H.R. 7833: Puerto Rican People’s Power Restoration Act of 2026

This bill, titled the Puerto Rican People’s Power Restoration Act of 2026, aims to make specific amendments to the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). Here are the key provisions of the bill:

Termination of the Oversight Board

The bill proposes that the existing Oversight Board, which is currently overseeing Puerto Rico’s financial management and recovery processes, would be terminated under specific circumstances. It states that the Oversight Board shall cease to exist after Puerto Rico enacts legislation that establishes a new entity to take over the functions of the Board. This means if Puerto Rico’s government creates a successor entity for the Oversight Board, the Board will be dissolved the day after that legislation is enacted.

Debtor Representation Changes

Another significant change involves how debtor representation is structured under PROMESA. The bill amends the section related to debtor representation as follows:

• The current Oversight Board will no longer be the representative for debtor cases once Puerto Rico has enacted legislation designating a new successor entity.
• The Puerto Rico Electric Power Authority (PREPA) or its designated successor will assume this role in cases initiated on or after the enactment of such legislation.
• Furthermore, unless the new legislation specifies otherwise, all professionals, advisors, and counsel previously engaged by the Oversight Board will continue to serve under the newly designated representative.

Maintaining Existing Fiscal Plans

The bill includes provisions that clarify that none of its amendments will:

• Change any requirements regarding the confirmation of fiscal plans under the existing PROMESA framework.
• Invalidate any fiscal plans or budgets that were certified before the enactment of this bill, until they are modified by the newly substituted representative or confirmed through a plan of adjustment.
• Affect the jurisdiction of the United States District Court for the District of Puerto Rico related to cases managed under PROMESA.

Overall, this legislation seeks to alter the management structure related to Puerto Rico’s financial recovery, specifically in terms of the Oversight Board's authority and the representation of debtors in legal processes.

Relevant Companies

• NEE (NextEra Energy, Inc.): As a major energy provider, changes in the representation of the Puerto Rico Electric Power Authority could impact its operations or relationships in the region.
• DUK (Duke Energy Corporation): If involved with energy infrastructure in Puerto Rico, the shift in management structures might affect contractual obligations and project developments.