AGP Executive Report

Puerto Rico Power Grid Accountability: A new federal audit says only 25% of about $14B in Hurricane Maria-era power-grid funds has reached Puerto Rico, with $2.7B of $11B obligated by FEMA disbursed—raising fresh questions about how long repairs and upgrades have dragged. Housing Finance Demand: With used homes often needing major work, FHA 203(k) rehabilitation loans are gaining traction in Puerto Rico, as used prices climb and inventory stays tight. Energy Infrastructure Update: Genera PR filed plans to retire two aging Yabucoa peaker gas turbines and repurpose the site with a 40-MW battery storage system, aligning with the Integrated Resource Plan and PREB approvals. Port and Logistics Move: Dredging has begun in Las Mareas Bay in Guayama to boost vessel cargo capacity and help keep coal flow steady to the AES plant. Disaster Relief Airlift: An alliance led by Aerostar and local partners sent the first flight from Luis Muñoz Marín Airport to Venezuela with nearly 7,000 pounds of medicine, food, generators, equipment, and infant supplies. Food Safety Watch: Morningstar Farms recalled multiple plant-based products in Puerto Rico due to possible plastic pieces.

Puerto Rico Tourism Boom: Disney Cruise Line’s Disney Destiny made its inaugural Port of San Juan call, with Puerto Rico Tourism Company projecting $1.6M+ in economic activity for local businesses and jobs, while Discover Puerto Rico reports hotel and short-term rental revenue topping $1B for Jan–May ($1.065B, +9%) and cruise arrivals up 45% (300,000+ passengers). Energy & Infrastructure Finance: The Puerto Rico Oversight Board pitched a $3B settlement offer to PREPA bondholders to close the Title III bankruptcy, aiming for about 35% recovery on $8.5B in claims and adding $1.4B beyond the current plan. Business Policy Push: Puerto Rico private-sector leaders wrapped a weeklong Washington mission to align on a federal agenda—tax reform, healthcare, economic development, manufacturing, and infrastructure—seeking technical guidance for a comprehensive tax overhaul. Energy Shock Watch: A CRECE analysis warns the 2026 oil shock could hit Puerto Rico harder than 2022 due to weaker growth conditions and added tariff pressures. Consumer & Travel Signals: Visa’s midyear outlook says consumers are adjusting to higher costs as business investment in clean energy and strategic industries offsets strain, and a travel roundup highlights San Juan as a July bargain destination under $750 round-trip. Relief Logistics (Regional): U.S. Southern Command says 900+ personnel are operating in Venezuela for earthquake response, with about 800 stationed in Puerto Rico and Curaçao supporting logistics.

Tourism & Cruise Growth: Puerto Rico welcomed Disney Destiny on its inaugural call to the Port of San Juan, with Puerto Rico Tourism Company officials projecting more than $1.6 million in economic activity from seven scheduled transit visits through July 2027, reinforcing San Juan’s push to attract major cruise lines. Tourism Revenue Milestone: Discover Puerto Rico data shows hotel and short-term rental revenue topped $1.065 billion for January–May 2026, up 9% year over year, alongside a 45% jump in cruise arrivals to more than 300,000 passengers. Energy & Public Finance: The Puerto Rico Oversight Board pitched a $3 billion settlement offer to PREPA bondholders as part of PROMESA Title III efforts to close the utility’s bankruptcy, aiming for roughly 35% recovery for non-consenting bondholders versus about 19% under the current plan. Local Governance & Infrastructure: Camuy sued DNER and the island government after a stop-work order halted $550,000 ARPA-funded coastal rehab work at Peñón Brusi, seeking injunctions and to overturn the June 24 order. Disaster Response Logistics: U.S. Southern Command said it deployed more than 900 personnel in Venezuela for earthquake relief, with about 800 based in Caribbean hubs including Puerto Rico, supporting search-and-rescue and restoring airport operations. Science & Fisheries Monitoring: New Puerto Rico shark research highlights using anal fins as a “biological logbook” to better track species and sizes in Caribbean fisheries.

