POLITICO Energy Puerto Rico’s power crisis deepens after Trump board firings
Aug 8, 2025
Gloria Gonzalez, the Deputy Energy Editor for POLITICO, sheds light on the turmoil in Puerto Rico following the removal of key financial oversight board members by President Trump. She discusses the implications for the island's energy future and the ongoing battle with Wall Street bondholders over utility debt. The shake-up raises concerns about rising electricity rates and the reconstruction of Puerto Rico's energy system, which has been crippled since Hurricane Maria. The political landscape adds another layer of complexity in these precarious negotiations.
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Oversight Board's Crucial Role
- Puerto Rico's Financial Oversight Board was created to address a $72 billion bankruptcy and has managed to settle much of the debt.
- The core dispute now centers on PREPA's $12 billion debt and its impact on electricity rates, causing major financial strain.
Political Divide Over Debt Fight
- Democrats defend the Oversight Board as the last barrier against predatory bondholders.
- Bondholders insist on full repayment, even if it means higher electricity rates for Puerto Ricans.
Board Shakeup Risks Energy Future
- Trump's firing of board members likely leads to appointees favoring bondholders.
- This risks massive electricity rate hikes and delays rebuilding Puerto Rico's energy system after Hurricane Maria.