gloria |date=2021-12-25 |title=Puerto Rico’s shattered power grid could become a ‘big experiment’ for Biden |url=https://www.politico.com/news/2021/12/25/biden-puerto-rico-electricity-network-526102 |access-date=2025-04-08 |website=POLITICO |language=en}}

LUMA Energy has undertaken several initiatives to improve Puerto Rico’s electrical grid. The company has replaced over 17,000 utility poles and cleared vegetation along approximately 4,800 miles (7,700 kilometers) of power lines and related infrastructure.{{Cite web |date=2024-09-11 |title=Private power companies in Puerto Rico are under scrutiny as officials demand fewer outages |url=https://apnews.com/article/puerto-rico-power-outages-genera-luma-538a5314e5307f5dd424e9bdcf67f895 |access-date=2025-04-08 |website=AP News |language=en}} It has also added thousands of automation devices as part of its grid modernization efforts.{{Cite web |date=2024-12-31 |title=What to know about Luma Energy, the company involved in Puerto Rico's massive blackout - CBS News |url=https://www.cbsnews.com/news/puerto-rico-power-outage-blackout-luma-energy/ |access-date=2025-04-08 |website=www.cbsnews.com |language=en-US}}

In fiscal year 2025, LUMA plans to inspect 51 line segments identified as contributing to a significant portion of transmission-related outages. Over the next four years, it aims to clear vegetation from 16,000 miles (25,700 kilometers) of power lines. Of the 460 grid reconstruction projects submitted to the Federal Emergency Management Agency (FEMA), 144 are currently under construction.

LUMA intends to install additional battery energy storage systems and replace 1.5 million meters with smart meters within three years to improve detection of power losses. On February 6, 2025, the company announced plans to add nearly 1 gigawatt of renewable energy and over 700 megawatts of energy storage to enhance grid reliability.{{Cite web |title=Puerto Rico utility LUMA plans to add 1 GW renewables, 700 MW storage {{!}} Utility Dive |url=https://www.utilitydive.com/news/puerto-rico-utility-luma-1-gw-renewables-700-mw-storage/739402/ |access-date=2025-04-08 |website=www.utilitydive.com |language=en-US}} An agreement is in place to develop nine interconnection points to support renewable energy integration.

Despite these efforts, outages persist. In December 2024, a blackout affected over 1.2 million residents.{{Cite web |title=Puerto Rico Profile |url=https://www.eia.gov/state/print.php?sid=RQ |archive-url=http://web.archive.org/web/20250316200156/https://www.eia.gov/state/print.php?sid=RQ |archive-date=2025-03-16 |access-date=2025-04-08 |website=www.eia.gov |language=en}} Following Hurricane Fiona in September 2022, over 100,000 customers remained without power for two weeks. By October 2, 2022, LUMA reported restoring service to about 1.34 million customers.{{Cite news |last=Sullivan |first=Becky |date=2022-10-02 |title=More than 100,000 clients in Puerto Rico are still without power 2 weeks after Fiona |url=https://www.npr.org/2022/10/02/1126462352/puerto-rico-hurricane-fiona-luma-energy-power-outages |access-date=2025-04-08 |work=NPR |language=en}} After Tropical Storm Ernesto in August 2024, tens of thousands were still without power a week later, though officials stated that 96% of the population had service within three days.{{Cite web |date=2024-08-20 |title=Tens of thousands remain without power in Puerto Rico, a week after tropical storm swiped the island |url=https://apnews.com/article/puerto-rico-power-outages-luma-storm-ernesto-1164e1d652235415b2817ef84173df8e |access-date=2025-04-08 |website=AP News |language=en}}

LUMA executives have acknowledged ongoing challenges, with a high rate of critical failures reported. CEO Juan Saca stated that over 95% of customers had continuous service more than 98% of the time, when power generation was available.

