Puerto Rico Gets $3.5 Billion Plan to Fix Teetering Utility
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A joint venture including two U.S.-based energy companies is proposing a $3.5 billion plan to modernize Puerto Rico’s cash-strapped power utility, which may be pushed to default on its debt.
York Capital Management LP, which manages about $26 billion, and energy firms NRG Energy Inc. and ITC Holdings Corp. are offering to build natural-gas generators on the island through their consortium, Puerto Rico New Generation Partners. In return, the junk-rated power authority, called Prepa, would agree to purchase electricity from the group for 30 years, Thomas Atkins, senior director at NRG Energy said in a telephone interview.