AGP Executive Report

Electricity Costs: Puerto Rico’s Energy Bureau approved a record residential rate of 33.86 cents per kWh, about an 18% jump for an 800 kWh monthly user, as outages persist and LUMA cites higher fuel costs, demand, and reliance on costlier generation. Energy & Safety: Fort Buchanan marked Fire Prevention Week by spotlighting lithium-ion battery hazards and safe charging, storage, and handling. Power Grid & Industry: PREPA’s broader strain continues to shape business conditions, while local companies keep adapting to outages and higher operating costs. Drug Pricing Accountability: A coalition of state attorneys general is seeking court approval of a $400 million settlement with Sandoz over alleged generic-drug price-fixing and reduced competition, with Puerto Rico tied to the wider enforcement landscape. Logistics & Aviation: The NTSB released a preliminary account of a deadly Amazon cargo crash at Miami International, pointing to factors including speed, braking use, and missing wind info—relevant to regional shipping and air-freight risk management. Workforce Development: DDEC awarded nearly $1 million in WIOA funds to Nuestra Escuela Inc. for a pilot to help 75 young people finish high school and build job skills. Tourism & Culture: Miss Universe 2026 unveiled its 75th anniversary stage concept for the Nov. 24 show at Coliseo de Puerto Rico José Miguel Agrelot.

Workforce & Education: Puerto Rico’s DDEC approved $999,975 in WIOA funds for Nuestra Escuela Inc. to run “Construyendo Nuestro Futuro,” helping 75 young people finish high school and build job skills in Caguas, Loíza and nearby municipalities. Energy & Public Safety: DHS opened a nearly $22M joint facility in Ponce for CBP and Coast Guard air-and-marine operations, boosting maritime safety, inspections, and emergency readiness. Retail & Consumer Services: Farmacias Caridad says it’s continuing expansion after acquiring CVS assets, now operating 50 locations and adding digital offerings to meet e-commerce trends. Infrastructure & Local Government: A new $250,000 allocation supports design and drainage analysis for flood-prone street improvements in San Jose, with a larger project cost expected. Business Growth Despite Drought: Autocare is pressing ahead with a $6M Santurce automated car wash and plans more openings, citing added water logistics during drought. Legal/Markets: A Puerto Rico federal judge rejected efforts to dismiss Puerto rebar price-fixing claims tied to construction contracts. Logistics: USPS released 2026 holiday mailing and shipping dates, including recommended cutoffs for Puerto Rico and U.S. territories. Hospitality Investment: Nobu announced its first Puerto Rico hotel and restaurant in San Juan, a 50-room project slated for 2028. Cybersecurity Debate: “On The Record” called for an independent review of reported AI security incidents involving autonomous agents and clearer incident-disclosure rules.

Maritime Security in Ponce: DHS opened a nearly $22M joint facility at the Port of Ponce, bringing together Coast Guard inspection operations and CBP Air and Marine unit capabilities to strengthen maritime safety and border enforcement in southern Puerto Rico. Construction Antitrust: A Puerto Rico federal judge refused to dismiss price-fixing claims brought by construction companies and consumers, pointing to instant messages tied to the alleged rebar scheme. Energy & Utilities Watch: LUMA warned of a deepening liquidity crisis and sought a $30M emergency reserve as PREPA’s bankruptcy moves into a new phase, while separate coverage flags electricity cost pressure on local restaurants. Local Business & Growth: Tommy’s Express Car Wash was named a 2026 Industry Icon Top Franchise, highlighting its rapid expansion and the brand’s first Puerto Rico location. Food Safety: FDA assigned a Class I recall to Salata Salad Kitchen Jalapeño Avocado Dressing over possible Salmonella contamination, affecting distribution in Georgia, North Carolina, and Texas. Agriculture & Health: CDC declared an end to 2026 backyard poultry Salmonella outbreaks, with Puerto Rico included in the final toll of 1,253 illnesses. Culture & Community: A Puerto Rican drum-and-dance group, Bomba de Aquí, opened a Strand Family Series run with performances centered on Afro-Puerto Rican traditions.

