AGP Executive Report

Energy & Governance: Puerto Rico Gov. Jenniffer González-Colón was elected Chair of the Southern States Energy Board, highlighting battery storage, generation upgrades, and grid modernization as the island seeks more resilient, affordable power. Disaster Recovery: González-Colón announced $23.33M in FEMA obligations for 10 Puerto Rico recovery projects, including fire-pump design work at the Aguirre Generation Complex and upgrades tied to schools and municipal roads. Trade & Logistics: A Puerto Rico foreign-trade zone push argues FTZ capacity in Mayagüez, San Juan, and Ponce is underused, urging more SME participation in import, storage, and export. Media Industry: Two legacy Puerto Rican newspapers—El Nuevo Día and Primera Hora—will end print editions and go digital-only, citing shifting consumer habits and ad pressure. Retail & Delivery: Costco expands same-day delivery via DoorDash nationwide and extends Uber Eats coverage, with DoorDash already active for Costco in Puerto Rico. Health & Risk: A new U.S. heart-disease report flags Hispanic adults’ rising cardiovascular risk, with Puerto Rican heritage singled out in differing outcomes. Infrastructure & Power Costs: LUMA’s energy-rate hearing and ongoing PREPA/oversight board debates continue to shape Puerto Rico’s electricity future.

Water Infrastructure: The U.S. House passed the Water Resources Development Act of 2026 with 11 Puerto Rico-focused priorities, including higher federal support for drinking water and sewerage and flood/coastal protection projects, now headed to the Senate. Hurricane Maria Recovery: Nine years after Maria, Puerto Rico still leans heavily on federal recovery funds, with local business leaders saying the island remains in a long recovery phase. Energy Regulation: Puerto Rico’s Energy Bureau ordered LUMA Energy and Genera PR to explain a proposed six-cent electricity rate hike for Oct–Dec, demanding detailed breakdowns of fuel and power-cost drivers. Healthcare Costs: Puerto Rico is set to join the Most Favored Nation Medicaid drug-pricing model, but questions are growing over the secrecy of the underlying agreements. Trade & Water Crisis Response: The Connecticut–Puerto Rico Trade Commission is pushing to strengthen economic ties, citing early momentum from drought-related water relief efforts. Economic Strategy: Bacalia Group founder Giuseppe Cicatelli argues Puerto Rico needs a new economic model that links education, tourism, tech, and infrastructure to productive businesses and talent retention.

Medicaid Drug Pricing Expansion: The Trump administration’s GENEROUS model is moving “most-favored-nation” prescription pricing to Medicaid in all 50 states, Washington, D.C., and Puerto Rico, with CMS estimating $64.3B in savings over 10 years as manufacturers provide supplemental rebates. Local Water & Accountability: Puerto Rico’s water rationing and service disruptions are tied to drought plus aging infrastructure, with advocates pressing for clearer accountability and transparency from PRASA and government agencies. Energy Infrastructure Pressure: LUMA’s rate-hike fight continues as officials demand transparency, while separate coverage flags ongoing grid modernization needs and reliability concerns. Food & Beverage Industry Support: DDEC is backing eight Puerto Rican companies to participate in the Americas Food & Beverage Show, signaling continued push for export and supply-chain growth. Workforce & Training: Warmkraft PR plans to invest more than $16M in Mayagüez, adding momentum for local manufacturing jobs and skills. Aerospace Talent Focus: Coverage highlights aerospace activity in Puerto Rico alongside a talent-drain challenge that could affect future production capacity.

