AGP Executive Report

Puerto Rico Financial Services Forum: Registration opened for the Puerto Rico Financial Services Forum’s sixth edition (Nov. 2–3, Sheraton San Juan), spotlighting AI in insurance, fintech/BaaS, AML and sanctions, digital assets, and correspondent banking. PREPA & Power Sector: A Puerto Rico energy dispute escalated as Power Expectations filed a sworn criminal complaint tied to alleged improper handling around a PREPA-related temporary power arrangement, while UTIER argues for returning grid operations to public control if LUMA’s contract ends. Electricity Workforce & Governance: UTIER says a public model could preserve technical know-how and cut costs, framing the debate as stability versus repeated privatization failures. Retail Pulse: Puerto Rico retail sales rose 4% in June to $4.463B, led by hardware/home improvement (+20.6%) and vehicles (+12.4%), while restaurants and liquor stores fell (-5.4%). Construction Safety: A construction industry suicide-prevention push urged jobsites to treat mental health like physical safety. Aviation Shock (Puerto Rico-linked): An Amazon cargo Boeing 767 arriving from San Juan overran a Miami runway, killing five people in vehicles and injuring five; investigators recovered flight recorders and are examining landing factors. Local Industry Expansion: Salinas opened Recicladora del Norte, processing about 72M pounds of recyclables and employing roughly 230 people. Digital Banking Recognition: FirstBank won multiple Global Finance awards for consumer digital banking app UX and user experience in Puerto Rico and Latin America.

Aviation & Logistics: The NTSB says it has recovered both the flight data recorder and cockpit voice recorder from the Amazon Prime Air Boeing 767-300F crash at Miami International, where the jet overran Runway 30 by about 1,300 feet and struck a van carrying seven airline cleaning workers plus a nearby SUV, killing five people on the ground and injuring five others; investigators are still in fact-finding mode and say recovery of victims remains the top priority. Airport Safety & Regulation: New scrutiny is building around runway safety, including whether Miami lacked an engineered materials arresting system (EMAS) at the overrun end, as federal officials and aviation experts question why the aircraft didn’t go around. Puerto Rico Tourism: Puerto Rico’s tourism industry reports the island’s ongoing water crisis hasn’t meaningfully hurt visitor flow, citing stable hotel demand and noting summer traffic patterns and internal tourism as key buffers. Public Health: A backyard poultry Salmonella outbreak tied to Puerto Rico has expanded to 1,061 cases across 46 states and Puerto Rico, with a second death reported, underscoring household risk even when birds look healthy. Energy & Infrastructure: NASA’s latest drought map highlights severe conditions across Puerto Rico, with most of the island affected and large portions in extreme drought—raising pressure on water, agriculture, and emergency planning. Gaming Industry: Win Systems sold its Gaming Division to Primero Games, expanding the Puerto Rico-linked installed base and manufacturing footprint under new ownership. Consumer Tech: Apple Wallet tips are circulating as users look to get more from digital passes and payment features.

Aviation Safety & Logistics: A Boeing 767-300 operated for Amazon Prime Air (21 Air) overran Runway 30 at Miami International Airport after arriving from San Juan, Puerto Rico, killing at least five and injuring five more; thick smoke and a major emergency response shut down airport operations, while investigators focus on the landing phase and whether the aircraft touched down too late to stop safely. Local Industry & Consumer Finance: Puerto Rico auto insurers are reshaping coverage and services as vehicle prices, interest rates, and repair costs rise, with industry leaders discussing new product designs to protect consumers and dealer-finance relationships. Energy Regulation: The Puerto Rico Energy Bureau ordered Genera PR to disclose extensive information tied to New Fortress Energy’s restructuring, raising questions about fuel supply and reliability for legacy power operations. Construction Materials: USGS data shows Portland and blended cement shipments to the US and Puerto Rico rose 2% year-over-year in April 2026, with clinker output up as well. Maritime Enforcement: The US Coast Guard seized a go-fast vessel carrying suspected marijuana worth over $2.4 million, detaining four. Trade Impact: A new analysis says Puerto Rico paid $919.7M in tariffs in 2025—nearly four times 2024—after sweeping US tariff actions.

