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Puerto Rico moves to cancel LUMA contract as pressure mounts on power system

Proposed electricity rate hikes, new federal scrutiny of tax incentives, and changes to public records law add to a growing test of accountability and affordability.

AI-generated illustration depicting Puerto Rico’s power grid and transmission infrastructure, used to represent ongoing legal, regulatory, and cost pressures affecting the electricity system.

An AI-generated illustration reflecting Puerto Rico’s legal challenge to LUMA Energy’s power contract, as rising electricity costs and broader accountability questions put the electric grid under scrutiny.
(Art by DALLE-3, art direction by Jillian Melero, Dec. 23, 2025.)

Welcome to the December issue of Connect Puerto Rico,

Puerto Rico’s government is making some high-stakes calls right now about how the power system is run, how much electricity costs, and how easy it is for the public to see what’s happening behind the scenes.

Officials have moved to cancel LUMA Energy’s contract to operate the islands’ electric grid. Regulators are weighing proposals that could push power bills higher. Federal watchdogs are taking a closer look at tax incentives, and lawmakers have approved changes to public records law that critics say could make it harder to get government information.

In this issue, we walk through each of these developments, explain why they matter, and flag what to watch as court cases and regulatory decisions move forward.

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