On June 10, 2021, a fire at the Monacillos substation in Río Piedras triggered widespread power outages across Puerto Rico.{{Cite web |last=El Vocero |date=2021-06-10 |title=Un incendio causa un apagón masivo en la Isla y LUMA dice que la luz volverá hacia las 10 de la noche |trans-title=A Fire Causes Massive Blackout in the Island and LUMA Says Service Will Be Restored Around 10 PM |url=https://www.elvocero.com/gobierno/un-incendio-causa-un-apag-n-masivo-en-la-isla-y-luma-dice-que-la/article_baba59a8-ca3a-11eb-8027-9379f9c85bad.html |access-date=2021-06-10 |website=El Vocero |language=es}} The incident occurred shortly after LUMA Energy took over the island’s power transmission and distribution system. According to the company, a transformer caught fire, activating protective systems and initially leaving between 700,000 and 800,000 customers without electricity.{{Cite web |date=2021-06-11 |title=Incendio en Monacillos deja a 700,000 abonados sin luz |url=https://www.primerahora.com/noticias/puerto-rico/notas/incendio-en-monacillos-deja-a-700000-abonados-sin-luz/ |access-date=2025-02-25 |website=Primera Hora |language=es}} Investigations by state and federal authorities began shortly after the event, with preliminary findings indicating faulty equipment as a possible cause.{{Cite web |last=Figueroa Rosa |first=Bárbara J. |date=2021-06-10 |title=FBI entra a escena de explosión en Monacillos a fin de determinar si hubo algún tipo de acto criminal |trans-title=FBI Enters Scene of Monacillos Explosion to Determine if Criminal Acts Occurred |url=https://www.primerahora.com/noticias/gobierno-politica/notas/fbi-entra-a-escena-de-explosion-en-monacillos-a-fin-de-determinar-si-hubo-algun-tipo-de-acto-criminal/ |access-date=2021-06-10 |website=Primera Hora |language=es}} Police and fire officials later ruled out foul play, suggesting that inadequate maintenance may have contributed to the fire.{{Cite web |last=Univisión |date=2021-06-30 |title=Negociado de la Policía de Puerto Rico determinó el motivo del incendio de Monacillos |trans-title=Police Bureau of Puerto Rico Determines Cause of Monacillos Fire |url=https://www.univision.com/local/puerto-rico-wlii/negociado-de-la-policia-de-puerto-rico-determino-cual-fue-el-motivo-del-incendio-de-monacillos-luma-energy |access-date=2021-07-06 |website=Univision Puerto Rico |language=es}}

The outage happened amid heightened public scrutiny of LUMA Energy.{{Cite web |last=Coto |first=Dánica |date=2021-06-17 |title=Power outage hits 337K in Puerto Rico amid growing outrage |url=https://apnews.com/article/caribbean-puerto-rico-power-outages-business-9894e9679ef144acb08973e199b8b73a |access-date=2021-06-18 |website=Associated Press |location=San Juan, Puerto Rico}} Critics questioned the company’s readiness and response, while LUMA pointed to longstanding weaknesses in the power infrastructure. Around the same time, the company’s digital systems experienced a cyberattack, which may have disrupted customer access to account information.

LUMA Energy’s contract with Puerto Rico sparked controversy due to secrecy and lack of public input.{{Cite web |last=Foehringer Merchant |first=Emma |date=2020-06-25 |title=Puerto Rico Selects New Grid Manager, Prompting Concerns |url=https://www.greentechmedia.com/articles/read/puerto-rico-selects-new-grid-manager-concern-follows |access-date=2021-06-10 |website=Greentech Media}} It grants LUMA control over key utilities,{{Cite web |last=Rodríguez Grafal |first=Jason |date=2020-07-01 |title=Contrato permite a LUMA Energy controlar $18 mil millones de reconstrucción |trans-title=Contract Allows LUMA Energy to Control $18 Billion in Reconstruction |url=https://www.periodicolaperla.com/contrato-permite-a-luma-energy-controlar-18-mil-millones-de-reconstruccion/ |access-date=2021-06-10 |website=La Perla del Sur |language=es}} allows contract dissolution with 120 days’ notice, and includes broad termination clauses for disasters, war, sabotage, and civil unrest.{{Cite web |last=Univision |date=2021-03-18 |title=¿Qué razones pueden terminar el contrato de Luma Energy y dejar a Puerto Rico sin sistema eléctrico? |trans-title=What Circumstances Could Cause LUMA Energy Contract Dissolution and Leave Puerto Rico without a Power Grid? |url=https://www.univision.com/local/puerto-rico-wlii/razones-luma-energy-irse-puerto-rico-contrato |access-date=2021-06-10 |website=Univision |language=es}}

