Puerto Rico Electric: AlixPartners CRO contract extended to July 15

By Caroline Salls

Pittsburgh, April 16 – Puerto Rico Electric Power Authority said AlixPartners’ contract related to the utility’s comprehensive transformation process has been extended.

According to a news release, the automatic extension, which is a component of the existing agreement, will carry through to July 15, allowing Lisa Donahue and her team to continue providing services as the chief restructuring officer.

The authority said the extension calls for an additional payment to AlixPartners of up to $3.89 million, which is consistent with the current monthly cost in the contract.

In addition to the original terms of the agreement, AlixPartners has been mandated to research, analyze and produce assessments for both the transmission and distribution (T&D) and information technology systems. These assessments must be delivered within four weeks of the authority’s approval of no more than $300,000 in additional resources and agreed start dates.

The authority said it may need a further extension of the AlixPartners contract to complete the transformation.

“It is important for PREPA to keep the continuity and forward movement of the process uninterrupted at this time,” authority board president Harry Rodriguez said in the release.

“Today’s contract extension will allow PREPA to deliver a business plan to its creditors as agreed.”

According to the release, AlixPartners is working with authority management on several initiatives that will provide cost savings, operational efficiencies, improved customer service and a safe workplace for employees.

To date, the authority said it has already obtained roughly $130 million in both one-time cash and recurring savings from these improvements. The authority said several work streams are also in progress are to provide key inputs for the business plan, which is expected to be delivered to creditors in June.

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