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prima:LUMA Energy contract faces Supreme Court review: what if it’s invalidated?

The Fiscal Oversight Board’s intervention, the short transition period, and the process of finding a replacement operator or returning the grid to PREPA raise questions

September 21, 2026 - 11:09 AM

The lawsuits filed in December 2025—one by González and another by PREPA and the Puerto Rico Public-Private Partnerships Authority (P3 Authority)—returned to the state court system after Swain rejected arguments by LUMA, the FOMB and groups of bondholders seeking to have the federal court assume jurisdiction. (Carlos Rivera Giusti/GFR Media)

By including a temporary return to the Puerto Rico Electric Power Authority (PREPA) among the alternatives presented to the Puerto Rico Supreme Court in the event that it issues a ruling invalidating LUMA Energy’s contract, the administration of Jenniffer González may have opened the door for the Fiscal Oversight and Management Board (FOMB) to re-enter the dispute, under its authority to enforce the fiscal plan, which requires a private entity to operate the electric transmission and distribution system.

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