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Puerto Rico Moves Toward Retaining Embattled Luma to Run Power Grid

  • Oversight board vote is first of three approvals company needs
  • Governor says firm has best chance to upgrade electric system
The Puerto Rico Electric Power Authority (Prepa) Palo Seco Power Plant in San Juan, Puerto Rico.

The Puerto Rico Electric Power Authority (Prepa) Palo Seco Power Plant in San Juan, Puerto Rico.

Photographer: Jonathan Alpeyrie/Bloomberg

Luma Energy won approval from Puerto Rico’s financial oversight board for a contract extension to run the island’s government-owned power grid amid criticism that the historically fragile electric system remains unreliable.

The federally-appointed board signed off on continuing with the US-Canadian consortium, even after some lawmakers tried to end the contract and residents protested against high electricity charges and prolonged blackouts.