Puerto Rico’s Indebted Power Utility Adds to Island’s Problems

The Puerto Rico Electric Power Authority must repay $146 million over the next two months for a credit line used to buy oil to generate electricity.  Credit Dennis M. Rivera-Pichardo for The New York Times

dealbook.nytimes.com - by Michael Corkery - July 1, 2014

Puerto Rico’s electrical utility is running out of money and time to negotiate a deal with its lenders, part of a broad reckoning for an island that relies on Wall Street to finance some of its most basic functions.

The Puerto Rico Electric Power Authority must repay $146 million to Citigroup over the next two months for a credit line used to buy oil to generate electricity. It is also uncertain whether the authority will be able to renew a $550 million credit line from Scotiabank for fuel purchases, people briefed on the matter said.

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