June is usually a month of visibility for Puerto Rican communities with parades, festivals, flags, music and reunions across the diaspora.

But this month’s issue starts with the basic services people depend on every day — electricity and water.

Puerto Rico regulators approved $1.78 billion for LUMA Energy, Genera PR and the Puerto Rico Electric Power Authority to collect through base electric rates in fiscal 2026 — about $1.36 billion less than the utilities requested. But customers still face separate costs tied to emergency reserves and unresolved fuel expenses, according to Utility Dive, El Nuevo Día and The San Juan Daily Star.

Severe water shortages left thousands of Puerto Ricans without service in early June and prompted Gov. Jenniffer González-Colón to activate the National Guard, the AP reported.

Internal Department of Energy documents show federal officials expected criticism over a decision to shift solar funds toward PREPA, Puerto Rico’s bankrupt public utility, according to Grist.

This issue also includes CPR’s latest Energy Workforce Watch, a 9 Millones panel on the 10-year anniversary of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) and a look at Puerto Rican Pride celebrations across the U.S.

Puerto Rico regulators approved $1.78 billion in base-rate revenue for LUMA, Genera and PREPA for fiscal 2026 — about $1.36 billion less than the utilities requested, according to Utility Dive. But related decisions on emergency reserves and fuel costs show ratepayers are still carrying major power-system costs.

The Puerto Rico Energy Bureau rejected costs it said were eligible for federal funding, not supported by enough evidence or unlikely to be executed, Utility Dive reported.

Regulators also set aside $60 million in emergency reserves for LUMA and Genera, funded from more than $98 million charged to customers as part of the rate review, according to El Nuevo Día.

Separately, The San Juan Daily Star reported that PREB ordered LUMA and Genera to address fuel-cost issues, including fuel inventory reconciliations and a $55 million fuel-cost deferral tied to a New Fortress Energy dispute.

The rate case is about more than one budget decision. It shows how Puerto Rico’s grid rebuild is moving through a tougher cost-control moment.

For customers, the question is what costs are necessary, which should be federally funded and how clearly LUMA, Genera and PREPA have to justify what they collect through rates.

Thousands of Puerto Ricans are facing severe water shortages, with Gov. Jenniffer González-Colón activating the National Guard after nearly 40,000 customers lost service during the first weekend of June. (AP)

The shortages have affected parts of San Juan and other populated areas. The Associated Press reported that residents are buying potable water, paying for laundromats, hauling buckets upstairs and waiting for water trucks, while officials have not publicly identified a single cause.

The crisis shows how Puerto Rico’s infrastructure failures stack up for residents. Power outages remain a constant concern, but water shortages create another daily emergency — especially for older adults, disabled residents, families with children and people without cisterns.

Internal Department of Energy documents obtained by Grist show officials knew their decision to redirect Puerto Rico solar aid toward PREPA could draw criticism, including concerns that the noncompetitive award could appear to favor the bankrupt public utility. (Grist)

Congress created the fund in 2022 to support rooftop solar and battery systems after hurricanes battered Puerto Rico’s grid. DOE had planned to distribute the money to about 40,000 low-income and medically vulnerable residents. Under the Trump administration, the agency moved much of that money toward PREPA instead, using a noncompetitive award and reducing the utility’s cost-share requirement from 50% to 1%.

The shift changes who may benefit from the fund. DOE says PREPA’s infrastructure work will help more people across the island. Critics say it appears to undercut Congress’ intent, gives PREPA unusually favorable treatment and steers money away from the vulnerable residents the fund was designed to help.