The Department of Energy’s Office of Energy Dominance Financing closed a $489.4 million loan to lower electricity costs and strengthen Puerto Rico’s electric grid on Aug. 5.
The island faces rising electricity demand and enters the 2026 Atlantic hurricane season with a grid that has been under sustained reconstruction since Hurricane Maria devastated the territory in 2017, according to DOE. Puerto Rico’s residents pay some of the highest electricity rates in the United States while receiving some of the least reliable service.
The loan was closed by DOE’s financing office, which rebranded from the Loan Programs Office to the Office of Energy Dominance Financing under the Trump administration.
Puerto Rico’s grid is managed by LUMA Energy under a public-private partnership with the Puerto Rico Electric Power Authority. PREPA remains one of the most heavily indebted public utilities in U.S. history, and the island has experienced repeated blackouts since Hurricane Maria.
For 3.2 million U.S. citizens living in Puerto Rico, the federal loan addresses an infrastructure crisis that has affected daily life for nearly a decade. Power outages disrupt hospitals, schools, water treatment plants and businesses across the island.
The timing of the loan closing during peak hurricane season adds urgency. Puerto Rico’s grid remains vulnerable to storm damage, and a major hurricane strike could set back reconstruction progress.
Specific project components and construction timelines were not detailed in the DOE release. The loan terms, including interest rate and repayment schedule, were also not disclosed.