Puerto Rico's government sues private power company as chronic outages damage appliances
The civil lawsuit by the consumer affairs department says the Luma company, which oversees power transmission and distribution in Puerto Rico, was 'negligent' and is responsible for damages caused to consumer appliances by outages and power fluctuations.
It said the department has the authority to take cases to court to protect those affected by the company's 'inefficiency and lack of adequate service.'
The action was filed against the company as a whole since the law exempts Luma's employees and contractors from claims filed by customers under an immunity granted in 2021 by Puerto Rico's Energy Bureau.
The suit cited a recent Luma statement at a public hearing that the company has rejected 1,828 claims. 'It's time for Luma to be fully accountable to Puerto Rican consumers,' it said.
Luma said in a brief statement that it would treat the lawsuit with the seriousness and responsibility it deserves.
'Our commitment is to continue working for the benefit of our customers, despite the significant challenges we face in operating a fragile and deteriorating electrical system, which for years has lacked the necessary maintenance and investment,' it said.
Monday Mornings
The latest local business news and a lookahead to the coming week.
The outages have damaged thousands of appliances ranging from air conditioners to refrigerators on the island of 3.2 million people with a 40% poverty rate.
The lawsuit comes months after Puerto Rico's governor promised to cancel Luma's contract, warning it would be a long and complex process.
Anger against Luma has been growing ever since it signed a contract with Puerto Rico's government in 2020.
Outages remain common after Hurricane Maria razed Puerto Rico's electric grid when it hit the island as a powerful Category 4 storm in September 2017. But the grid was already frail following a lack of investment and maintenance for decades by Puerto Rico's Electric Power Authority, which is struggling to restructure $9 billion in debt.
Two island-wide blackouts hit the island in recent months, including on New Year's Eve and during Easter Week.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
22 minutes ago
- Toronto Star
Ferrari renews team principal Fred Vasseur's contract despite a difficult F1 season
BUDAPEST, Hungary (AP) — Ferrari handed team principal Fred Vasseur a new contract on Thursday in a sign of 'trust in Fred's leadership' following speculation about his future, with the Italian team yet to win a Formula 1 race in 2025. In an announcement ahead of the Hungarian Grand Prix, Ferrari said the new deal was a 'multiple-year contract,' without giving further details. Lewis Hamilton gave Vasseur his backing last month after reports in Italian media suggested his job could be in question.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Ferrari renews team principal Fred Vasseur's contract despite a difficult F1 season
BUDAPEST, Hungary (AP) — Ferrari handed team principal Fred Vasseur a new contract on Thursday in a sign of 'trust in Fred's leadership' following speculation about his future, with the Italian team yet to win a Formula 1 race in 2025. In an announcement ahead of the Hungarian Grand Prix, Ferrari said the new deal was a 'multiple-year contract,' without giving further details. Lewis Hamilton gave Vasseur his backing last month after reports in Italian media suggested his job could be in question. Ferrari last won a race in October and neither Hamilton nor Charles Leclerc has consistently been able to challenge the leading McLaren drivers. 'Today we want to recognize what has been built and commit to what still needs to be achieved,' Ferrari chief executive Benedetto Vigna said in a statement. 'It reflects our trust in Fred's leadership — a trust rooted in shared ambition, mutual expectations and clear responsibility. We move forward with determination and focus, united in our pursuit of the level of performance Ferrari has to aim for.' Vasseur joined Ferrari as team principal at the start of 2023. He was Hamilton's team boss in junior series in the mid-2000s and played a role in convincing the seven-time champion to leave Mercedes for Ferrari for 2025 in a move which shook up F1. Vasseur also previously worked with Renault and Sauber in F1. Hamilton, who hasn't finished on the podium in a Grand Prix race since joining the Italian team, has been holding meetings with senior executives to push for improvements and a voice in developing the team's car for 2026. Thursdays Keep up to date on sports with Mike McIntyre's weekly newsletter. ___ AP auto racing:
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Australian court rejects X Corp.'s appeal in child safety case, orders legal costs
MELBOURNE, Australia (AP) — An Australian appeals court on Thursday ruled against X Corp., rejecting a challenge to a safety watchdog's demands for details on how the Elon Musk -owned company was combating widespread child exploitation material on its platform. Three federal court judges unanimously rejected X's appeal against a federal court decision in October last year that the company was obliged to respond to a notice from eSafety Commissioner Julie Inman Grant on child abuse material being shared on X, which is incorporated in Texas. The judges also ordered X to pay the commissioner's legal costs. Inman Grant's office describes itself as the world's first government agency dedicated to keeping people safe online. Inman Grant has driven world-first legislation that will ban Australian children younger than 16 from social media platforms including X from December. The federal court case goes back to early 2023, when Inman Grant asked some of the world's largest technology companies to report on what they were doing about child abuse material appearing on their platforms. A reporting notice, issued under Australia's Online Safety Act, was sent to Twitter Inc., incorporated in Delaware, in February that year. Twitter merged with X the following month. X arguments against complying with Inman Grant's order included that Twitter no longer existed as a legal entity and that X did not carry its predecessor's regulatory obligations in Australia. Inman Grant, a former Twitter employee, welcomed Thursday's ruling. 'This judgment confirms the obligations to comply with Australian regulations still apply, regardless of a foreign company's merger with another foreign company,' she said in a statement. She said her agency would continue enforcing the Online Safety Act and 'holding all tech companies to account without fear or favor, ensuring they comply with the laws of Australia.' 'Without meaningful transparency, we cannot hold technology companies accountable,' she said. X lawyer Justin Quill said he had not yet read the appeals court judges' reasons and could not comment on the possibility of a High Court appeal. The High Court only hears around 10% of appeal applications, so the federal court full-bench decision could be final in X's case. X's media office did not immediately respond to an email request for comment on Thursday. In 2023, Inman Grant's office fined X 610, 500 Australian dollars ($385,000) for failing to fully explain how it tackled child exploitation content. X's response was considered incomplete or misleading. X refused to pay and the penalty is the subject of a separate and ongoing federal court case.