Tourism & Hospitality: Nobu is bringing its first Puerto Rico hotel and restaurant to San Juan, with a planned 2028 opening and a rooftop lounge plus street-level Nobu dining. Energy & Infrastructure: Puerto Rico’s PREPA-linked power work stays in the spotlight as Lantheus wins CMS Transitional Pass-Through status for PYLARIFY TruVu (effective Oct. 1, 2026), while separate coverage highlights PREPA’s ongoing battery progress and broader energy modernization. Defense & Tech: The U.S. Naval Research Laboratory demonstrated an autonomous sonar system to detect unexploded ordnance at a Vieques munitions site, a step toward real-world UXO response. Local Industry & Jobs: Lares is reeling after Eagle Industries del Caribe’s closure, leaving 300+ workers without jobs, even as officials point to new garment-related manufacturing plans. Food Safety: FDA assigned a Class I recall to Salata Salad Kitchen Jalapeño Avocado Dressing over possible Salmonella contamination, affecting distribution in Georgia, North Carolina, and Texas. Public Health: CDC says a Salmonella outbreak tied to backyard poultry flocks is over, with cases reported across 46 states and Puerto Rico. Business & Finance: Puerto Rico tourism stakeholders are convening to set priorities and improve coordination through the Chamber of Commerce’s tourism committee. Real Estate: Tyler Perry listed his Beverly Hills estate for $57M as he prepares to relocate to Puerto Rico.

Tourism Coordination: Puerto Rico Chamber of Commerce convened 50+ tourism players in Isla Verde to set sector priorities and improve coordination with the Puerto Rico Tourism Company and Discover Puerto Rico. Healthcare Construction: Mennonite Health System broke ground in Aibonito on a $51.8M expansion backed largely by federal CDBG-MIT funds, aiming to boost capacity for the mountain region. Energy & Power Contract Fallout: Flotek Industries’ Puerto Rico Electric Power Authority (PREPA) temporary power deal remains tied up in investor litigation, with legal filings and deadlines moving forward. School Food Funding: A federal bill would permanently raise school meal reimbursement rates, with Puerto Rico and other territories already receiving higher rates due to local costs. Cement & Construction Demand: New market data shows U.S. and Puerto Rico cement shipments at 8.936M tonnes in May, with Puerto Rico included in the mix. Logistics & Holidays: USPS reiterated 2026 holiday mailing deadlines, including earlier recommended dates for Puerto Rico and other territories.

Puerto Rico Energy Costs: The Puerto Rico Restaurant Association (ASORE) warns a potential electricity-rate hike could add roughly $1,000 a month to restaurant bills, pushing energy costs up 25%–30% as eateries already juggle higher diesel, gas, water, and rent. Disaster Recovery Funding: FEMA approved more than $71M for Puerto Rico recovery and resilience projects, including nearly $43M in Public Assistance and over $28M via Hazard Mitigation, with major allocations for pier repairs in Humacao and bridge work. Construction & Materials Watch: Cement shipments in the U.S. and Puerto Rico totaled 8.936M tonnes in May, up 0.3% year over year, while blended cement shipments fell 1.5%—a mixed signal for construction demand. Local Infrastructure Projects: Gov. Jenniffer González-Colón said FEMA obligated $87.1M for 47 reconstruction efforts, including PREPA street-light modernization and Punta Santiago Pier permanent work. Maritime Safety: A boat capsized in the Mona Passage west of Puerto Rico; the Coast Guard reported at least 40 rescued and two deaths, with more people unaccounted for. Tech & Education: A sixth-grader in Oregon is using satellite imagery and machine learning to identify lithium deposits, reflecting growing interest in mineral exploration tools.

