Wednesday, January 24, 2018
Who Would Buy It?
The governor of Puerto Rico says he is going to sell the power authority to private interests. Given its reputation, who would buy it? The electrical grid on the island was a disaster before the hurricanes. The generation plants are old and inefficient. Power delivery was chaotic and episodic. It will need a deep-pocket investor to take on the problems and make money. The governor will find someone eventually, but he shouldn't expect to get top dollar for selling it. It is more likely a giveaway. The result of a poor reputation is a lower price. One positive point for the power authority. It is getting new poles and wires from the reconstruction after the storm. That won't help the power plant which needs to be modernized or replaced.
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