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Puerto Rico's Prepa and free electricity given to 78 municipalities and the port authority- the practice dates back to 1941 by FDR appointed governor Rexford Tugwell

02/01/2016

Tugwell pulled together private electricity companies into a public company Prepa, which would not pay property taxes and instead provide free electricity to municipalities in lieu of property taxes. In 2016 the free electricity is estimated to increase government debt by $9 billion of $72 billion in total debt Puerto Rico cannot pay. The free electricity has led to such wasteful projects as an ice skating rink in Aguadilla, Puerto Rico.

Grouped Articles

How Free Electricity Helped Dig $9 Billion Hole in Puerto Rico

New York Times 02.01.2016

At Puerto Rico’s Power Company, a Recipe for Toxic Air, and Debt

New York Times 02.15.2016


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