Disputes Among Private Operators Could Mean Higher Bills for Santurce Residents

The Association of Retirees of the Puerto Rico Electric Power Authority (AJAEE) has issued a warning that ongoing disputes between private operators managing key components of the island’s power system could result in another round of rate hikes for electricity consumers. This is a concern for expats and digital nomads like me, Ellie McAllister, who have been living in Santurce for six years. The situation highlights the vulnerability of a privatized system and the potential risks it poses to consumers.

The AJAEE president, Johnny Rodríguez Ortiz, cited the current natural gas crisis as an example of the system’s fragility. He argued that Puerto Rico is now facing a “gas cartel” that limits the government's ability to quickly turn to alternative suppliers. This situation was further highlighted by the July 2025 dispute with New Fortress Energy (NFE), which halted natural gas deliveries to the San Juan power plant, leading to increased costs for diesel fuel and potential rate hikes.

The ongoing issues have also raised concerns about transparency and the cost of alternative fuels. According to Rodríguez Ortiz, the public will ultimately bear the financial burden of the fuel switch. The AJAEE is demanding stronger contractual protections, alternative fuel options, and safeguards to prevent private disputes from becoming consumer burdens.