Tourism & Shipping: Disney Cruise Line’s newest ship, Disney Destiny, made its first call in San Juan, with Puerto Rico Tourism Company projecting more than $1.6M in economic activity through July 2027—supporting local tour operators, transportation and tourism businesses. Energy & Environment: A coalition of environmental, community and religious groups is opposing New Fortress Energy’s request to dredge San Juan Bay to support methane/LNG operations, arguing it would expand activity despite alleged regulatory noncompliance and insufficient environmental review. Local Economy & Retail: Econo Supermarkets topped Consumer Radiography 2026 as Puerto Ricans’ preferred supermarket for main purchases (56%) and refills, with online supermarket spending rising and Econo to-go leading locally. Labor Policy: Puerto Rico’s House Bill 1115 would repeal the Minimum Wage Evaluation Commission (CESM), keeping the general minimum wage at $10.50 while shifting wage-setting power back to elected officials and creating a temporary advisory board for lagging sectors. Agriculture & Food Culture: A new look at Puerto Rico coffee farm experiences highlights guided tours and sustainable growing practices, positioning coffee as both an industry and a visitor draw. Public Safety (Out-of-Territory): Police in Texas arrested four men after a robbery and chase that ended in a crash, with suspected cocaine found—one suspect listed as from Puerto Rico. Defense & Logistics: The Puerto Rico National Guard is serving as a strategic bridge for humanitarian response in Venezuela, with PR Air National Guard personnel integrated into SOUTHCOM-led operations.

Retail & Consumer Choice: MIDA’s Consumer Radiography 2026 study says Econo Supermarkets is Puerto Ricans’ preferred main-purchase chain (56%), with Econo to-go leading local online shopping (22%) and online supermarket buying rising to 19% of shoppers. Fishing & Climate Resilience: A Grist/9 Millones report spotlights Culebra reef fishers adapting to climate change, with traditional landing-center infrastructure and daily survival tied to what’s happening in the water. Real Estate & Housing Market: Houzeo rolls out a new $399 flat-fee MLS seller plan with $0 at closing, positioning Puerto Rico as part of its broader platform push. Energy & Grid Communication: LUMA expands customer outreach with a new WhatsApp channel, aiming to improve how residents get updates. Local Business & Tourism: Puerto Rico’s Rum of Puerto Rico program lands first-ever MLB commercial partnerships with the Yankees, Mets, Rays and Marlins to boost year-round promotions across key U.S. markets. Labor Watch: Teamsters seek leverage as Penske contract talks near a June 30 deadline, with strike authorization reported. Sports (PR-linked): Canada’s Shai Gilgeous-Alexander headlines FIBA Americas qualifiers that include a Puerto Rico matchup in Hamilton.

Puerto Rico Rum Program: Gov. Jenniffer González Colón and DDEC announced historic commercial partnerships linking the Rum of Puerto Rico program with the New York Yankees, New York Mets, Tampa Bay Rays, and Miami Marlins, aiming to boost year-round promotion and fan experiences in major U.S. markets. Energy & Grid Modernization: LUMA Energy launched a new WhatsApp channel to share frequent updates on upgrades, modernization work, scheduled outages, and safety tips, as the utility pushes for a more reliable grid. Local Infrastructure Policy: The Senate approved a measure allowing municipalities to repair street lights on highways and streets via agreements tied to the electricity system operator, with the Energy Bureau retaining oversight. Housing & Finance: The San Juan PDP delegation denounced a $323.7 million bond issue approved by the Financial Oversight and Management Board, arguing it mainly refinances older debt and postpones costs to future residents. Banking Watch: Puerto Rico’s Birling Capital indexes showed resilience in the week ending June 26, with the PRSI up 4.88% while U.S. bank peers dipped. Tech-Driven Power Demand: A report highlights the rise of virtual power plants using home batteries and smart thermostats to help utilities manage heatwaves and data center surges.