Medicaid Drug Pricing: President Trump announced the GENEROUS model will extend “most-favored-nation” prescription drug pricing to all 50 states, D.C., and Puerto Rico, aiming for nearly $65B in Medicaid drug savings over a decade via manufacturer supplemental rebates. Water & Infrastructure Accountability: Puerto Rico’s drought and aging system are driving rationing and service disruptions, with advocates pointing to long-standing gaps in transparency and citizen power to demand fixes. Energy Modernization: LUMA is moving to replace 25 poles as part of infrastructure modernization efforts, while local regulators and officials continue to scrutinize reliability and potential disconnections. Aviation & Tourism Demand: American Airlines is expanding Caribbean service from Miami for the winter season, including added flights to San Juan, as it manages operational issues on some aircraft. Industry & Finance: NIST awarded more than $30M to Manufacturing Extension Partnership sites, including Puerto Rico, supporting workforce and manufacturing scale-up. Local Agriculture Policy: A Senate agricultural bill advanced after committee approval, keeping pressure on Puerto Rico’s farm competitiveness agenda.

Water Crisis & Accountability: Puerto Rico’s drought and aging infrastructure are driving rationing and service disruptions, with advocates saying the real issue is a long-standing gap between residents and the institutions tasked with essential services. Energy & Grid Reliability: American Airlines is adding more Caribbean flights from Miami for winter demand, while also dealing with operational issues that have forced some business-class seats to be left empty on certain routes. Healthcare Costs: President Trump announced the GENEROUS Medicaid model will extend most-favored-nation drug pricing to all 50 states, D.C., and Puerto Rico, aiming to cut Medicaid drug costs via manufacturer rebates. Retail & Logistics: Costco is expanding same-day delivery through DoorDash and Uber Eats, extending ultra-fast fulfillment to more U.S. states and hundreds of locations. Local Industry & Infrastructure: The Western Pacific Fishery Management Council meeting highlighted support for fishing communities, with NOAA stressing regional knowledge—citing Puerto Rico and the Caribbean experience. Agriculture & Youth: Sutherland FFA student Bentley Brunz was selected for the National FFA Chorus at the National FFA Convention in Indianapolis, with Corteva Agriscience as sponsor.

Healthcare & Drug Pricing: President Trump announced the GENEROUS Medicaid model will extend “most-favored-nation” drug pricing to all 50 states, D.C., and Puerto Rico, aiming to cut Medicaid drug costs via manufacturer rebates and projecting nearly $65B in savings over a decade. Energy & Grid Reliability: Eversource unveiled a proposed 115-kV substation in Burlington, saying rising demand and strained nearby substations require new capacity. Water Infrastructure: A Puerto Rico water crisis tied to drought and aging systems is again raising questions about accountability and transparency as rationing disrupts daily life. Aviation & Travel: American Airlines plans to expand winter international service from Miami, including San Juan with additional daily flights, while also dealing with operational issues that can leave business-class seats empty. Cybersecurity: ESET reports China-aligned Salt Typhoon shifted focus to Latin America, including Puerto Rico, deploying a new backdoor called SparroWocky. Retail & Logistics: Costco is expanding ultra-fast delivery partnerships with DoorDash and Uber Eats, extending same-day options to more U.S. shoppers.

Medicaid Drug Pricing: President Trump announced the GENEROUS “most-favored-nation” drug pricing model will extend to all 50 states, D.C., and Puerto Rico, aiming to cut Medicaid prescription costs on hundreds of brand-name drugs and drive about $65B in savings over a decade. Retail & Logistics: Costco is expanding ultra-fast delivery via DoorDash and Uber Eats, extending same-day reach to more shoppers and adding another pressure point for local retail and delivery ecosystems. Puerto Rico Business Growth: DDEC is backing eight Puerto Rican food and beverage firms to exhibit at the Americas Food & Beverage Show in Miami to push export deals. Manufacturing & Defense Supply Chain: Warmkraft Puerto Rico will invest $16M+ in Mayagüez to treat military uniforms with a closed-loop process, creating about 65 jobs and targeting defense-related demand. Energy/Utilities & Finance: A securities class-action filing tied to Flotek Industries references its Puerto Rico Electric Power Authority (PREPA) power-generation project, with investors urged to act ahead of a late-October deadline. Community & Culture: The National Trans Visibility March is scheduled in San Juan for Oct. 14–17, positioning Puerto Rico as a key regional gathering for advocacy and community events.