Puerto Rico Energy: Puerto Rico is suing NFEnergía (subsidiary of New Fortress Energy) to force an alternative natural gas supply mechanism for PREPA after gas deliveries stopped and Units 5 and 6 shifted to diesel, raising fuel-cost concerns. Disaster Recovery: Gov. Jenniffer González-Colón announced FEMA has obligated $87.1M for 47 reconstruction projects, including $38.0M for PREPA street-light modernization and $9.2M for the Punta Santiago Pier in Humacao. Construction Tech: Ferrovial is using autonomous compaction rollers on a $239M Aguadilla runway project, aiming for precise, continuous soil compaction with one operator supervising multiple machines. Aquaculture & Tourism: Maricao’s fish hatchery is set for $13.2M rehabilitation after Hurricane Maria damage, with design ~80% complete and FEMA approval needed before construction. Health & Pharma: FDA approved Eli Lilly’s once-weekly basal insulin Onswik for adults with type 2 diabetes, cutting annual injections from ~365 to 52. Healthcare Data: TestWell launched a free Blood Test Price Index comparing all-in costs for 171 tests across 12 providers, updated as prices change. Business/Legal: A New York judge ruled Epstein survivors can pursue most claims against FirstBank Puerto Rico for alleged complicity.

Energy Storage & Grid Reliability: PREPA’s governing board approved a 100MW/400MWh four-hour battery contract for Yabucoa Energy, moving the project forward after the Puerto Rico Energy Bureau required contractual and long-term capacity conditions; the deal still needs review by the Financial Oversight and Management Board before execution. Tourism & Local Development: Puerto Rico officials broke ground on the $6.1M Hotel Ojo de Agua in Rincón, funded with CDBG-DR dollars, targeting 16 rooms and about 46 direct jobs over an estimated 365-day build. Hospitality Expansion: A separate local investment update says a company is putting $12M into a sterilization service in Puerto Rico, adding to the island’s industrial services footprint. Industry & Capital Markets: Shareholder-rights firms renewed attention on Flotek Industries’ securities fraud case tied to its Puerto Rico Electric Power Authority project, with an October 26 lead-plaintiff deadline. Disaster Preparedness Supply Chains: Grainger’s fifth annual Bucket Build will deploy disaster relief kits that include potential distribution to San Juan, Puerto Rico.

USPS Holiday Shipping: USPS says Puerto Rico and U.S. territories should mail by Dec. 16 for Ground Advantage to arrive before Dec. 25, with Dec. 17/18/19 deadlines for First-Class, Priority, and Priority Mail Express—full military and international “mail-by” dates arrive in mid-October. Healthcare Infrastructure: Gov. Jenniffer González-Colón and HHS Sec. Robert F. Kennedy Jr. inaugurated the Vieques Health Center (Susana Centeno Hospital), a $85.5M project (including $48.3M FEMA) restoring hospital-level services after Hurricane Maria. Medical Manufacturing Expansion: Puerto Rico firm Customed Inc. will invest $12M in Fajardo to expand sterilization capacity, adding 35 jobs and boosting the local medical device supply chain. Energy Governance Watch: A report alleges Puerto Rico’s energy czar Josué Colon Ortiz pressured staff to sign a nearly $6B grid agreement as deadlines neared, raising questions about contract handling. STEM Spotlight: Jamestown High freshman Isabel Rossi reached national STEM finals for earthquake sensor placement research, competing in Washington, D.C. for $100K+ in prizes.

Healthcare Infrastructure: Gov. Jenniffer González-Colón and HHS Sec. Robert F. Kennedy Jr. inaugurated the new Vieques Health Center (Susana Centeno Hospital), a $85.5M project with $48.3M in FEMA support, restoring hospital-level care for nearly 8,000 residents after Hurricane Maria. Local Manufacturing & Jobs: Customed Inc. will invest $12M in Fajardo to expand medical-product sterilization capacity, adding 35 jobs and boosting the island’s supply-chain capability for device manufacturers. Energy Governance Watch: Puerto Rico’s energy czar Josué Colon Ortiz faces fresh scrutiny over reports that he pushed staff to sign a nearly $6B electric-grid contract as an August deadline neared. STEM & Talent Pipeline: Jamestown High freshman Isabel Rossi, 14, is a finalist in the Thermo Fisher Scientific Junior Innovators Challenge for earthquake sensor placement research, earning a spot in Washington, D.C. Logistics/Consumer Ops: USPS reiterated 2026 holiday shipping deadlines, including Dec. 16 for Ground Advantage to Puerto Rico and U.S. territories.

