Puerto Rico's government sues private power company as chronic outages damage appliances

Key Points

• The Puerto Rico government has filed a civil lawsuit against Luma, alleging the private power company’s chronic power outages and fluctuations have damaged thousands of consumer appliances.
• The lawsuit claims Luma was “negligent” and highlights that the company rejected 1,828 damage claims, prompting the government to seek full accountability for customers.
• Luma responded that it will handle the lawsuit responsibly and attributes the ongoing outages to a fragile, under-maintained electrical grid lacking investment since Hurricane Maria.
• Outages remain frequent on the island, including two recent island-wide blackouts, reflecting long-term infrastructure issues exacerbated by a decade of underinvestment and the Puerto Rico Electric Power Authority’s debt struggles.

SAN JUAN, Puerto Rico (AP) — Puerto Rico’s government filed a lawsuit Tuesday against a private power company, claiming it is responsible for damages to customers' appliances caused by chronic power outages in the U.S. territory.

The civil lawsuit by the consumer affairs department says the Luma company, which oversees power transmission and distribution in Puerto Rico, was “negligent” and is responsible for damages caused to consumer appliances by outages and power fluctuations.

It said the department has the authority to take cases to court to protect those affected by the company’s “inefficiency and lack of adequate service.”

The action was filed against the company as a whole since the law exempts Luma’s employees and contractors from claims filed by customers under an immunity granted in 2021 by Puerto Rico’s Energy Bureau.

The suit cited a recent Luma statement at a public hearing that the company has rejected 1,828 claims. “It’s time for Luma to be fully accountable to Puerto Rican consumers,” it said.

Luma said in a brief statement that it would treat the lawsuit with the seriousness and responsibility it deserves.

“Our commitment is to continue working for the benefit of our customers, despite the significant challenges we face in operating a fragile and deteriorating electrical system, which for years has lacked the necessary maintenance and investment,” it said.

The outages have damaged thousands of appliances ranging from air conditioners to refrigerators on the island of 3.2 million people with a 40% poverty rate.

The lawsuit comes months after Puerto Rico’s governor promised to cancel Luma’s contract, warning it would be a long and complex process.

Anger against Luma has been growing ever since it signed a contract with Puerto Rico’s government in 2020.

Outages remain common after Hurricane Maria razed Puerto Rico’s electric grid when it hit the island as a powerful Category 4 storm in September 2017. But the grid was already frail following a lack of investment and maintenance for decades by Puerto Rico’s Electric Power Authority, which is struggling to restructure $9 billion in debt.

Two island-wide blackouts hit the island in recent months, including on New Year’s Eve and during Easter Week.