Puerto Rico has struggled with high costs and lack of local control over its energy system for decades. In the 1940s, a federally appointed governor gave municipalities free electricity, costing customers heavily. More recently, a federal control board stripped Puerto Rico of financial autonomy as part of an economic oversight program. The board also imposed the highest sales tax in the nation to repay hedge fund creditors. The document argues that decentralizing ownership of renewable energy projects to the community level would increase local benefits in Puerto Rico by creating more jobs and greater economic impact compared to privately or federally controlled systems.

1. Energy
Democracy for
Puerto Rico
John Farrell, Co-director, ILSR

2. 1940 20192005 2016
Last federally appointed
governor gives free electricity to
municipalities; costing each
customer $123 in 2016
“Semi-colonial”
PROMESA board
strips local financial
control
End of federal manufacturing
tax incentives starts 10-year
economic downturn
2019
PROMESA applies
highest state sales tax
in nation (11.5%) to
repay hedge fund
creditors
1940s
☹ COLONIALISM

3. ☹ PRIVATIZATION
Accountability?

4. ! SCALE

5. ! SCALE

6. Community Ownership Increases Local Benefits
Jobs by Project Ownership Economic Impact by Project Ownership
! OWNERSHIP

7. Community Ownership Increases Local Benefits
! OWNERSHIP

8. The rules must allow communities to choose
www.ilsr.org