Aviation Safety & Logistics: An Amazon-branded cargo Boeing 767 operated by 21 Air overran a runway at Miami International Airport after arriving from San Juan, Puerto Rico, killing at least five people and injuring others; authorities say the FAA will investigate and that runways/taxiways were shut during the emergency response. Public Health & Consumer Goods: Clorox Puerto Rico recalled about 6.3 million scented Mistolin and Lestoil cleaners sold in Puerto Rico and the U.S. Virgin Islands due to possible Pseudomonas aeruginosa contamination, with higher risk flagged for immunocompromised travelers and people with external medical devices. Tourism & Cruise Industry: Disney Cruise Line plans eight San Juan calls in fiscal 2028, including six homeport operations, projecting about $7.2 million in economic impact as the line expands during the Caribbean’s peak season. Media & Culture (PR Brand Power): Bad Bunny won his first Primetime Emmy for the Apple Music Super Bowl LX halftime show, which Puerto Rican imagery and Latin music helped propel to seven awards overall. Energy & Infrastructure (Context): Puerto Rico’s drought pressures water rationing and highlights broader climate risk as El Niño-driven heat raises global weather threats into 2027.

Puerto Rico Tourism Push: Puerto Rico was named International Guest Destination of Honor for ANATO 2027, with the Puerto Rico Tourism Company set to use the Bogotá showcase to lock in new commercial deals and spotlight the island’s tourism growth. Household Safety Recall: Clorox Puerto Rico recalled about 6.3 million bottles of scented Mistolin and Lestoil cleaners sold in Puerto Rico and the U.S. Virgin Islands due to possible Pseudomonas aeruginosa contamination, with higher risk flagged for people with weakened immune systems or medical devices. Energy Leadership Shake-Up: Puerto Rico’s PREPA saw a leadership change after the executive director resigned at the governor’s request; Fernando Osorio Caño was named interim executive director, while a separate lawsuit challenges canceled emergency power contract work. Power and Water Stress: Extreme drought continues to bite, with Puerto Rico water rationing staying in place and CT officials pledging support as the crisis persists. Local Business Impact from Entertainment: Bad Bunny’s sold-out San Juan concerts boosted Visa transactions citywide—nearly 11% higher than last year—with food and dining and lodging among the biggest gainers. Gaming Expansion: Primero Games acquired Win Systems’ Gaming Division, adding slot and electronic-roulette products and an installed base across Mexico, Peru, Colombia, Puerto Rico and Panama. Climate Research: UT researchers are studying how hurricanes and other extreme events are reshaping Puerto Rico’s communities and agriculture, aiming to connect science with local adaptation needs.

Clorox Recall Impact on PR/USVI Rentals: Clorox Manufacturing Company of Puerto Rico recalled about 6.3 million scented Mistolin Dilutable Cleaners and Lestoil Heavy Duty Multi-Purpose Cleaners sold in Puerto Rico and the U.S. Virgin Islands due to possible Pseudomonas aeruginosa contamination, with higher risk for people with weakened immune systems or external medical devices. Tourism & Spending: Visa Consulting & Analytics says Bad Bunny’s sold-out Debí Tirar Más Fotos finale in San Juan (Aug. 22-23) lifted city transactions nearly 11% year over year, with food/dining up 19% and lodging up 8%. Energy Leadership Shakeup: PREPA’s executive director Mary Carmen Zapata resigned after a policy disagreement with Gov. Jenniffer González Colón’s administration; Fernando Osorio Caño was named interim executive director, while PREPA faces a lawsuit tied to a canceled temporary power contract. PREPA Power & Contracts: A separate dispute follows the Oversight Board’s revocation of a $5.9B temporary generation contract approval, after which Power Expectations sued PREPA in federal court. Tourism Promotion: Puerto Rico was named International Guest Destination of Honor for ANATO 2027, aiming to deepen Latin America market ties, especially with Colombia. Logistics Deal: Ports America signed a 10-year Trailer Bridge agreement to handle stevedoring and deploy terminal tech for Jones Act barge service between Jacksonville and San Juan, with Dockworks cargo-tracking tools planned to go live in 2027. Climate & Agriculture Research: UT researchers are studying how hurricanes and extreme weather are reshaping Puerto Rico’s environment and communities through CCAN, including impacts on rivers, landslides, and agriculture.