LUMA Energy sought immunity from liability, including for negligence or willful harm, but the request was denied.{{Cite web |date=2021-05-25 |title=Hasta en caso de muertes; LUMA Energy pide relevo de responsabilidad |trans-title=Even in the Event of Deaths; LUMA Energy Requests Limitations on Liability |url=https://www.telemundopr.com/noticias/puerto-rico/hasta-en-caso-de-muertes-luma-energy-pide-relevo-de-responsabilidad/2217906/ |access-date=2021-06-10 |website=WKAQ-TV |language=es}}{{Cite web |last=Serrano |first=Oscar J. |date=2021-05-26 |title=LUMA quiere el poder de hacer apagones selectivos sin responderle a los clientes |trans-title=LUMA Wants the Power to Make Selective Blackouts Without Responding to Clients |url=https://www.noticel.com/gobierno/ahora/top-stories/20210526/luma-quiere-el-poder-de-hacer-apagones-selectivos-sin-responderle-a-los-clientes/ |access-date=2021-06-22 |website=NotiCel |language=es}} Instead, NEPR upheld a liability clause similar to PREPA’s.{{Cite web |last=El Vocero |date=2021-05-31 |title=Negociado de Energía rechaza petición de LUMA para un relevo de responsabilidad total |trans-title=Energy Bureau Rejects LUMA's Request for Total Limitation of Liability |url=https://www.elvocero.com/gobierno/negociado-de-energ-a-rechaza-petici-n-de-luma-para-un-relevo-de-responsabilidad-total/article_81ccf86c-c27e-11eb-971f-0711efd151db.html |access-date=2021-06-10 |website=El Vocero |language=es}} The OIPC argued LUMA should use insurance to cover costs, while LUMA’s president claimed the request aimed to protect customers.{{Cite web |last=Rivera Clemente |first=Yaritza |date=2021-05-26 |title=El presidente de LUMA Energy asegura que el relevo de responsabilidad siempre estuvo en el contrato |trans-title=LUMA Energy President Asserts that Limited Liability Clause Was Always Part of the Contract |url=https://www.elvocero.com/gobierno/el-presidente-de-luma-energy-asegura-que-el-relevo-de-responsabilidad-siempre-estuvo-en-el/article_9c032edc-be77-11eb-a022-4f75f539e3a2.html |access-date=2021-06-10 |website=El Vocero |language=es}}

In October 2024, the Special Commission of the Puerto Rico Bar concluded that the contract, between the two agreements, violated fundamental legal principles, but also contributed to worsening the energy situation of Puerto Rico. The Special Commission of the Puerto Rico Bar recommends, a Litigation in nullity, or Resolution according to the contractual terms.{{Cite web|last=Et! Boricua|date=2024-10-29|title=Comisión del Colegio de Abogado(a)s concluye que los contratos de LUMA y Genera PR son nulos|trans-title=Commission of the College of Attorney(a) concludes that the contracts of LUMA and Genera PR are null|url=https://eyboricua.com/noticias/puerto-rico/comision-del-colegio-de-abogadoas-concluye-que-los-contratos-de-luma-y-genera-pr-son-nulos/|access-date=2024-10-31|website=eyboricua.com|publisher=Ey! Boricua|language=es}}

LUMA Energy reported sabotage, vandalism,[36][37][38][39] and a DDoS attack affecting its services.{{Cite news |last=El Nuevo Día |date=2021-06-10 |title=LUMA Energy denuncia presunto ataque a portal de clientes y aplicación móvil |trans-title=LUMA Energy Alleges Cyberattack Targeting Customer Service Portal and Mobile Application |url=https://www.elnuevodia.com/noticias/locales/notas/luma-energy-denuncia-presunto-ataque-a-portal-de-clientes-y-aplicacion-movil/ |access-date=2021-06-10 |work=El Nuevo Día |language=es}}{{Cite web |last=Coto |first=Dánica |date=2021-06-10 |title=Fire at power plant leaves many in Puerto Rico in the dark |url=https://www.nydailynews.com/news/ny-puerto-rico-blackout-20210610-lr3px6fk5ndvpaqjvoahjqvlc4-story.html |access-date=2021-06-10 |website=Daily News}} A substation fire was filmed and suspected as sabotage. Representative Jorge Navarro called for an investigation.{{Cite web |last=NotiUno |date=2021-06-09 |title=Solicitan investigar si recientes apagones son producto de sabotajes en la red eléctrica |trans-title=Request to Investigate if Recent Power Outages Are a Product of Power Grid Sabotage |url=https://www.notiuno.com/noticias/gobierno-y-politica/solicitan-investigar-si-recientes-apagones-son-producto-de-sabotajes-en-la-red-el-ctrica/article_463c7bfc-c91c-11eb-935d-6f8de68c411b.html |access-date=2021-06-10 |website=NotiUno |language=es}} On June 15, 2021, LUMA warned of scammers posing as employees to collect payments fraudulently.{{Cite web |last=Newsroom |date=2021-06-15 |title=LUMA Alerts Customers to Phone Fraud |url=https://www.theweeklyjournal.com/business/luma-alerts-customers-to-phone-fraud/article_b38779b8-ce13-11eb-9f27-d7cd091705b0.html |access-date=2021-06-15 |website=The Weekly Journal |publisher=El Vocero}}{{Cite web |last=NotiCel |date=2021-06-15 |title=LUMA Energy alerta sobre fraude telefónico y por correo electrónico |trans-title=LUMA Energy Warns Against Fraud by Phone and Email |url=https://www.noticel.com/ahora/gobierno/top-stories/20210615/luma-energy-alerta-sobre-fraude-telefonico-y-por-correo-electronico/ |access-date=2021-06-15 |website=NotiCel |language=es}}

