Puerto Rico News Digest For August 26, 2015

ERIKA TO AFFECT PR TOMORROW

The effects of Tropical Storm Erika are expected to be felt starting to-
morrow at around noon, and the system should be passing about 10 mi-
les north of Fajardo tomorrow evening. The National Weather Service
has issued a Tropical Storm Warning for Puerto Rico, Vieques, Cule-
bra and the US Virgin Islands. As of 8:00 AM, the storm was located
at 16.2N 56.8W, about 335 miles east of Antigua, and had maximum
sustained winds of 45 mph. Erika is moving west at about 17 mph, and
registered a barometric pressure of 1005 mb. Some strengthening is still
expected to happen over the next several hours. The tropical storm is ex-
pected to produce 2-4 inches of rain over Puerto Rico.

2 PM UPDATE: Erika now not expected to strengthen significantly
over next couple of days. Winds not a concern for land, but rather po-
tential flooding. Per the latest advisory, winds are still 45 mph with
higher gusts, and the storm is still moving west at 17 mph. Latest
coordinates are 16.3N 58.2W. Hurricane Hunter aircraft is on its way
to investigate further.

Keep checking The Puerto Rico Monitor for updates on Erika.

CARRAIZO LEVEL UP, LA PLATA DOWN

The rains produced by the remnants of Tropical Storm Danny helped ra-
ise the level of  the Carraízo water reservoir by 30 centimeters this mor-
ning, with its level currently at  34.04 meters. According to Alberto Lá-
zaro, President of AAA, the island's water utility, Carraízo's level would
have to increase by 2 to 2 1/2 meters in order for the water rationing plan
to be reduced to two days without running water from the current three
day plan. Despite Carraízo's gains, the La Plata reservoir's level has dro-
pped to 34.67 meters, 3.67 meters away from being out of service.

GOV'T CONSIDERS PRIVATE ELECTRICITY

From The San Juan Daily Star:

The government plans to open up power generation to the private sector,
virtually ending the monopoly of the Puerto Rico Electric Power Authori-
ty under the five-year fiscal adjustment plan. An outline of the plan, obtai-
ned by the STAR, states that the government will complete PREPA’s res-
tructuring of its $9 billion debt. The outline also says that PREPA will
“open up power generation to private competition to reduce electricity ra-
tes over time.” The private advisers to the change will be Alix Partners,
Millstein and Co., and Cleary and Gottlieb.

PREPA DROPS PETROBRAS AS FUEL SUPPLIER

From Caribbean Business:

The Puerto Rico Electric Power Authority (Prepa) announced Tuesday it
has entered into new supply contracts for fuel oil and natural gas used in
its powerplants, tapping Freeport Commodities and Natural Gas Aprovisi-
onamientos, which are scheduled to begin deliveries Oct. 1.The power uti-
lity will buy fuel oil No. 6 from Freeport Commodities, while natural gas
used at its Costa Sur powerplant will be supplied by Natural Gas Aprovi-
sionamientos, saving Prepa about $55 million from its previous contracts,
and replacing Petrobas, its previous provider.

ORLANDO NO. 1 SPOT FOR PUERTO RICANS

From The Orlando Sentinel:

Central Florida was the top destination of Puerto Ricans moving to the
mainland two years ago, according to new U.S. Census Bureau figures
released Tuesday. More than 7,500 Puerto Ricans moved to the Orlando
area in 2013, and most of them -- about 6,200 -- came from San Juan, the
island's capital, according to the Census Bureau. The New York metro area
was the next most popular destination, and it was the more popular choice
for residents of  Puerto Rico's smaller cities.

Puerto Rico News Digest for August 13, 2015

CARRAIZO ALMOST OUT OF SERVICE

As a long drought continues to punish Puerto Rico, the Carraízo water
reservoir -- which serves much of the San Juan metro area -- has dropped
26 centimeters today, leaving it  3.34 meters away from being rendered as
inoperable. The La Plata reservoir went down 11 centimeters since yester-
day. Carraízo water customers are currently being subjected to three-day
water rationing due to the low levels. Levels for all major reservoirs are
shown in the above graph. Carraízo is on the far left.

