SAN JUAN, Puerto Rico — Luma Energy, the private consortium that operates Puerto Rico’s electricity transmission and distribution system, has filed a countersuit against the Puerto Rico government, escalating a legal dispute over the future of the company’s contract on the island.
The countersuit was filed on Tuesday in response to litigation initiated by the government late last year seeking to invalidate agreements tied to Luma’s operation of the power grid. According to court filings and statements from the company, Luma alleges that government officials acted “in bad faith and with intentional malice” and are attempting to terminate the contract for political reasons.
The legal challenge comes about six months after the administration of Governor Jenniffer González filed suit as part of an effort to cancel Luma’s multimillion-dollar contract. González has repeatedly argued that the company has failed to deliver improvements to Puerto Rico’s electricity system with the speed and effectiveness that had been promised.
Luma, a partnership between ATCO and Quanta Services, took over management of Puerto Rico’s transmission and distribution network in 2021. The company inherited an electrical system that had suffered decades of underinvestment and extensive damage from Hurricane Maria. Puerto Rico has continued to experience recurring outages and grid reliability problems in the years since.
In a statement accompanying the countersuit, Luma said the government was attempting to “illegally try to fulfill a campaign promise.” The company also argued that previous Puerto Rico administrations had approved and extended contractual arrangements that officials are now seeking to challenge.
Luma contends that termination of its contract could expose the government to substantial financial liability. The company said it would be entitled to at least $4.5 billion in damages if the agreement were canceled, although the government has disputed the company’s position on the contract.
The dispute unfolds as Puerto Rico’s public power authority continues to navigate bankruptcy proceedings involving more than $9 billion in debt, while officials seek to stabilize the island’s electrical infrastructure.
As of Thursday, Puerto Rico’s Justice Department had not publicly detailed its response to the countersuit, and the litigation remained pending in local courts.