LUMA launched a new online platform, but service failures followed. The company attributed the issues to excessive traffic, later citing a suspected DDoS attack that generated up to 2 million visits per second. The incident was under investigation as of June 2021.

Following LUMA Energy’s takeover, protests erupted across Puerto Rico, involving former workers, UTIER, allied groups, and the public. Protestors sometimes blocked LUMA premises,{{Cite web |last=Cybernews |date=2021-06-07 |title=Explotan gomas a 8 vehículos de LUMA Energy en Utuado |trans-title=Slashed Tires on 8 LUMA Energy Vehicles in Utuado |url=https://www.metro.pr/pr/noticias/2021/06/07/explotan-gomas-8-vehiculos-luma-energy-utuado.html |access-date=2021-06-10 |website=Metro PR |publisher=Metro International |language=es}} leading the company to sue UTIER and others on June 2, 2021, seeking to prevent intimidation and disruption.{{Cite web |date=2021-06-02 |title=LUMA demanda a la UTIER por bloqueo de acceso a instalaciones eléctricas |trans-title=LUMA Sues UTIER for Blocking Access to Electrical Power Establishments |url=https://www.telemundopr.com/noticias/puerto-rico/luma-demanda-a-la-utier-por-bloqueo-de-acceso-a-instalaciones-electricas/2221074/ |access-date=2021-06-10 |website=WKAQ-TV |language=es}}{{Cite web |last=González |first=Joanisabel |date=2021-06-02 |title=LUMA Energy demanda a la UTIER y reclama acceso a instalaciones |trans-title=LUMA Energy Sues UTIER and Reclaims Access to Facilities |url=https://www.elnuevodia.com/noticias/locales/notas/luma-energy-demanda-a-la-utier-y-reclama-acceso-a-instalaciones/ |access-date=2021-06-14 |website=El Nuevo Día |language=es}} A court order on June 4 temporarily barred UTIER from blocking facilities but upheld free speech rights.{{Cite web |last=Rosario |first=Frances |date=2021-06-04 |title=Manifestantes de la Utier no podrán impedir la labor de LUMA Energy |trans-title=UTIER Protestors Will Not Be Allowed to Impede LUMA Energy Labor |url=https://www.primerahora.com/noticias/gobierno-politica/notas/manifestantes-de-la-utier-no-podran-impedir-la-labor-de-luma-energy/ |access-date=2021-06-14 |website=Primera Hora |language=es}} The case was dismissed on June 18 due to insufficient evidence.{{Cite web |last=Metro PR |date=2021-06-18 |title=Juez superior archiva demanda de LUMA Energy contra la UTIER |trans-title=Superior Court Judge Archives LUMA Energy v. UTIER Case |url=https://www.metro.pr/pr/noticias/2021/06/18/juez-superior-archiva-demanda-luma-energy-la-utier.html |access-date=2021-07-06 |website=Metro PR |publisher=Metro International |language=es}} Protests continued at LUMA sites, with employees physically blocked by demonstrators in multiple cities.