Energy & Grid Modernization: LUMA Energy launched a new WhatsApp channel to share real-time updates on upgrades, modernization work, scheduled outages, and safety tips—aiming to boost transparency and customer communication. Power Market Innovation: A new push for “virtual power plants” is turning home batteries and smart thermostats into grid support during heatwaves and data-center demand spikes, reducing the need for new peaker plants. Public Lighting Governance: The Senate approved a measure letting municipalities repair and modernize street lights on highways and streets through agreements tied to the grid operator, with the Energy Bureau retaining oversight. Municipal Finance Debate: San Juan’s PDP delegation denounced a $323.7M bond issue approved by the oversight board, arguing it mainly refinances older debt and postpones payments onto future residents. Hospitality & Tourism: Hilton will open a new Hampton by Hilton in San Juan this September, adding another mid-market option in the capital as the brand expands across the American Caribbean. Food & Local Business: Wepa Cafe is expanding beyond Puerto Rican cuisine with a broader Latin American menu featuring new dishes from Peru, Cuba, Colombia and more while keeping core favorites. Aviation Costs Watch: Jet fuel prices have fallen sharply, but airlines say fares and fees won’t roll back, citing strong summer demand and tighter seat supply.

Hospitality Expansion: Hilton will open a second Hampton by Hilton in San Juan this September, adding another mid-market option in the city’s tourism core. Tourism & Environment: A study reports 88% of sand on eight Dominican Republic beaches comes from marine organism remains, warning that reef damage from pollution or extreme weather could slow natural sand production. Puerto Rico Food & Retail Growth: Trópiko, a Creole-inspired fast-food brand that started in Hato Rey, is expanding to Dorado and launching in Medellín, Colombia, aiming to export Puerto Rican flavors. Agroecology & Food Security: The El Josco Bravo School of Agroecology graduated 240 students across nine municipalities and launched a shared-tools program to keep projects going. Water & Infrastructure Data: A global map highlights where safely managed drinking water remains out of reach, with major gaps outside wealthy regions. Legal/Business Climate: Puerto Rico’s AG filed misdemeanor vandalism charges tied to alleged spray-painting of a shipping container in San Jose, Ponce. Industry & Travel: Norwegian Cruise Line adjusted a 2027 San Juan itinerary due to port availability, swapping Aruba for St. Maarten.

Puerto Rico Food & Farming: El Josco Bravo School of Agroecology graduated 240 students from a 20-week agroecology program across nine Puerto Rico municipalities, pushing food sovereignty and launching the BAM “Mutual Agroecological Spark Plugs” tool-sharing initiative to keep projects going. Puerto Rico Utilities & Water: Morovis and PRASA reached a settlement over ongoing water outages, aiming to stabilize service for residents. Puerto Rico Insurance: Cooperativa de Seguros Múltiples (CSM) won an A.M. Best upgrade to an “A” Financial Strength Rating with a stable outlook, citing strong capitalization and risk management. Puerto Rico Automotive Skills: Pep Boys named Alan M. Cruz Nieves to Puerto Rico’s Board of Examiners and Automotive Mechanics, reinforcing technician regulation and training standards. Puerto Rico Tourism & Growth: Trópiko, a Puerto Rican Creole fast-food brand, plans new expansion—an additional Puerto Rico location in Dorado and a new restaurant in Medellín, Colombia—targeting international demand. Puerto Rico Industry & Manufacturing: Puerto Rico’s sports tourism push continues as a growth engine, while local manufacturing and maker showcases tie into the America250 “made here” narrative.