Defense & Manufacturing: Warmkraft Puerto Rico LLC will invest more than $16M in Mayagüez to treat military uniforms with a closed-loop process, creating about 65 jobs and adding solar and lab capabilities for the U.S. defense supply chain. Energy Governance: La Fortaleza rejected LUMA’s proposed rate hike and demanded transparency on executive salaries and benefits, while Gothams Energy pushed back on testimony tied to temporary power contracts. Consumer Protection: The Puerto Rico Senate will investigate companies promoting property raffles on social media, citing possible DACO compliance gaps and concerns about undisclosed taxes on prizes. Exports & Food Industry: DDEC is backing eight Puerto Rican food and beverage firms at the Americas Food & Beverage Show in Miami to expand U.S. and international sales. Retail & Inflation Watch: DDEC data show retail sales up 1.2% in FY2026, but the Retail Trade Association says it’s largely price-driven, leaving unit sales effectively flat. Real Estate Development: RioBlanco Capital’s $45M “The Legacy” is bringing 44 new homes to Guaynabo’s Garden Hills/San Patricio area. Cybersecurity: ESET reports China-aligned FamousSparrow expanded across Latin America, including targets in Puerto Rico, using a new backdoor dubbed SparroWocky. Capital Markets: Multiple law firms renewed Flotek (FTK) securities-fraud alerts tied to its Puerto Rico PREPA power project, with investor deadlines highlighted.

Water Infrastructure: The U.S. House approved Puerto Rico’s water priorities in the 2026 WRDA, boosting federal authorization for drinking water and wastewater projects from $35M to $75M and advancing flood and coastal protection studies. Agriculture Policy: Puerto Rico’s federal agriculture bill momentum continues after the Senate Agriculture Committee approved its Farm Bill version, aiming to modernize programs and strengthen rural infrastructure and food supply chains. Logistics & Trade: Estes Express Lines is investing nearly $56M to expand cross-border and offshore freight capacity, including service tied to Puerto Rico and the Caribbean. Retail Delivery: Costco delivery keeps expanding—DoorDash and Uber Eats now offer Costco orders nationwide, with Puerto Rico already included in earlier partnerships. Cybersecurity: ESET reports the China-aligned FamousSparrow shifted Latin America targeting using a new SparroWocky backdoor, including Puerto Rico government entities. Energy Oversight: A securities-law investigation is underway into Flotek Industries over its Puerto Rico Electric Power Authority power-generation deal, after claims the agreement was terminated. Community & Culture: Hispanic Heritage Month programming continues to spotlight Latino business and cultural impact, including Puerto Rican creative work tied to local exhibits and events.

Electric Grid & Infrastructure: LUMA will replace 25 aging poles in Ponce as part of a DOE-funded modernization effort aimed at cutting outages and improving safety for nearly 4,900 customers. Local Power Dispute: Cidra Mayor Delvis Pagán asked the Puerto Rico Energy Bureau to stop potential LUMA disconnections while regulators review a $319,216.88 billing dispute tied to municipal consumption caps. PREPA Restructuring: The Financial Oversight and Management Board told a federal judge PREPA’s Fifth Amended Plan remains confirmable even after major creditor support fell away. Oil Tax Oversight: The Puerto Rico Senate continued hearings on the “crudita” oil tax, weighing how it affects fuel prices and what data and transparency should guide future recommendations. Water Crisis & Governance: A SOMOS conference op-ed argues the island’s worsening water crisis makes “business as usual” politically and morally untenable. Food & Agriculture: A new study highlights where Puerto Rico farmers can beat import prices on specific products, reigniting debate over agricultural competitiveness. Manufacturing & Jobs: Enterprise reopened its Hatillo rental facility after Hurricane Maria, investing $650,000 and expanding local transport capacity. Business & Culture: Tyler Perry says he plans to move to Puerto Rico at the start of 2027, citing a slower pace for family time. Mobile Entertainment: SlingShot launches in Puerto Rico as a vertical streaming platform for smartphone-first microstories, with an international $30,000 talent competition. Consumer Tech: ADT Blu added to Walmart.com, while Costco delivery expands via DoorDash and Uber Eats partnerships. Regulatory/Legal: The Puerto Rico House is pushing an investigation into the Miss Universe-linked $8.7 million public funds after new banking-transaction questions. Cybersecurity: ESET reports China-aligned FamousSparrow is expanding Latin America targeting with a new backdoor, SparroWocky.

