U.S. Government Extends Emergency Support for Puerto Rico’s Grid, Affecting New Fortress Energy

The U.S. Department of Energy (DOE) has prolonged emergency measures aimed at stabilizing Puerto Rico's electricity infrastructure, directly impacting the operations of New Fortress Energy's subsidiary on the island. The company's unit, Genera PR, which manages the territory's thermal power generation assets, will continue to function under a federally mandated framework.

On February 10, the DOE issued an extension for two emergency directives concerning the Puerto Rico Electric Power Authority (PREPA) grid. These orders are now authorized to remain in effect until May 11, 2026. Federal intervention has already contributed to increasing the system's total generation capacity to 6,460 megawatts (MW), with 820 MW of that capacity specifically restored through federal support.

The extension provides Genera PR with a degree of operational certainty. It permits PREPA to continue deploying critical generation units and to conduct extensive vegetation management around power lines. These actions are prioritized to bolster grid reliability ahead of the approaching hurricane season. For New Fortress Energy, the stability of cash flows from this region remains a crucial financial consideration.

Legal Dispute Clouds Financial Transparency

Beneath the surface of operational stability, a significant legal conflict is unfolding over PREPA's finances. Bondholders are applying pressure on the Financial Oversight and Management Board (FOMB) to disclose the data underlying a recalculation of the utility's net revenue.

Should investors sell immediately? Or is it worth buying New Fortress Energy?

The opposing sides present starkly different figures:
* Creditors cite reports indicating positive net revenues exceeding $3.7 billion through fiscal year 2023.
* The oversight board now contends the actual numbers are negative.

This dispute holds substantial importance for New Fortress Energy, as the company relies on PREPA's solvency to cover its operational expenses and service its own considerable debt load.

Long-Term Strategy Amid Uncertainty

Despite the unresolved financial tensions, New Fortress Energy is committed to its long-term position in Puerto Rico. A seven-year natural gas supply agreement, finalized in December 2025, is designed to transition the island's power plants to a lower-emission fuel source.

The current emergency orders are set to expire on May 11, 2026. The intervening period will reveal whether the technical progress in grid stabilization can be matched by a resolution of the ongoing financial and legal challenges.