Puerto Rico Court Win Strengthens Governor’s Hand
- Island’s federal overseers must share power, judge rules
- Ruling may boost power of government in bankrutpcy case
Puerto Rico Electric Power Authority (PREPA) employees fix power lines in Santurce, San Juan, Puerto Rico, on Oct. 19.
Photographer: Xavier Garcia/BloombergThis article is for subscribers only.
Puerto Rico’s governor won a decisive court victory that could boost his role in shaping the island’s financial recovery as he seeks $94 billion in federal aid to pay for the devastating damage dealt by the September hurricane.
A federal judge struck down a request by the U.S. board that oversees the island’s finances to appoint its own manager to turnaround Puerto Rico’s bankrupt electric utility. Governor Ricardo Rossello had opposed the move, saying it encroached upon the authority of elected officials and was beyond the scope of the power given to the panel in an emergency rescue law enacted last year.