Venezuela Earthquake Response: Florida Task Force 1 and 2 deployed 230 rescue workers, including Delray Beach and Jupiter firefighters, to support urban search-and-rescue and humanitarian relief after the twin quakes. Agroecology & Food Security: Puerto Rico’s El Josco Bravo School of Agroecology graduated 240 students from a 20-week program across nine municipalities, launching a tool-sharing BAM initiative to strengthen local farming projects. Local Food Brand Expansion: Trópiko, a Puerto Rico Creole-inspired fast-food chain, is pushing beyond the island with new locations planned in Dorado and Medellín, aiming to grow internationally. Insurance Stability: Cooperativa de Seguros Múltiples de Puerto Rico received an A.M. Best upgrade to an “A” rating with a stable outlook, citing strong capitalization and risk management. Auto Workforce Regulation: Pep Boys highlighted Alan Cruz Nieves’ appointment by the governor to Puerto Rico’s Board of Examiners and Automotive Mechanics, reinforcing technician oversight and training.

Puerto Rico Finance: Cooperativa de Seguros Múltiples (CSM) says A.M. Best upgraded its Financial Strength Rating to A (stable), citing strong capitalization and risk management. Automotive Workforce: Pep Boys Puerto Rico named Alan M. Cruz Nieves to the Governor’s Puerto Rico Board of Examiners and Automotive Mechanics, spotlighting technician training and regulation. Real Estate Expansion: Realty of America announced its Puerto Rico launch with a grand opening in San Juan and appointed Aixa Malavé to lead operations. Energy & Grid Oversight: A report says Puerto Rico’s solar and water systems contract faced scrutiny from the fiscal board, flagging flaws in oversight. Water & Utilities: Morovis and PRASA reached a settlement tied to ongoing water outages. Manufacturing & Industry: Anchor Hocking was featured in a national “American-Made 250” showcase that includes Puerto Rico, tying local production to broader U.S. manufacturing branding. Food Safety: MorningStar Farms issued recalls over possible plastic contamination, adding pressure on supply-chain controls.

Puerto Rico Real Estate Expansion: Realty of America announced its official expansion into Puerto Rico, holding a grand opening at the Caribe Hilton in San Juan and naming Aixa Malavé to lead the effort, as the firm reports rapid growth across the U.S. and the island. Industrial Policy & Manufacturing Support: NIST launched a Manufacturing Extension Partnership pilot program aimed at strengthening the industrial base, including work with Puerto Rico’s MEP network to accelerate adoption of advanced technologies like additive manufacturing and AI. Energy & Grid Oversight: LUMA and Genera face regulatory pressure after an Energy Bureau order tied to fuel costs, as the utility continues to navigate legal and contract disputes. Water & Public Services: Morovis and PRASA reached a settlement over ongoing water outages, while Puerto Rico’s fiscal board flagged flaws in a Housing Department contract involving solar and water systems. Tech & Payments: Moneta Payments expanded digital lead generation support for merchant services professionals, leaning on Meta ads to help small businesses find payment processing partners. Safety & Risk Lessons: A federal NIST report on Surfside’s Champlain Towers South found failures began weeks before collapse, underscoring the need for earlier detection and stronger building oversight.

Food Safety Recall: MorningStar Farms voluntarily recalled Buffalo Chik’n Nuggets and Hot & Spicy Sausage Patties due to possible plastic pieces, with sales reported in the U.S. and Puerto Rico; consumers are urged to check UPCs and “better if used before” dates and request refunds. Energy & Grid Governance: LUMA escalated its legal fight with Puerto Rico’s administration, alleging Gov. Francisco Domenech pressured officials to speed up cancellation of LUMA’s contract and push for a replacement operator. Water Infrastructure: Morovis and PRASA reached a court-supervised agreement to address long-running water outages tied to a federal lawsuit, with PRASA required to complete stabilization projects and submit quarterly progress reports. Local Business & Food Service: Golden Corral says it has six new units in development, including a Puerto Rico expansion, using a flexible “kit-of-parts” approach for builds and conversions. Industrial & Wastewater Maintenance: American Fiberglass Tank Repair highlighted engineer-driven FRP tank inspections and repairs for wastewater facilities, aiming to prevent downtime and extend asset life. Community & Workforce: T-Mobile’s Hometown Grants wrapped up with 26 final awards, totaling $22.8M invested across 500 projects in small towns and rural communities including Puerto Rico.

