Puerto Rico’s Record Electric Rate Takes Effect Amid Rising Costs and Ongoing Outages

Puerto Rico's new electric rate hits record highs, impacting millions as outages persist and costs soar.

October 1, 2026 One Min Read

POLICY WIRE — San Juan, Puerto Rico — A historic increase in electricity rates took effect on Thursday in Puerto Rico, adding to the financial strain on residents as power outages continue and the island’s aging grid remains in disrepair.

The adjustment means a typical household using 800 kilowatt-hours monthly will face an 18% rise in their bill, from $229 to $271, as approved by the Puerto Rico Energy Bureau. The new rate of 33.86 cents per kilowatt-hour is significantly higher than the U.S. average of 18.3 cents for residential customers.

Luma Energy, responsible for power distribution, said the increase is necessary due to rising energy demand, volatile oil prices, and reliance on more costly fuel sources. The rate hike is expected to further burden the island’s 3.2 million residents, with over 40% living below the poverty line.

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The decision comes amid ongoing power disruptions, including a recent fire at a substation that left 200,000 people without electricity. The grid, already weakened by years of underinvestment, was severely damaged during Hurricane Maria in 2017.

The Energy Bureau also denied passing on $17.6 million in costs linked to alleged fuel supply failures by New Fortress Energy. Meanwhile, Luma and Genera PR are involved in legal battles over contracts as the government seeks to restructure its $9 billion debt load.

Reporting by Policy-Wire (PW)

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