Since LUMA’s takeover on June 1, 2021, customers reported power surges damaging appliances. Voltage irregularities caused fires in two San Sebastián homes, prompting evacuations and repairs.{{Cite web |date=2021-06-15 |title=Impresionantes imágenes: fuego en dos residencias de San Sebastián por "cambio drástico" de voltaje |trans-title=Shocking Images: Two San Sebastián Residences on Fire Caused by "Extreme Fluctuations" in Voltage |url=https://www.telemundopr.com/noticias/puerto-rico/sin-luz-zona-urbana-de-san-sebastian-por-averia-en-subestacion-de-ese-municipio-2225446-4/2225446/ |access-date=2021-06-17 |website=WKAQ-TV |publisher=NBC Universal Media |language=es}} Privatization may increase costs,[50] despite already high rates.{{Cite web |last=Acevedo |first=Nicole |date=2019-05-10 |title=Puerto Ricans already pay high energy prices. They could go higher. |url=https://www.nbcnews.com/news/latino/puerto-ricans-already-pay-high-energy-prices-it-could-get-n1003971 |access-date=2021-06-12 |website=NBC News}}{{Cite web |last=United States Energy Information Administration |author-link=United States Energy Information Administration |date=2020-11-19 |title=Puerto Rico Profile |url=https://www.eia.gov/state/print.php?sid=RQ |access-date=2021-06-12 |website=www.eia.gov}} Rising costs are especially concerning given Puerto Rico’s declining economy and high poverty rates.{{Cite web |last=Metro PR |date=2021-05-01 |title=Conmemoran el Día de los Trabajadores exigiendo la cancelación del contrato de LUMA |trans-title=Workers Commemorate International Workers' Day Demanding Cancellation of LUMA Contract |url=https://www.metro.pr/pr/noticias/2021/05/01/conmemoran-dia-los-trabajadores-exigiendo-la-cancelacion-del-contrato-luma.html |access-date=2021-06-14 |website=Metro PR |publisher=Metro International |language=es}}

In November 2024, Puerto Rico’s Court of Appeals ruled against LUMA Energy, upholding NEPR’s performance measurement system, which LUMA claimed violated its right to bonuses.{{Cite web |date=2024-11-09 |title=Tribunal Apelativo decide en contra de LUMA Energy en caso de bonificaciones económicas por desempeño |url=https://www.elnuevodia.com/noticias/locales/notas/tribunal-apelativo-decide-en-contra-de-luma-energy-en-caso-de-bonificaciones-economicas-por-desempeno/ |access-date=2024-11-09 |website=El Nuevo Dia |language=es}} Protestors questioned whether LUMA would modernize the grid, but its president, Wayne Stensby, stated plans to incorporate renewable energy, though only 2.5% of Puerto Rico’s power came from renewables as of 2020.{{Cite web |title=Autoridad de Energía Eléctrica Compra de Combustible |url=https://aeepr.com/es-pr/Paginas/Compra-de-Combustible.aspx |access-date=2023-05-29 |website=aeepr.com}}

LUMA faced criticism for inadequate staffing and long service delays. Customers reported three-hour phone wait times, broken web platforms, and slow power restoration—averaging 333 minutes under LUMA versus 155 under PREPA.[68] Due to poor service, several municipalities declared emergencies in June 2021, hiring private contractors for repairs.{{Cite web |last=CyberNews |date=2021-06-13 |title=Varios alcaldes decretan estado de emergencia por problemas con el servicio eléctrico |trans-title=Several Mayors Decree State of Emergency Due to Electrical Service Problems |url=https://www.telemundopr.com/noticias/puerto-rico/varios-alcaldes-decretan-estado-de-emergencia-por-problemas-con-el-servicio-electrico/2224890/ |access-date=2021-06-17 |website=WKAQ-TV |publisher=NBCUniversal |language=es}} Some mayors also provided aid for food and medication spoilage.