Energy & Grid Modernization: Sunrun, Tesla and Renew Home say they can deliver up to 16.8 GW of flexible distributed power via virtual power plants, drawing from home batteries, smart thermostats and EVs—explicitly including Puerto Rico homes among the potential device base. Environmental Cleanup & Land Reuse: The U.S. EPA awarded $2 million to Puerto Rico municipalities (Juana Díaz, Maunabo, San Germán and San Lorenzo) to assess, clean up and reuse contaminated land, aiming to unlock new investment and jobs. Local Food & Retail: PRoduce opened its first Miramar brick-and-mortar store after an $850,000 investment, pushing a 90% locally sourced model with delivery across the island. Hospitality & Business Events: PCMA’s Business Events Summit wrapped in Fajardo, highlighting how destination and event strategists can drive community impact beyond the meeting room. Food Service Ownership Update: Yum! Brands’ $2.7B Pizza Hut sale will not change Puerto Rico restaurant operations, according to sources and the company. Consumer Health & Regulation: Wisconsin and Hawaiʻi attorneys general praised Shopify’s move to ban all vaping product sales on its platform, following a coalition push. Industrial/Workplace Compliance: The EEOC sued O’Reilly Auto Parts over alleged failure to accommodate a disabled employee at a Michigan distribution center.

Cruise & Tourism Dealmaking: Registration opened for the FCCA Cruise Conference and Trade Show—set for San Juan, Puerto Rico (Oct. 12-16)—positioning the island as a Caribbean-LATAM hub for cruise executives, one-on-one meetings, and new destination/tour pitches. Energy & Grid Reliability: A report highlights Puerto Rico’s energy stakes as LUMA and PREPA-related coverage continues to focus on fuel costs and grid pressures, while broader regional energy moves underscore how reliability and logistics drive costs. Food Industry Compliance: MorningStar Farms issued a recall in the U.S., Puerto Rico, and Costa Rica for Buffalo Chik’n Nuggets and Hot & Spicy Sausage Patties due to possible plastic pieces, urging consumers to discard and seek refunds. Local Entertainment Economy: The José Miguel Agrelot Coliseum (“El Choli”) is profiled as a key live-entertainment engine for Puerto Rico’s tourism and ticketing market, with FY 2025-26 activity and capacity flexibility driving event volume. Water & Cost Pressures: Puerto Rico-linked coverage on water stress continues to surface as lawmakers and stakeholders push for help amid rising household burdens.

Food Safety & Retail: MorningStar Farms voluntarily recalled Buffalo Chik’n Nuggets (10.5 oz) and Hot & Spicy Sausage Patties (8 oz) over possible plastic pieces; products were sold in the U.S., Puerto Rico and Costa Rica, with refunds available via consumer affairs. Puerto Rico Economy & Jobs: Puerto Rico’s unemployment rate held steady at 5.6% in May 2026, with employment and labor force figures showing little month-to-month movement. Energy & Infrastructure: A new “capacity-as-a-solution” push from Sunrun, Tesla and Renew Home targets distributed power for grid congestion, with Puerto Rico mentioned among markets tied to energy logistics and power customers. Tourism & Industry: Puerto Rico is leaning harder on sports tourism, citing 2025 event growth and the 2026 World Baseball Classic’s economic impact for hotels, restaurants and transport. Local Business & Hospitality: Registration opened for the Caribbean and Latin America cruise industry conference in San Juan (Oct. 12-16), signaling more regional travel and dealmaking for Puerto Rico’s tourism ecosystem. Trade & Shipping: Great Lakes Towing christened its new tugboat “Puerto Rico,” underscoring ongoing maritime investment tied to port services and logistics. Public Health & Consumer Relief: “Cheque Pa’ Ti” tax relief is being discussed as a short-term economic breather after a tax reform proposal didn’t clear the oversight board.