Welcome to the September issue of Connect Puerto Rico.

C-PR tracks the people, policies, and projects shaping renewable energy development in Puerto Rico — what’s happening, what’s not, and what it means for the islands’ future.

This month’s roundup begins with a post-mortem from the Centro de Periodismo Investigativo (CPI) on Puerto Rico’s Financial Oversight and Management Board (FOMB-PR), written after President Trump dismissed nearly all its members last month. The Associated Press reports that former members are now suing over their removal, even as the Puerto Rico Electric Power Authority’s (PREPA’s) $12 billion bankruptcy remains unresolved and a $9 billion restructuring deal has collapsed.

Other coverage includes CPI’s reporting on LUMA Energy’s internal disputes and delays in grid recovery, Heavy Weather’s reporting on a federal judge dismissing 37 municipalities’ climate lawsuit against the fossil fuel industry, and CPI’s account of how Puerto Rico’s Climate Change Committee has gone nine months without meeting due to lack of funding and vacant seats.

Connect Puerto Rico brings these stories together so policymakers, business leaders, and community voices can come together to solve the challenges and boost the opportunities in Puerto Rico’s energy transition.

In This Issue

• CPI: Post-Mortem on the Fiscal Control Board

• Fired Fiscal Board Members Sue Trump Over Dismissals

• PREPA Debt Deal Collapses as Bondholders Walk Away

• Grid Recovery Stalled by LUMA Infighting and Government Dysfunction

• Judge Dismisses Puerto Rico Municipalities’ Lawsuit Against Big Oil

• Puerto Rico’s Climate Change Committee Stalled by Politics and No Funding 

CPI: Post-Mortem on the Fiscal Control Board

📰What Happened

In August, President Donald Trump dismissed nearly all members of Puerto Rico’s Financial Oversight and Management Board (FOMB-PR), the federally imposed body created under the 2016 PROMESA law.

As el Centro de Periodismo Investigativo reports, the move comes after nine years in which the Board oversaw budgets, blocked laws, and intervened in PREPA’s $12 billion bankruptcy, but failed to deliver balanced budgets, resolve PREPA’s crisis, or stem ballooning consultant fees

💡Why it Matters

Trump’s purge sets the stage for him and his allies to reshape the Board with loyalists, giving him unprecedented sway over Puerto Rico’s finances and energy development. Proposals circulating in MAGA circles call for fully privatizing PREPA, expanding natural gas and nuclear power, and prioritizing bondholder repayment — policies that could deepen Puerto Ricans’ financial burdens while benefiting hedge funds and energy companies

🔎What to Watch

• Whether new appointments value political loyalty over expertise.
  

• How the next Board handles PREPA’s stalled bankruptcy and $17B in federal grid recovery funds.
  

• Pressure from MAGA figures pushing for privatization and “energy dominance.”
  

• Resistance from Puerto Rican leaders and progressive lawmakers who argue the dismissals put Wall Street ahead of residents.

Fired Fiscal Board Members Sue Trump Over Dismissals

📰What Happened

Three former members of Puerto Rico’s Financial Oversight and Management Board (FOMB-PR) — Arthur González, Andrew Biggs, and Betty Rosa — have sued President Donald Trump in federal court, alleging their firings were illegal. (The Associated Press). 

The lawsuit argues that Congress created the Board under the 2016 PROMESA law as part of Puerto Rico’s territorial government, citing that members can only be removed “for cause” and with due process. Attorneys say the abrupt removals, delivered by short email notices without explanation, violated federal law.

💡Why it Matters

The case could determine how much power a president has over Puerto Rico’s federally imposed Board, which oversees the islands’ $70 billion debt restructuring and the bankruptcy of PREPA. 

If the courts uphold Trump’s actions, future presidents may be able to remove territorial officers at will. The lawsuit comes after Trump dismissed six of seven members last month, leaving only  John Nixon, a Republican, on the Board.

🔎What to Watch

• How federal courts interpret PROMESA’s limits on presidential authority.
  

• Whether dismissed members are reinstated or Trump moves to seat loyalists
  

• Impacts on PREPA’s stalled $9 billion debt negotiations, where bondholders are pressing for full repayment

🚀 Big News

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.

Reply to this email — I’d love to hear from you.

PREPA Debt Deal Collapses as Bondholders Walk Away

📰What Happened

A plan to restructure more than $9 billion in debt held by the Puerto Rico Electric Power Authority (PREPA) has crumbled after BlackRock Financial Management and other investment funds withdrew. (The Associated Press).

The deal, negotiated with the federal control board, would have reduced creditor claims from $8.5 billion to $2.6 billion. Bondholders who had opposed the plan said BlackRock and others had joined them, giving their group control of nearly 90% of outstanding PREPA bonds.

💡Why it Matters

The collapse further complicates Puerto Rico’s efforts to resolve PREPA’s bankruptcy. Experts note that the dismissal of nearly all Financial Oversight and Management Board (FOMB) members earlier this month could open the door to new appointees more favorable to hedge funds seeking full repayment.

🔎What to Watch

• Whether the opposing bondholder group enforces its deal starting October 1
  

• How changes in the FOMB’s membership affect negotiations
  

• The implications for PREPA’s long-delayed bankruptcy resolution