SAN JUAN — Luma Energy, the private consortium responsible for Puerto Rico’s electricity transmission and distribution system, filed a countersuit against the Puerto Rican government on Tuesday, escalating a legal dispute over the future of the company’s operating contract, according to court filings and statements from both sides.
The countersuit follows a lawsuit filed by the government about six months ago seeking to invalidate and ultimately terminate Luma’s contract. Governor Jenniffer González has repeatedly pledged to end the agreement, arguing that the island’s electrical system has not improved as promised under the company’s management.
In its filing, Luma accused the government of acting “in bad faith and with intentional malice to the detriment of the public interest.” The company also alleged that officials were using governmental authority “to illegally try to fulfill a campaign promise,” according to the court documents cited by the company.
The government’s earlier lawsuit was part of a broader effort to challenge contract extensions and arrangements related to Luma’s operation of the power grid. Puerto Rican officials have argued that service reliability, infrastructure reconstruction and overall system performance have not met expectations. Governor González said when the original lawsuit was filed that the electrical system had not improved with the “speed, consistency or effectiveness” that had been promised.
Luma, a consortium formed by Canadian utility company Atco and U.S.-based Quanta Services, assumed responsibility for Puerto Rico’s transmission and distribution network in 2021. The company has maintained that it inherited an aging system that had suffered from years of underinvestment and extensive damage following Hurricane Maria in 2017.
The dispute comes as Puerto Rico continues to face challenges related to electricity reliability and the financial condition of the Puerto Rico Electric Power Authority, which remains in bankruptcy proceedings involving more than $9 billion in debt, according to court and government records.
Luma said in its countersuit that it would be entitled to significant compensation if its contract were terminated. The company asserted that damages could amount to at least $4.5 billion under the terms of its agreements.
A spokesperson for Puerto Rico’s Justice Department did not immediately respond to requests for comment following the filing, according to reports. Details regarding the government’s formal response to the countersuit remain unclear. The legal proceedings are expected to continue in Puerto Rico’s courts after earlier jurisdictional disputes were resolved and the cases were returned to local judicial forums.
