Federal Control Board Sues Over Puerto Rico's Net Metering Law

SAN JUAN, Puerto Rico (AP) — A federal control board overseeing Puerto Rico's finances has filed a lawsuit challenging recent amendments to the island's net metering law, which compensates households with solar panels for their contributions to the electrical grid. The board clarified that it does not aim to abolish net metering or alter the existing program, asserting that a favorable outcome in the lawsuit would leave the current rooftop solar program unchanged. The lawsuit stems from an April directive requiring Governor Pedro Pierluisi and the Puerto Rican legislature to amend or repeal a law that restricts the energy bureau from modifying the net metering program until at least 2031. This law mandates that the energy bureau maintain the program's current terms for an additional 20 years, potentially extending benefits to customers until 2051. The board expressed concerns that the existing net metering terms could diminish demand for the power company's services, as higher rates may encourage more customers to adopt distributed generation. Opposition to the board's actions has emerged from various stakeholders, including Puerto Rico's Solar Energy and Storage Association, which argues that any reduction or elimination of net metering would disproportionately impact vulnerable populations. The board's lawsuit also requests that the governor provide an estimate of the law's financial implications for government revenues and expenditures. Robert F. Mujica, Jr., the board's executive director, emphasized the importance of renewable energy in Puerto Rico's energy transformation, describing net metering as a crucial mechanism for making rooftop solar more accessible. Supporters of the law argue that it plays a vital role in making renewable energy affordable in a territory grappling with high electricity rates and a deteriorating power grid.