Keynote

1. Lcdo. Agustín F. Carbó Lugo
Presidente

2. SUBSTANTIVE PROGRESS
Approved Regulations by the Commission:
• REG. NO. 8543: Regulation on Adjudicative, Notice of Noncompliance,
Rate Review and Investigation Procedures
• REG. NO. 8542: Regulation on the Standards of Ethical Conduct for
Employees of the Puerto Rico Energy Commission and
the Principles that should Govern the Commissioners
Actions as Representatives of the Commission
• REG. NO. 8558: Regulation on Mediation and Arbitration Procedures of
the Puerto Rico Energy Commission
• REG. NO. 8594: Regulation on Integrated Resource Planning of the Puerto
Rico Electric Power Authority
• REG. NO. 8620: Regulation on Rate Filing Requirements for the Puerto
Rico Electric Power Authority

3. SUBSTANTIVE PROGRESS
Approved Regulations by the Commission:
• REG. NO. 8618: Regulation on Certifications, Annual Fees, and
Operational Plans for Electric Service Providers in
Puerto Rico
• REG. NO. 8653: Regulation on Contributions in Lieu of Taxes
• REG. NO. 8701: Amendment to Regulation 8618, on Certifications, Annual
Fees, and Operational Plans for Electric Service Providers
in Puerto Rico
• REG. NO. 8720: New Regulation on Rate Filing Requirements for the
Puerto Rico Electric Power Authority’s First Rate Case
• Amendment to Regulation 8653, on Contributions in Lieu of Taxes
(awaiting Reg. No.)
• Joint Regulation for the Procurement, Evaluation, Selection, Negotiation
and Award of Contracts for the Purchase of Energy and Modernization of
the Generation Fleet (awaiting Reg. No.)
• Proposal of Regulation on Electricity Bills Review Procedures and Electric
Service Suspension (pending Final Rule)

4. SUBSTANTIVE PROGRESS
Net Metering:
 NET METERING
• Issuance of Amended Order on Net Metering Standards and Distributed
Generator Interconnection Procedures
• Evaluation of Drafts of PREPA’s Regulations
• The Commission Ordered PREPA to celebrate public hearings as part of the
regulation approval process
• Public Hearings to be held by PREPA on October 18th and 19th of 2016
 INTEGRATED RESOURCE PLANNING PROCEEDING
• Proceeding started on July 2015 with PREPA’s IRP submittal
• The Commission issued a Final Resolution and Order approving a Modified
IRP on Sept. 23, 2016
 ISSUANCE OF RESTRUCTURING ORDER APPROVING TRANSITION CHARGE
 EVALUATION AND APPROVAL OF PREPA’S PROVISIONAL RATE AS PART OF THE
RATE REVIEW PROCEEDING

5. MODIFIED INTEGRATED RESOURCE PLAN
• Continued permitting, engineering, and planning activities to the AOGP
project, subject to a $15M spending limit from the issuance of the Final
Resolution and Order.
• PREPA to begin permitting process for a new dual-fuel-capable combined
cycle unit at Aguirre to be completed by 2020 -2021.
• Replacement of turbines of the two combined cycle units at Aguirre.
• Permitting for three small dual-fuel capable combined cycle units at Palo
Seco and construction of one of them.
• Retirement of Costa Sur 3 & 4, Palo Seco 1 & 2 and San Juan 7 & 8.
• Designation of San Juan 9 & 10 as “limited use” under MATS.
• PREPA shall pursue investments in transmission and distribution that are
required for stability and operability.
• PREPA shall conduct an audit of existing RE contracts of projects not yet
operational and pursue renegotiation of, or exit from, these contracts.
• PREPA shall commence a competitive bidding process to procure new RE
projects.
• Energy Efficiency resources as described in the Supplemental IRP were
approved.

6. • Creates a structure for exercising federal oversight over the fiscal
affairs of Puerto Rico.
• + $70 billion debt.
• Establish a 7 member Oversight Board with broad powers of
budgetary and financial control over Puerto Rico.
• Creates procedures for adjusting debts accumulated by the
Puerto Rico government and its instrumentalities and potentially
for debts of other territories.
• Expedites the approval of key energy projects and other “critical
projects” in Puerto Rico.
PROMESA - Summary

7. • Seven (7) voting members, along with the Puerto Rico governor
(or designee) who would serve as an ex officio non-voting
member.
• Appointed by the President of the United States.
• Powers to approve: Fiscal Plans; budgets; voluntary
agreements with bondholders; debt restructuring plans; and
critical projects eligible for expedited permitting processes.
• Would serve concurrent three-year terms; no compensation.
• On Sept. 30, 2016, José Carrión III was selected Chairman of
the Board.
• Executive Director & General Counsel to be hired soon.
OVERSIGHT BOARD

