Puerto Rico’s power rates jump 18% to a record high, nearly double the US mainland average

Electric rates on the island of Puerto Rico have skyrocketed by 18% to a record high, surpassing the average cost of electricity for customers on the U.S. mainland, according to Puerto Rico's Energy Bureau. The new residential rate will be $271 per month for a customer using 800 kilowatt-hours of electricity, up from $229. The increase, which will remain in effect until at least December 31, is largely attributed to higher energy consumption during hot summer months, rising global oil prices due to Middle Eastern conflicts, greater use of customer batteries, and the necessity to turn to more expensive fuel when power plants cannot generate enough electricity.

Luma Energy, responsible for the transmission and distribution of power in Puerto Rico, had requested an increase of over six cents per kilowatt-hour but assured the rise would not generate additional revenue for the company, only to cover cost hikes. The new rate is nearly double the average cost of 18.3 cents per kilowatt-hour for residential customers on the U.S. mainland, according to the U.S. Energy Information Administration.

The increase comes as Puerto Rico continues to grapple with persistent power outages, exacerbated by damage to the power grid following Hurricane Maria in 2017, and a lack of maintenance and investment over the years.