Electric Reliability Upgrade: LUMA will replace 25 aging poles in Ponce—plus related conductors and vegetation clearing—under a ~$259,000 DOE-funded project aimed at cutting outages for about 4,900 customers. Food & Agriculture Competitiveness: A new UPR study finds local farmers beat import prices for 30 of 74 products, with bigger gaps versus supermarket and direct-to-consumer prices—reigniting debate over whether Puerto Rico can scale food self-sufficiency. Tourism & Culture Push: Puerto Rico’s global spotlight from Bad Bunny’s “Debí tirar más fotos” (GRAMMY win, major residency, and stadium finale) is boosting attention, but the lasting economic tourism payoff is still being measured. Vehicle Fleet Snapshot: Puerto Rico updated vehicle registration-sticker data after 16 years, showing a “fewer people, more cars” paradox that could reshape how planners and industry view demand. Local Film Incentives: Lawmakers and industry leaders kept pressing for a federal film tax incentive, noting Puerto Rico already offers credits—positioning the island for more production activity if national support expands. Manufacturing Support: NIST awarded over $30M to Manufacturing Extension Partnership centers, including Puerto Rico, to help small and medium manufacturers adopt advanced production tech. Energy Contract Scrutiny: Securities class-action notices tied to Flotek’s Puerto Rico Electric Power Authority generation contract highlight investor concerns about disclosures and project readiness.

Puerto Rico Energy & Power Procurement: A Puerto Rico House committee hearing heard testimony that the Independent Office of Procurement flagged three people or firms tied to lobbying around bidders for the island’s temporary generation contract—Javelin (McConnell Valdés lobbying division), Gotham (attorney Anthony Maceira), and Power Expectations (Alfredo Escalera)—even as the bidders said under oath they had no lobbyists. Aerospace Jobs & Skills: A new study for One Stop Careers says Puerto Rico’s aerospace push has strong growth potential, especially for MRO and support services, but warns talent retention and skilled-labor shortages could slow expansion. PREPA Contract Under Scrutiny: Securities litigation notices tied to Flotek Industries’ 10-year PREPA natural gas project claim investors weren’t properly informed about risks around the consortium’s experience and the likelihood of revenue realization. Entrepreneurship Climate: Puerto Rico’s small-business base grew 11.3% from 2024 to 2025, but surveys point to capital gaps—most founders rely on personal savings, while few access government grants—and financial skills remain a major barrier. Trade & Manufacturing Costs: New reporting on tariff impacts includes Puerto Rico among jurisdictions tracking higher costs for manufacturers tied to raw materials, parts, and equipment. Payments Expansion: i-payout announced continued expansion of its U.S. money transmitter licensing footprint while pursuing a European EMI license to support cross-border payout programs.

Puerto Rico Energy & Finance: Corteva board approved splitting into Vylor (seeds/genetics) and New Corteva (crop protection), effective Oct. 1, as 19 states, Puerto Rico and DC asked a federal judge to block the move over alleged efforts to shift PFAS-related liability. Puerto Rico Power Contract Watch: Investor alerts tied to Flotek Industries’ Puerto Rico Electric Power Authority deal say a securities class action is moving forward, with Oct. 26, 2026 a key lead-plaintiff deadline. Food Safety & Imports: FDA escalated alfalfa sprout recalls to Class I after potential STEC/E. coli and Salmonella contamination; the recall coverage includes Puerto Rico among other markets. Health & Research: OmegaQuant Analytics won an NIH SBIR grant to study whether omega-3 status can predict future risk of age-related macular degeneration and glaucoma. Local Business & Workforce: NIST awarded $30M+ for Manufacturing Extension Partnership centers, including one in Puerto Rico, to help small manufacturers adopt advanced tech like AI and robotics. Industry Leadership: Tyler Perry said he plans to move to Puerto Rico in early 2027 and scale back production.

