Ernesto's Aftermath
Last week, Tropical Storm Ernesto exposed Puerto Rico's weak infrastructure, particularly its power grid.
Buenos días. As popular as "Mi Casa es su Casa", a cheerful Spanish phrase, is the misinterpreted English translation of "Entre, entre y tome una silla," which means "Enter, enter, and take a seat," but can be mistakenly translated as "Between, between and drink a chair."
A similar mistake was made recently in the U.S. capital. An event, intended to raise political funds for the statehood party in Puerto Rico (PNP), rolled out invitations as “New Party for Progress”, instead of “New Progressive Party.
Ms. González Colón, PNP leader, will probably stay lost in translation.
AFTER WINNING PRIMARY
Loud Silence: Statehood Gubernatorial Candidate Jenniffer González goes MIA on LUMA
Representative Jenniffer González Colón, the island’s non voting member of Congress' sympathized with voters’ frustration with LUMA Energy, the main company in charge of power transmission on the island, and even called for the government to cancel its contract with the power company.
After Tropical Storm Ernesto recently brought heavy rain and strong some winds, half of Puerto Rico was left dark, as did González Colón attacks towards the power company.
Tropical Storm Ernesto was minor in comparison to other storms that have impacted Puerto Rico in recent years. Despite this, half of the island's 1.5 million customers were left without power.
"We have not found any catastrophic damage to the grid that would need repairing," Juan Saca, CEO of LUMA Energy said in a news conference. Locals are upset because nearly a week after the storm, 30,000 are still waiting for their electricity to be reinstated.
“When this contract [for operating the island’s electricity transmission and distribution system] was awarded, it was done knowing the conditions of the system, the environmental conditions, and the probability of hurricanes on the island. And every time there is a public controversy, a way to solve it arises in which a new charge is imposed,” said González Colón during her campaign.
After the election, González Colón has remained silent, never called out LUMA Energy's sluggish restoration efforts and stayed away from public appearances.
Carlos Eduardo Diaz Olivo is a Puerto Rican attorney, professor of law, former politician, and political analyst said González Colon's comfortable win allows her to be silent.
"By not speaking or stirring the political movements, she avoids any fatal slip. In Puerto Rican political practice, what is important is not what matters. In the superficial media world in which we live, it is enough to be an influencer and look cool," said Diaz Olivo.
Diaz Olivo also warns that minority party leaders such as Juan Dalmau of the Independence Party (PIP) and Javier Jiménez from the Proyecto Dignidad (PD) could provoke a political shake-up.
The attorney said the Popular Democratic Party (PPD) is encountering an heavy decrease in popularity while newer parties, like the Citizen Victory Movement (MVC in spanish), whose leaders rallied younger voters in support of addressing liberal social and economic problems, have become stronger.
Another up-and-coming party, Proyecto Dignidad (Project Dignity), whose candidates favor conservative social issues, resonate with Christian conservatives.
OUTAGES IN THE AFTERMATH
Nearly a Week After Ernesto, Thousands in Puerto Rico are Still Without Power
A large proportion of Puerto Rico's municipalities suffered extensive power outages last week, affecting every neighborhood during or following Tropical Storm Ernesto.
The storm barely touched the Island, maintaining a distance of around 35 to 40 miles north of San Juan, but at least 34 municipalities, of the 78 in total, plunged into darkness triggered by Ernesto.
The majority of the impacted towns were located in the western or southwestern regions, where the storm's winds were barely felt, Puerto Rico's Center for Investigative Journalism outlined.
Almost a week after the event, LUMA Energy, the private company responsible for the transmission and distribution of electricity in Puerto Rico, has yet to reveal the reasons behind such widespread power failures brought about by Tropical Storm Ernesto, which carried its way over the Atlantic Ocean with winds around 55 miles per hour.
Approximately 96% of consumers have reported having their power restored after the storm, but around 30,000 are still waiting for their electricity to be reinstated.
During its peak, nearly 700,000 households were left without power last Wednesday.
Puerto Rico Mayors Association President Luis Javier Hernández Ortiz shared on Thursday that the electrical system in Villalba, his own municipality, was completely shut down before the storm even arrived. "At 5 a.m. on Tuesday, we were left without service," he said. "It wasn't due to a tree falling on the lines." Ortiz also revealed that mayors in municipalities like Isabela, Cayey, Aguada, and others reported minimal damage to power lines, which was not sufficient to prevent over half a million customers in Puerto Rico from losing electricity.
"We are essentially discussing the entire nation," said Ortiz. "As in past instances, our primary concern remains the health and well-being of the sick and elderly." Showing the weak state of the island’s power grid.
PRICE FIXING
Lawsuit Exposes Puerto Rico's “Steel Cartel” Illicit Profit
A lawsuit filed at the federal level suggests that a steel cartel was established in Puerto Rico between 2015 and 2022, involving at least three companies dealing in rebar and construction materials.
The objective of this cartel was to rig prices and make astronomical profits, especially during the rebuilding efforts after the 2017 hurricanes, exceeding the true cost of these materials, El Nuevo Día reported.
The construction company Tiger Group, LLC sued these three companies, claiming up to $500 million in damages. Juan C. Aponte Tolentino is in charge of one of those companies and on August 7 pleaded guilty to conspiring with others to fix steel prices.
In the plea agreement, Aponte admitted that his company, Aceros de America, made at least $100 million in sales.
“By pleading guilty, this dealer admits that, for nearly a decade, he fixed steel prices, which is an essential part of the supply chain for rebuilding Puerto Rico after the 2017 hurricanes″, Manish Kumar, associate U.S. Attorney for the federal Department of Justice’s Anti-Money Laundering Division, said in a press release. “This guilty plea demonstrates that the Antitrust Division is committed to prosecuting individuals who raised prices in the rebuilding process, hurting businesses and consumers in Puerto Rico.”
The other defendant companies are Carolina Building Materials, Inc., Carolina Building, LLC, Steel Services and Supplies, Inc. and their owners.
Traders agreed to increase the price of steel by 116%, from $25 to $54 per unit, according to the plea agreement.
The island received about $23 billion in funds to recover from the 2017 hurricanes and from earthquakes in 2019 and 2020.
“Between 2015 and 2022, including the rebuilding period following Hurricanes Irma and Maria in 2017, Aponte conspired with his competitors and individuals to eliminate that competition by fixing prices on steel products, including rebar that were distributed to hardware stores, contractors, and other dealers and individuals in Puerto Rico, resulting in significant profits for the conspirators,” the federal Department of Justice press release states.
BEFORE YOU HIT THE BEACH
Education
NASA Backs 2 University of Puerto Rico Research Projects in $600K Funding: A 3D printing application in space and health monitor of astronauts headline the projects.
Environment
$3.1M Fine on AES Puerto Rico: The coal-fired power plant in Guayama reached a settlement with The U.S. Environmental Protection Agency (EPA) after violating the Clean Air Act.
Tourism
After $150 Million Investment, Ritz-Carlton in Isla Verde Will Reopen Next April: The luxurious resort will also reopen its casino, about 205 slot machines and 16 gaming tables
LAST BUT NOT LEAST
Damage caused to Puerto Rico's Agriculture sector by Ernesto estimated at $23.5 Million
Conventions and activities generated over $192.3 million in sales in fiscal year 2024
ASK US ANYTHING! - Our goal is to provide useful information and create useful connections to the island. Do you have any specific questions? Feel free to shoot us a comment or email and we’ll get back to you in a future newsletter.