Lawmakers demanded improvements. Representative Luis Raúl Torres urged a 30-day deadline for LUMA to fix deficiencies or face contract termination.{{Cite web |last=Guillama Capella |first=Manuel |date=2021-06-21 |title=Representante denuncia incumplimiento de contrato de Luma Energy por falta de empleados |trans-title=Representative Denounces Breach of Contract by LUMA Energy Due to Lack of Employees |url=https://www.metro.pr/pr/noticias/2021/06/21/representante-denuncia-incumplimiento-contrato-luma-energy-falta-empleados.html |access-date=2021-06-22 |website=Metro PR |publisher=Metro International |language=es}} LUMA, with 2,200 employees instead of the 3,800 needed, pledged to improve service. Complaints also arose over estimated bills, leading LUMA to request customer-submitted meter photos and plan upgrades for remote readings.{{Cite web |last=Correa Velázquez |first=Melissa |date=2021-07-02 |title=EL VOCERO en el Call Center de LUMA: prometen responder las llamadas en menos de cinco minutos |trans-title=EL VOCERO at LUMA Call Center: Promises to Respond to Callers in Less than Five Minutes |url=https://www.elvocero.com/gobierno/agencias/el-vocero-en-el-call-center-de-luma-prometen-responder-las-llamadas-en-menos-de/article_31019a84-db6d-11eb-a408-67e9357c3ffb.html |access-date=2021-07-06 |website=El Vocero |language=es}}{{Cite web |last=Metro PR |date=2021-06-25 |title=LUMA pide a los clientes someter lecturas de sus contadores |trans-title=LUMA Asks Clients to Submit Power Meter Readings |url=https://www.metro.pr/pr/noticias/2021/06/25/luma-pide-los-clientes-someter-lecturas-contadores.html |access-date=2021-07-06 |website=Metro PR |publisher=Metro International |language=es}} LUMA also aimed to reduce call wait times to under five minutes by August 2021 through expanded staffing.

Critics have expressed concern about LUMA Energy’s preparedness for severe weather events. Puerto Rico, located in the Caribbean, is prone to tropical storms and hurricanes. Following Hurricane María in 2017—which caused widespread damage to the electrical grid and led to prolonged power outages lasting up to a year—some protestors questioned the timing of LUMA’s takeover in June, coinciding with the start of hurricane season. These concerns have contributed to calls for a transition to renewable energy and a distributed grid model, which some view as incompatible with the privatization of the power utility.

PREPA workers protested the takeover citing concerns over their rights. One of their main concerns was job security, since the contract with LUMA would force them to reapply for their job under the new company. Workers were concerned that they would be forced to work for other agencies and the company would favor new, inexperienced hires from their companies in the United States, Canada, and Puerto Rico, and that this would be happening at a critical time since June is the beginning of the Atlantic hurricane season. The UTIER, a local trade union, claimed that the contract potentially violates local labor laws. Workers not hired by LUMA were set to become public workers in other agencies, which was in itself a concern due to uncertainty regarding availability of funding for their salaries. Workers were also concerned about their retirement funds.{{Cite web |last=Pagán |first=José Karlo |date=2021-05-18 |title=Empleados de la AEE se manifiestan contra LUMA en el Tribunal federal y en la sede de la Junta |trans-title=PRASA Employees Protest Against LUMA at Federal Courthouse and Fiscal Oversight Management Board Headquarters |url=https://www.primerahora.com/noticias/puerto-rico/notas/empleados-de-la-aee-se-manifiestan-contra-luma-en-el-tribunal-federal-y-en-la-sede-de-la-junta/ |access-date=2021-06-12 |website=Primera Hora |language=es}}

On June 14, 2021, LUMA Energy confirmed via press release that UITICE (Insular Union of Industrial Workers and Electrical Constructions, Spanish: Unión Insular de Trabajadores Industriales y Construcciones Eléctricas) would exclusively be the new trade union representing LUMA electricity workers.{{Cite web|last=NotiCel|date=2021-06-14|title=UITICE representará a empleados de LUMA Energy|trans-title=UITICE to Represent LUMA Energy Employees|url=https://www.noticel.com/ahora/20210614/uitice-representara-a-empleados-de-luma-energy/|access-date=2021-06-14|website=NotiCel|language=es}} UTIER president Ángel Figueroa Jaramillo reacted to this saying that the process was not democratic because no elections were held, leaving the choice at the hands of LUMA Energy only, and that it represented "a clear conspiracy between LUMA Energy and UITICE president Héctor Reyes against protecting workers' rights."{{Cite web|last=CyberNews|date=2021-06-14|title=Presidente de la UTIER dice que no le sorprende la selección de UITICE como representación sindical en LUMA Energy|trans-title=UTIER President Says He Is Not Surprised by Selection of UITICE as Union Representative for LUMA Energy|url=http://www.periodicolaperla.com/presidente-de-la-utier-dice-que-no-le-sorprende-la-seleccion-de-uitice-como-representacion-sindical-en-luma-energy/|access-date=2021-06-14|website=La Perla del Sur|language=es|publication-place=San Juan, Puerto Rico}} Figueroa Jaramillo expressed concerns over whether or not this could mean that UITICE would be unable to properly oversee LUMA Energy and protect workers' rights due to potential conflict of interest with the company. He also reassured workers that UTIER "is still alive and will be creating an organization to group former AEE employees that have moved to other agencies", and that they plan to keep fighting the LUMA contract "that would raise energy rates and provide no power grid improvements, as demonstrated."