8. • Hold hearings and seek testimony;
• Obtain information, including written and electronic documents and
data from federal agencies (with the consent of the agency head) and
agencies and entities of the government of Puerto Rico;
• Accept, use, and dispose of gifts, bequests, and donations of real and
personal property for the purpose of aiding the work of the board;
• Issue subpoenas;
• Request administrative support services from the U.S. General Services
Administration;
• Enter into contracts;
• Enforce laws of Puerto Rico prohibiting public sector employees from
participating in a labor strike or lockout;
• Initiate civil actions to carry out its responsibilities; and
• Investigate how Puerto Rico government bonds were sold to small
investors.
OVERSIGHT BOARD - POWERS

9. • Overhauls the processes for review and permitting of certain
infrastructure projects within the Commonwealth;
• Creates the position “Revitalization Coordinator” (RC);
• Grants the RC a role in reviewing and permitting “Critical
Projects”;
• Establishes an expedited review process for such projects;
and
• Adds related provisions intended to ease the permitting
process and increase the federal oversight role.
TITLE V: PR INFRASTRUCTURE REVITALIZATION

10. • Defined as “intimately related to addressing an emergency
whose approval, consideration, permitting and implementation
shall be expedited and streamlined according to the statutory
process provided by Act 76, or otherwise adopted pursuant to
this title.”
• Act 76 - Puerto Rico law: a process by which Puerto Rico
agencies may accelerate review and permitting of works and
projects that are related to or respond to a declared emergency.
• Evaluation Criteria: the impact the project would have on an
emergency; the availability of funds to implement the project;
the cost of the project (including the cost to the government of
Puerto Rico); environmental and economic benefits provided by
the project; the current status of the project;
CRITICAL PROJECTS

11. REVITALIZATION COORDINATOR MAY REQUIRE THAT ANY OR ALL OF THE
FOLLOWING CRITERIA THAT ASSESS HOW THE PROJECT WILL:
• reduce reliance on oil for electric generation in Puerto Rico;
• improve performance of energy infrastructure and overall energy
efficiency;
• (expedite the diversification and conversion of fuel sources for electric
generation from oil to natural gas and renewables in Puerto Rico as
defined under applicable Puerto Rico laws;
• promote the development and utilization of energy sources found on
Puerto Rico;
• contribute to transitioning to privatized generation capacities in Puerto
Rico;
• support the PR Energy Commission in achievement of its goal of reducing
energy costs and ensuring affordable energy rates for consumers and
business;
CPS-EVALUATION CRITERIA: ENERGY PROJECTS

12. • Expedited permitting process (EPP) must be filed with the
revitalization coordinator within 20 days of receipt of the
project submission.
– If a Puerto Rico Agency fails to provide an EPP within 20
days of receiving a project submission, the RC shall
consult with the Governor to develop within 20 days an
EPP for the agency.
• For each submitted project, the RC in consultation with the
Governor and relevant Puerto Rico Agencies shall develop a
critical project report within 60 days of the project
submission.
• Public comments: 30 days for public review; RC has 30 days
to respond.
• Board review: within 5 days submission to OB; 30 days to
approve/disapprove.
EXPEDITED PERMITTING PROCESS

13. • Energy Projects that would connect with the PREPA’s
transmission or distribution facilities, a recommendation by the
PR Energy Commission shall be included to determine if project
affects an approved Integrated Resource Plan, as defined under
Puerto Rico Act 57–2014.
• If the PR Energy Commission determines the Energy Project will
adversely affect an approved Integrated Resource Plan, then
the Energy Commission shall provide the reasons for such
determination and the Energy Project shall be ineligible for
Critical Project designation, provided that such determination
must be made during the 60-day timeframe for the
development of the Critical Project Report.
CRITICAL PROJECT REPORT - ENERGY PROJECTS - IRP

14. 0
e n e r g i a . p r . g o v

15. In the actual administration of the Commonwealth of Puerto Rico, as executive director of the Solid Waste Management
Authority, he established a climate change mitigation public policy by encouraging the use of solar photovoltaic panels at
closed landfill sites to help with the environmental compliance process. In doing so, an agreement with the then Energy Affairs
Administration and PREPA was achieved to make these project possible.
On August 14, 2014, Mr. Carbó was appointed as the Chairman of the Puerto Rico Energy Commission by the governor
Alejandro García Padilla. He was then confirmed on September 18, 2014 by the Senate of Puerto Rico. Mr. Carbó is also a
member of the Puerto Rico Sustainability Committee, by appointment of the Governor, and of the Energy Committee.
Agustín F. Carbó Lugo, Esq. holds a bachelor of science degree in Civil Engineering and
master of science degree in Environmental Engineering from Northeastern University, a
Juris Doctor degree from Vermont Law School, and a Master of Environmental
Management from the Yale School of Forestry and Environmental Studies. Mr. Carbó
worked as an engineer and lawyer at the Environmental Protection Agency (EPA) for a
period of 7 years. His vast experience, both regulatory and supervisory, has included
countless sectors related to his formation. He led the regulations of the Federal
Implementation Plan for one of the largest energy generation plants in the southeast
coast of the United States. He has worked at the private and public sectors in Puerto Rico
with important projects related to energy appraisal and renewable energy, among others.
While a student at Yale University, he contributed and worked in the think tank of Public
Policy and Environmental Law in topics related to hydraulic fracturing for the extraction of
natural gas.