Puerto Rico is burning oil to generate electricity: It’s completely insane.

PREPA, the troubled Puerto Rico Electric Power Authority, is having difficulty coming up with the money to pay for its latest petroleum delivery. As Caribbean Business reported, the utility last week decided to take cash from its capital works fund—up to $100 million—to buy oil. Usually, PREPA would use existing lines of credit to make such purchases. But the recent downgrades of Puerto Rico’s public debt have made that more challenging.Puerto Rico has a host of problems. Its economy has been in recession since 2006, and investors are fretting that it may not be able to make good on its $70 billion in municipal bonds. A goodly chunk of its population has decamped to Florida. In the scheme of things, borrowing from an infrastructure fund to pay for fuel oil seems like a drop in a very large bucket.Nonetheless, WTF? Why is Puerto Rico buying $100-per-barrel oil to make electricity?There are lots of ways to generate electricity. You can burn fossil fuels like coal, or natural gas, or oil. You can harness the power of rushing water, or the light of the sun, or the wind. You can burn biomass, or garbage waste. Or you can tap landfills for methane gas.

via Puerto Rico is burning oil to generate electricity: It’s completely insane..

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