Following LUMA’s takeover, Puerto Rico experienced widespread power outages, prompting emergency declarations by multiple mayors. LUMA cited preexisting grid damage, weather, and possible sabotage as causes. Reports indicate that in June 2021, outages affected up to 1 million customers, including 40,000 who lost water service after the Monacillos fire.{{Cite web |last=Alvarado León |first=Gerardo E. |date=2021-06-09 |title=LUMA Energy da sus razones para las fallas en la red eléctrica |trans-title=LUMA Energy Gives Reasons for Power Grid Failures |url=https://www.elnuevodia.com/noticias/locales/notas/luma-energy-da-sus-razones-para-las-fallas-en-la-red-electrica/ |access-date=2021-06-10 |website=El Nuevo Día |language=es}} Meanwhile, the Association of Hospitals (Spanish: Asociación de Hospitales) warned on June 17, 2021, that the power outages put patients’ lives at risk and that the power outage crisis needed to be resolved immediately, regardless of the cause.{{Cite web |date=2021-06-17 |title=Asociación de Hospitales advierte constantes apagones amenazan la vida de pacientes |trans-title=Association of Hospitals Warns Constant Blackouts Threaten Patients' Lives |url=https://www.metro.pr/pr/noticias/2021/06/17/asociacion-de-hospitales-advierte-constantes-apagones-amenazan-la-vida-de-pacientes.html |access-date=2021-06-22 |website=Metro PR |publisher=Metro International |language=es}}

On Wednesday, June 16, 2021, a massive power outage left more than 337,000 clients without electricity after three units went offline unexpectedly.{{Cite web |last=Rivera |first=Rafy |date=2021-06-17 |title=Nuevo apagón en Puerto Rico afecta a más de 300.000 clientes |trans-title=New Power Outage in Puerto Rico Affects More than 300,000 Clients |url=https://cnnespanol.cnn.com/2021/06/17/apagon-puerto-rico-luma-energy-orix/ |access-date=2021-06-17 |website=CNN |language=es}} The reason for the units' failure was unknown as of June 17, 2021. Hours prior to the incident, LUMA Energy had stated it would be selectively shutting down systems to give them maintenance and due to insufficient power generation capacity, but that this sudden outage was unrelated and not intentional.

On Monday, June 21, 2021, a problem with unit #5 at the Central de San Juan power generation station caused a power relay failure, leaving 45,349 customers without electrical service, most of them in the Ponce area.{{Cite web |date=2021-06-21 |title=Miles sin energía por evento en unidad de Central San Juan |trans-title=Thousands Without Power Service Due to Problem at Central de San Juan Unit |url=https://www.metro.pr/pr/noticias/2021/06/21/miles-sin-energia-por-evento-en-unidad-de-central-san-juan.html |access-date=2021-06-22 |website=Metro PR |publisher=Metro International |language=es}}

The power outage crisis caused one of the island's major shopping centers, Plaza del Caribe in Ponce, to close on June 22, 2021, due to a blackout.{{Cite web |date=2021-06-22 |title=Cerrado "temporeramente" Plaza del Caribe por falta de luz |trans-title=Plaza del Caribe "Temporarily" Closed Due to Blackouts |url=https://www.elvocero.com/economia/otros/cerrado-temporeramente-plaza-del-caribe-por-falta-de-luz/article_aea85efa-d370-11eb-928f-c70a3700a5ca.html |access-date=2021-06-22 |website=El Vocero |language=es}}{{Cite web |last=Díaz |first=Marian |date=2021-06-22 |title=Cierran Plaza del Caribe por falta de energía eléctrica |trans-title=Plaza del Caribe Closes Due to Power Blackout |url=https://www.elnuevodia.com/negocios/empresas-comercios/notas/cerrado-plaza-del-caribe-por-falta-de-energia-electrica/ |access-date=2021-06-22 |website=El Nuevo Día |language=es}}

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{{Energy in Puerto Rico}}

Category:Electric power companies of Puerto Rico

Category:American companies established in 2020

Category:2020 establishments in Puerto Rico

Category:Energy companies established in 2020