Medical Manufacturing: Customed Inc. will invest $12 million in Fajardo to expand sterilization capacity for medical products, adding specialized chambers and support systems; the project is expected to create 35 jobs. Disaster Recovery: Resident Commissioner Pablo José Hernández announced nearly $43 million in FEMA Public Assistance funds for recovery and infrastructure repair across 18 Puerto Rico municipalities, including roads, bridges, water systems, and electrical infrastructure. Energy Governance: Puerto Rico’s energy czar Josué Colon Ortiz faces fresh scrutiny over reports that he urged staff to sign a nearly $6 billion electric grid deal as an August deadline neared, raising questions about process and oversight. Local Policy & Industry: Puerto Rico truckers warn of service cuts if fuel surcharges aren’t paid, highlighting pressure points in logistics costs. Public Works & Compliance: Puerto Rico’s oversight board flags that the island’s lobbying laws lag behind the rest of the country, pointing to governance and compliance gaps.

Medical Manufacturing Expansion: Customed Inc. will invest $12 million in Fajardo to expand sterilization capacity for medical products, adding about 35 jobs and new sterilization chambers and support infrastructure. Federal Recovery Funding: Resident Commissioner Pablo José Hernández announced nearly $43 million in FEMA Public Assistance for recovery and infrastructure repair across 18 Puerto Rico municipalities, including roads, bridges, water systems, and electrical infrastructure. Energy Governance Scrutiny: Reports allege Puerto Rico’s energy czar Josué Colon Ortiz pushed subordinates to sign a nearly $6 billion grid deal as deadlines neared, raising questions about contract pressure and oversight. Healthcare Policy Watch: Puerto Rico has applied to join CMS’s voluntary “GENEROUS Model” for Medicaid drug pricing, with participation agreements due by Sept. 30 and potential impacts on coverage and net prices. Logistics & Retail Timing: USPS set 2026 holiday mailing/shipping deadlines, including guidance for shipments to Puerto Rico and U.S. territories. Local Business & Jobs: Puerto Rico’s economy also gets a boost from the Customed expansion, while broader supply-chain and energy decisions remain in the spotlight.

FEMA Funding Boost: Resident Commissioner Pablo José Hernández announced nearly $43 million in FEMA Public Assistance for recovery and infrastructure repair across 18 Puerto Rico municipalities, targeting roads, bridges, electrical systems, public buildings, and water projects. Local Energy & Industry Oversight: Puerto Rico’s lobbying laws are lagging, according to an oversight board review, raising pressure for stronger transparency as major projects and contracts move forward. Pharma Manufacturing Moves: Vicapsys Life Sciences said it completed a reverse merger with Stateline Distributors of Puerto Rico and formed an advisory board to guide strategy, including a planned Puerto Rico manufacturing facility. Tourism Contract Dispute: Puerto Rico Tourism Company escalated the Miss Universe 2026 conflict by sending a cease-and-desist letter to Nawat Itsaragrisil over alleged misleading claims tied to public money and contracting. Logistics Reminder: USPS reiterated 2026 holiday mailing and shipping deadlines, including earlier recommended cutoffs for shipments to Puerto Rico and U.S. territories. Puerto Rico in U.S. Courts: A DOJ case highlighted a Puerto Rico-based bank CEO sentenced to over nine years for fraud and sanctions evasion, underscoring accountability for executive misconduct.

