The devastation of Hurricanes Irma and Maria to Puerto Rico’s electricity grid made evident systemic problems with the Commonwealth’s publicly owned utility. Over the past year, numerous reforms to the Puerto Rico Electric Power Authority (PREPA) have been deliberated, particularly in light of federal reconstruction aid to the island. Today, AAF President Douglas Holtz-Eakin testifies before the House Committee on Natural Resources on the right way to reform PREPA.

In his testimony he makes three main points:

• PREPA had structural failings that predate, and should not persist after, Hurricane Maria;
• The disciplining effect of competition in power generation and delivery is proven elsewhere in the United States and should be encouraged in the Commonwealth; and
• Given the scope and scale of federal disaster assistance, the federal government has a unique opportunity to contribute to improved performance of power infrastructure in Puerto Rico.

Read the testimony. 

Watch the hearing.