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Federal Court Orders FEMA to Reassess Puerto Rico Grid Plan
A gas supplier seeks a costly deal as the U.S. military expands operations, Bad Bunny amplifies outage anger, and Hurricane Melissa spares Puerto Rico.

An AI-generated illustration depicts workers installing solar panels in Puerto Rico as U.S. Navy ships patrol offshore reflecting September and October 2025 reporting on a federal court order for FEMA to reassess the island’s grid plan, a costly gas proposal, and renewed military activity.
(Art by DALL·E 3, art direction by Jillian Melero, Oct. 28, 2025.)
Welcome to the October issue of Connect Puerto Rico.
Every month, we look at how decisions made in Washington, San Juan, and beyond shape Puerto Rico’s path toward reliable, renewable power.
This month, a federal court ordered FEMA to revisit its grid-rebuilding plan and factor in solar. It’s a move that could finally change how billions in recovery funds are spent.
A struggling gas company is pushing for another costly contract, the U.S. military is expanding operations on the island, and Bad Bunny continues to use his platform to keep attention — and accountability — on Puerto Rico’s ongoing outages.
Meanwhile, as Hurricane Melissa batters Jamaica, Puerto Rico narrowly escapes another direct hit.
Connect Puerto Rico brings these stories together to show what’s working, what’s not, and where change is still possible for the island’s renewable energy, infrastructure, and workforce development.
In This Issue
Federal Court Orders FEMA to Consider Solar for Puerto Rico’s Grid
📰What Happened
A federal judge in Puerto Rico ruled that the Federal Emergency Management Agency (FEMA) violated environmental law by failing to evaluate solar energy options when deciding how to distribute billions in disaster recovery funds for the islands’ electric grid. (E&E News / Politico )
The decision comes nearly eight years after Hurricane Maria destroyed 80 percent of Puerto Rico’s grid and killed an estimated 3,000 people.
At the same time, the Trump administration said it will redirect $365 million originally set aside for rooftop solar and battery storage to instead harden the existing fossil fuel–based grid.
Roughly $5.8 billion in FEMA funding for grid repairs remains unspent, and 92 percent of approved projects are still incomplete.
💡Why it Matters
The ruling could compel federal agencies to consider distributed renewable energy as Puerto Rico rebuilds a grid still vulnerable to storms, floods, and other extreme weather events.
Solar advocates say decentralized power is a matter of life and death for island residents. Many of the thousands of deaths after Hurricane Maria stemmed from the inability to refrigerate medication or power medical equipment during prolonged outages.
Yet even as rooftop solar has quintupled in recent years and now serves 12 percent of homes, a $30,000 solar power and battery system is out of reach for most families, whose median household income is about $25,000.
Without federal support, Puerto Rico risks deepening inequality where only the wealthy can afford reliable power.
🔎What to Watch
Whether FEMA appeals or complies with the court order to prepare a full environmental impact statement that includes renewable energy alternatives.
How the Trump administration reconciles the ruling with its decision to divert solar funds toward fossil fuel–based grid hardening.
Whether any of the $5.8 billion in unspent FEMA funds or redirected DOE money is steered toward low-income residents who rely on distributed solar for medical and emergency energy needs.
Financially Troubled Gas Company Pushes Costly Contract on Puerto Rico
📰What Happened
Puerto Rico’s Financial Oversight and Management Board (FOMB) has once again rejected a proposed natural gas supply contract with New Fortress Energy (NFE), directing the government to renegotiate. (*IEEFA)
The latest proposal — a seven-year, take-or-pay agreement — would require Puerto Rico to purchase 40 trillion BTUs of natural gas annually, even if the gas isn’t used. Last year, the island consumed only 31 trillion BTUs, meaning ratepayers would be on the hook for roughly 29% more gas than they actually need.
NFE owns the liquefied natural gas terminal in San Juan Harbor and also controls Genera, Puerto Rico’s private power plant operator. Genera calculated the demand projections for the proposed contract without independent verification.
The oversight board has ordered the government to independently review those numbers. Meanwhile, NFE recently warned investors there is “substantial doubt” about its ability to continue operating.
💡Why it Matters
The contract would lock Puerto Rico into overpaying for unneeded natural gas, diverting money away from renewable energy and tying the island’s energy system even more tightly to a single, financially unstable supplier.
The obvious conflict of interest is that Genera operates Puerto Rico’s power plants and would use more of its parent company’s gas if this contract were approved.
NFE’s track record also raises concerns. The company has repeatedly failed to deliver gas — including multi-week outages in 2021–2022 and again in late 2025 — and even delayed shipments this summer after the first version of the contract was rejected.
Analysts warn the company appears to be treating Puerto Rico as a captive revenue source to stabilize its troubled finances.
🔎What to Watch
Whether Puerto Rico’s government conducts an independent demand forecast instead of relying on projections from NFE’s subsidiary, Genera.
The fate of planned diesel-to-gas conversions at Mayagüez, Cambalache, and Palo Seco, which would deepen Puerto Rico’s dependence on NFE’s gas supply.
NFE’s financial stability — and whether Puerto Rico develops contingency plans in case the company faces bankruptcy or operational failure.
*The Institute for Energy Economics and Financial Analysis (IEEFA is, a nonprofit energy think tank.
US Military Turns Puerto Rico Into Forward Operating Base
📰What Happened
The U.S. military has turned Puerto Rico into a major staging ground amid an unusually large buildup in the Caribbean since summer 2025.
As part of the Trump administration’s “war against narcoterrorism,” Puerto Rico is hosting new advanced military hardware including F-35B Lightning II jets, MQ-9 Reaper drones capable of carrying laser-guided missiles, and an AC-130J Ghostrider gunship.
More than 6,000 sailors and Marines are now operating in the region, supported by eight Navy warships across Caribbean waters. (AP)
💡Why it Matters
Puerto Rico is being used as a forward operating base without input from its residents, who remain U.S. citizens without voting representation in Congress or the ability to vote for president.
The buildup comes as the island still struggles with basic infrastructure needs ranging from unreliable electricity to unspent disaster recovery funds. While high-tech aircraft touch down on Puerto Rican airstrips, thousands of residents continue to face outages and delays in rebuilding.
The military assets are landing at José Aponte de la Torre Airport, the former Roosevelt Roads Naval Station, which the Navy closed in 2004 and disposed of as surplus. The facility is now being used as a staging area for operations without public discussion about whether this marks a permanent return of major U.S. military presence to the site.
The Navy states it has "no plans to permanently use Roosevelt Roads," according to a US defense official. However, Puerto Rican senators recently introduced Senate Resolution 286 to investigate "the feasibility and impact of potentially repurposing Roosevelt Roads for national security" and its role in "economic revitalization of Ceiba and the surrounding municipalities" (The War Zone).
🔎What to Watch
Whether the buildup remains temporary or becomes a long-term military presence on the island
Impacts on civilian infrastructure, especially airports and nearby communities
Any transparency from the Pentagon about troop levels, costs, or the duration of operations
📝Help Shape How We Listen and Report 📝
Connect Puerto Rico has received support from the Listening Post Collective to launch a new community listening project over the next few months.
This work will help bring more Puerto Rican voices into the conversation, deepen our audience insights, and guide our reporting toward the solutions people need most. It’s a major step forward, and we couldn’t have reached this point without your support.
As we launch this project, we’re looking for partners who share our vision. If you’re working on renewable energy, policy, or community engagement in Puerto Rico, let’s connect.
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