Pharma & Manufacturing: Vicapsys Life Sciences says it has formed an advisory board after completing its reverse merger with Stateline Distributors of Puerto Rico and is positioning for a NitroMist relaunch plus a planned Puerto Rico manufacturing facility. Healthcare Policy: CMS participation in the GENEROUS Medicaid drug-pricing model is now rolling out across states and Puerto Rico, with agreements due by Sept. 30 and potential knock-on effects for coverage and drug access. Power & Logistics: Puerto Rico truckers warn they may cut service if fuel surcharges aren’t paid as diesel prices jump more than 70% amid LNG supply disruptions and shipping disputes. Energy & Grid Costs: A former Puerto Rico AG is urging New Fortress Energy to reimburse Puerto Rico for higher-cost diesel used during stalled LNG deliveries, as the island’s power plants switch fuels. Local Industry Impact: A new study commissioned by Grace Health Puerto Rico estimates the hospice sector generates about $142M in economic activity and supports 1,417 jobs, with potential healthcare cost benefits. Agriculture: Governor Jenniffer González-Colón announced an expanded USDA drought disaster declaration, adding municipalities eligible for federal farm assistance. Shipping Deadlines: USPS set 2026 holiday mailing recommendations, including earlier dates for Puerto Rico and U.S. territories. Business & Community: Puerto Rico Hospital Supply (PRHS) says it is expanding its sterilization subsidiary, Customed, to boost ethylene oxide capacity.

Pharma & Manufacturing: Vicapsys Life Sciences completed a reverse merger with Stateline Distributors of Puerto Rico, positioning the specialty wholesaler to expand drug distribution via a 50-state title model and a Puerto Rico manufacturing push that includes a planned acquisition tied to NitroMist. Healthcare Economy: A new study says Puerto Rico’s hospice industry generates about $142M in economic activity, supports 1,417 jobs, and estimates $1.19 in benefits for every $1 invested. Local Business Expansion: Puerto Rico Hospital Supply (PRHS) said it’s expanding its manufacturing subsidiary Customed to boost ethylene oxide capacity. Agriculture & Risk: Gov. Jenniffer González-Colón announced USDA expanded the island’s drought disaster designations, adding municipalities eligible for federal Farm Service Agency emergency loans. Energy/Logistics Pressure: Puerto Rico truckers warned they may cut service if fuel surcharges aren’t paid as diesel costs jumped more than 70% year over year. Tourism Oversight: The Puerto Rico Tourism Company submitted requested documents to the Senate on the agreement to host Miss Universe in November. Research Funding: The Puerto Rico Science, Technology and Research Trust will invest $1.12M through its 2026 Catalyzer grants for 16 local research projects. Housing Finance: The Federal Home Loan Bank of New York launched a $10.3M Housing Impact Grant round that includes Puerto Rico, supporting affordable home creation/preservation.

Puerto Rico Energy & Ports: A tug-and-berthing dispute between New Fortress Energy and the San Juan Bay Pilots escalated in federal court, with the delay forcing the San Juan power plant to burn diesel instead of natural gas—raising costs for ratepayers. Local Policy & Transparency: Puerto Rico’s Oversight Board executive director Robert Mujica Jr. urged lawmakers to modernize lobbying rules, warning that contingency fees and contract extensions leave public procurement without the independent review PROMESA provides. Tax & Fuel Costs: Business groups (including the United Retailers Center) pushed the Senate to cut and phase out the “crudita” excise tax, arguing it ripples through transportation, deliveries, distribution, and supplier costs. STEM & Workforce Pipeline: NSF’s Arecibo C3 opened two new lab spaces and a makerspace at the Arecibo Observatory Historic District, expanding hands-on biotech and engineering learning for students and educators. Industry & Consumer Impact: Sizzler Puerto Rico rolled out lower-price buffet options for families and students amid higher living costs. Business & Infrastructure: Infinigen secured $33M tax equity for the Yabucoa Solar Project and added $26M for a future battery storage build at the same site. Trade & Logistics: USPS recommended 2026 holiday mailing/shipping dates for Puerto Rico and U.S. territories to help packages arrive before Dec. 25.