Puerto Rico Energy & Power Contract Risk: A Flotek Industries (FTK) securities fraud lawsuit points to alleged misleading statements tied to its Puerto Rico Electric Power Authority (PREPA) power generation project, with a lead-plaintiff deadline of Oct. 26. Corporate Investment: Coca-Cola says it will invest more than $10B in U.S. infrastructure from 2026-2030, spanning production, distribution and facilities, alongside an economic impact report. Construction & Ownership Transition: Asa Carlton, Inc. announces a new ownership structure after Scott Hester completes an acquisition, with long-time president Nathan Artman taking an ownership stake. Agriculture & Soil Practices: Cover crop adoption keeps climbing, with a 2026 national survey including Puerto Rico showing average planted acres near 400 per operation and reported yield and weed-control benefits. Logistics & Aviation Safety: Amazon suspends its partnership with 21 Air after a deadly Miami cargo crash, where cockpit warnings reportedly flagged excessive speed. Local Business & Food: Pharma-Bio Serv reports improved quarterly results for the period ended July 31, 2026, highlighting regulatory and compliance services tied to life sciences. Entertainment & Talent: Tyler Perry says he plans to relocate to Puerto Rico in early 2027, signaling a major shift in his production schedule.

Energy & Courts: PREPA asked a federal judge to dismiss a lawsuit tied to a cancelled $5.9B temporary power contract, arguing the case should move under Title III bankruptcy proceedings. Aviation & Logistics: Amazon paused operations with cargo carrier 21 Air after a Sept. 6 Miami crash that killed five; the aircraft was carrying Amazon packages from San Juan. Payments & Retail Costs: Nearly 1,000 merchants urged a judge to reject a proposed Visa/Mastercard swipe-fee settlement, calling it loophole-heavy and seeking broad fee immunity. Biotech/Compliance: Pharma-Bio Serv reported revenues of about $2.3M for Q3 (ended July 31) and $7.3M for nine months, citing improved client relationships and efficiencies. Manufacturing/Ag Tech: Solinftec’s autonomous weed-spraying robot SOLIX is operating in Puerto Rico and 13 U.S. states, targeting herbicide reductions via continuous scouting. Real Estate/Franchise: Keller Williams added a Montenegro master franchise, expanding its EMEA footprint. Local Business & Culture: Puerto Rico’s urban artist Yan Block released “Modo Oculto,” a new single ahead of his debut album. Entertainment/PR Spotlight: Tyler Perry said he plans to relocate to Puerto Rico in 2027.

Puerto Rico Blue-Economy Push: The González-Colón administration has started demolishing the former U.S. Coast Guard pier facilities at Roosevelt Roads in Ceiba to clear the way for a 53,990-square-foot Marine Business, Research & Innovation Center aimed at marine research, workforce training, and private-university collaboration. Aviation & Logistics Shock: Amazon says it will pause operations with Miami-based 21 Air after a Sept. 6 cargo crash killed five; the move follows NTSB findings that pilots considered aborting and concerns about speed during landing. Freight Cost Pressure: Maersk added a $500 emergency surcharge for Gulf-bound containers (with Puerto Rico listed among regulated countries), and said some UAE-bound shipments may be rerouted to Fujairah with bonded transport to Dubai. Food Safety: A backyard poultry-linked Salmonella outbreak has expanded to 1,061 illnesses across 46 states and Puerto Rico, with two deaths reported. Local Courts: Puerto Rico’s Supreme Court ruled taxpayers don’t need to exhaust municipal remedies when challenging a municipality’s authority to impose a tax, not the amount owed. Business Contracting: FEDCON expanded to 264 businesses across 38 states plus Puerto Rico and Ontario, supporting firms pursuing government contracts.