Calgary-based Canadian Utilities Ltd. is part of a deal to modernize and operate the electric system in Puerto Rico, in a June 22, 2020 story. (Photo by THE CANADIAN PRESS)

Canadian Utilities partners to operate, modernize Puerto Rico electricity system

15-year deal in place

CALGARY — A joint venture that includes Calgary-based Canadian Utilities Ltd. says it has struck a 15-year deal to modernize and operate the electric system in Puerto Rico after hurricanes in 2017 caused extensive damage.

The company, called Luma Energy LLC, is to receive a US$60-million fee in the transition year and an annual fixed fee that starts at US$70 million and increases to US$105 million in years four through 16.

Canadian Utilities, a division of Atco, is an equal partner with Quanta Services Inc., a Houston-based provider of infrastructure services for electric power, pipeline, industrial and communications industries.

The state-owned Puerto Rico Electric Power Authority is to continue to own the network of over 30,000 kilometres of transmission lines which serve more than 1.5 million residents.

The announcement follows an 18-month bidding process. The agreement does not require Luma to pay for any system operating costs or capital expenditures.

The company which will be headquartered in San Juan, Puerto Rico, has vowed to improve the system’s reliability and resiliency to severe weather events in the wake of an 11-month power outage after hurricanes Irma and Maria roared through in September 2017.

This report by The Canadian Press was first published June 22, 2020.

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Central zone has 20 active cases of COVID-19

Province identified 143 new cases across Alberta on Wednesday

Sylvan Lake Municipal Library going waste free with new program

The Zero Waste DIY program begins on Sept. 26 at 2 p.m. on Zoom

COVID-19: Active cases in central zone up Tuesday

Central zone active cases remains lowest of all zones

PHOTOS: Eckville graduates receive their diplomas, finally

Eckville Jr./Sr. High School held a socially distanced grad over the weekend

Central zone active cases down to 20

Province provides update

Liberals vow wage-subsidy extension to 2021, revamp of EI system in throne speech

Canadian labour market was hammered by pandemic, when lockdowns in the spring led to a loss of 3 million jobs

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

Liberal effort to reset policy agenda panned by rivals as too much talk, not action

Trudeau said it’s ‘all too likely’ families won’t be able to gather for Thanksgiving next month

Grand jury indicts police officer in Breonna Taylor death

Officer Brett Hankison was charged with three counts of wanton endangerment

Missionary plane dedicated at Ponoka, Lacombe airports

MiracleAir flies humanitarian missions to Nicaragua

RCMP investigating after far-right groups disrupt anti-racism rally in Alberta

Red Deer Mayor Tara Veer said she respects the right of peaceful assembly, but denounces racism and violence

Refresh of Liberal government’s agenda comes amid new looming COVID-19 crisis

Lockdowns saw fed spending soar to historic levels in effort to offset pandemic’s blow to Canadians’ livelihoods

Public health officials urge Canadians to limit contacts again as COVID-19 cases rise

Canada has committed $1 billion to buy at least 154 million doses of vaccines from five different companies

Majority of Canadians support wearing masks during COVID-19, oppose protests: poll

Nearly 90 per cent felt wearing a mask was a civic duty because it protects others from COVID-19

Most Read