GOV'T LAWYERS CONSIDER JANUARY SCENARIOS

From The San Juan Daily Star:

Government lawyers are analyzing all the possible scenarios to determine
which debt can be left unpaid and which can not. The recent default on a
$58 million debt of the Public Finance Corporation on Aug. 1 was actually
a calculated move because the government knows that bondholders had li-
ttle legal recourse because it is a moral obligation that depends upon a leg-
islative appropriation, sources said. Regarding other types of debt, bond-
holders can expect a recovery rate between 35 to 65% on a series of diffe-
rent bonds traded by Puerto Rico in the event of a default, according to in-
formation compiled by Bloomberg. The publication reported on data conta-
ining the most recent trading prices of bonds that aren’t insured against
default.

USDA: 13 CITIES DECLARED DISASTER AREAS

From Caribbean Business:

The U.S. Department of Agriculture (USDA) has designated 13 municipali-
tiesin Puerto Rico as primary natural disaster areas due to damages and lo-
sses caused by a recent drought. Those municipalities are Arroyo, Fajardo,
Patillas, Canovanas, Las Piedras, Río Grande, Carolina, Luquillo, Trujillo
Alto, Cayey, Maunabo, Yabucoa and Cidra. Farmers and ranchers in the fo-
llowing municipalities in Puerto Rico also qualify for natural disaster assis-
tance because their municipalities are contiguous. Those municipalities are
Aguas Buenas, Comerio, Loiza, Aibonito, Guayama, Naguabo, Barranquitas,
Gurabo, Salinas, Caguas, Humacao, San Juan, Ceiba, Juncos and San Loren-
zo.

PR PREPARES FOR MASS GAY WEDDING

From US News & World Report:

More than 60 gay couples are preparing to exchange vows at a mass wedding
in Puerto Rico, celebrating a U.S. Supreme Court ruling affecting the socia-
lly conservative U.S. territory, organizers said Wednesday.Most of the cou-
ples are Puerto Ricans, but others from Haiti, the Dominican Republic, Cuba
and Venezuela also are participating in the event scheduled for Sunday in
San Juan's colonial district. "This is a historic event for all of Puerto Rico,"
said organizer Ada Conde, an attorney who had filed a federal lawsuit seek-
ing to have her gay marriage recognized in the U.S. territory prior to the Su-
preme Court decision. "This is not a show. This is not a parade. This is a so-
lemn event to celebrate the fruit of our sacrifice." Conde said she anticipated
protests and noted that police officers would be posted at the ceremony.

Three Day Rationing For Carraízo Starts Next Week

Reservoir levels for today. Carraízo is on the left.

SAN JUAN (PRM) -- Amid Puerto Rico's worst drought in decades, the
water levels at the Carraízo  reservoir -- which serves a large part  of the
San Juan metro area -- continue to fall to dangerously low levels. This has
prompted the island's water utility, Autoridad de Acueductos y Alcantari-
llados, to extend the water rationing plan that Carraízo users have been
under for several weeks. According to AAA management, the Carraízo
reservoir level is now so low, that it may soon be rendered inoperative.

Starting next Wednesday, August 13th, running water will be shut off
for three days rather than the current two days, and will then be on for
one day. Of the two rationing zones the Carraízo service area is divi-
ded into, Zone B will be the first to be subjected to the three-day ratio-
ning, with Zone A following suit two days later. A map of the Carraí-
zo zones can be found below. No significant rainfall over the area is
expected for the time being, although the government announced yes-
terday that they will soon begin a program of cloud seeding, in hopes
of generating rain over the dwindling reservoirs of Carraízo, La Plata
and Cidra.