Tourism & Retail Impact: Visa Consulting & Analytics says Bad Bunny’s sold-out Debí Tirar Más Fotos finale at Hiram Bithorn Stadium lifted San Juan spending, with total Visa transactions up nearly 11% versus last year and food/dining up 19%, plus lodging up 8%, driven by a 22% jump in international-visitor transactions. Energy Governance: PREPA’s executive director Mary Carmen Zapata resigned at the governor’s request, and Fernando Osorio Caño was named interim director; separately, PREPA is facing a lawsuit over a canceled 400 MW emergency power contract. Water & Drought Response: Puerto Rico’s drought deepened, with extreme conditions covering more than 40% of the island and the governor expanding USDA drought disaster declarations; Connecticut officials also pledged support as the water crisis continues. Logistics & Ports: Ports America and Trailer Bridge signed a 10-year deal to handle stevedoring and deploy terminal tech for the Jones Act barge service between Jacksonville and San Juan, aiming to improve cargo tracking and visibility. Public Health & Consumer Safety: Clorox Puerto Rico recalled about 6.3 million bottles of Mistolin and Lestoil cleaners over potential bacteria contamination, affecting sales in Puerto Rico and the U.S. Virgin Islands. Research & Climate Resilience: UT researchers are studying how hurricanes and extreme weather are reshaping Puerto Rico’s environment and agriculture through the CCAN project, linking science to community preparedness. Tourism Promotion: Puerto Rico was named International Guest Destination of Honor for ANATO 2027, with plans to expand commercial ties and showcase the island to Latin American markets.

Energy Leadership Shakeup: Puerto Rico Electric Power Authority (PREPA) accepted the resignation of executive director Mary Zapata Acosta, naming Fernando Osorio Caño as interim director amid policy tensions and fallout from a canceled temporary power deal. Power Contract Dispute: Power Expectations sued PREPA in federal court after PREPA terminated a contract aimed at adding 400 MW of temporary generation, following Oversight Board action tied to alleged signature authorization issues. Drought Watch: The U.S. Drought Monitor reports 75.2% of Puerto Rico is in drought, with 41% in extreme conditions, concentrated along the south and parts of the east. Fiscal Update: Puerto Rico Treasury closed FY2026 with $13.91B in General Fund revenues, up $279.1M year over year, with June receipts boosted by manufacturing-linked activity. Energy Resilience Research: UT researchers are studying how hurricanes and extreme weather are reshaping Puerto Rico’s climate risks and adaptation needs through CCAN, including impacts on landslides, reservoirs, and agriculture. Port/Logistics Deal: Ports America signed a 10-year Trailer Bridge agreement to handle stevedoring and deploy terminal tech for the Jacksonville–San Juan Jones Act barge lane, with visibility tools targeted for 2027. Consumer Safety Recall: Clorox Puerto Rico recalled 6.3M bottles of scented Mistolin and Lestoil cleaners sold in Puerto Rico and the U.S. Virgin Islands due to potential bacteria contamination, with higher risk for people with weakened immune systems. Gaming Expansion: Primero Games acquired Win Systems’ gaming division, adding slot and electronic-roulette products and an installed base across Latin America and the Caribbean, including Puerto Rico.

Drought Watch: Extreme drought now hits 75.2% of Puerto Rico, with 41% in the worst category (D3) and another 21.3% in severe (D2), concentrated along the south coast and much of the east, including Vieques—raising pressure on water supplies and local operations. PREPA Leadership & Power Contract Fallout: PREPA’s board accepted the resignation of executive director Mary Zapata Acosta, naming Fernando Osorio Caño interim director, as a lawsuit over a canceled 400 MW emergency power contract continues after allegations of forged signatures and contract termination. Puerto Rico Fiscal Update: The Treasury Department says FY2026 General Fund revenues closed at $13.91B, up $279.1M year over year, with June collections boosted by stronger manufacturing-linked income tax receipts. Ag & Small Business Support: USDA approved an expanded drought disaster declaration covering 3 primary and 16 contiguous municipalities, bringing the total to 38 and unlocking emergency loans for farmers and eligible small businesses. Energy Policy Risk (U.S. angle): California’s virtual power plant payments face uncertainty after state funding decisions, a reminder of how grid-flexibility programs can swing with budgets. Consumer Safety Recall: Clorox recalled 6.3M bottles of Mistolin and Lestoil cleaners sold in Puerto Rico and the U.S. Virgin Islands due to potential bacterial contamination, targeting higher-risk households. Retail Expansion Signal: Five Below says it plans to enter Puerto Rico in the second half of 2027, signaling new competition for value retail.

Puerto Rico Fiscal Update: The Treasury Department reported $13.9129 billion in General Fund revenues for FY2026, up $279.1 million (2%) from FY2025 and above oversight-board projections, with corporate and individual income taxes, the Sales and Use Tax, and nonresident withholding leading gains. Energy Contract Scrutiny: Members of Congress are pressing for answers after a nearly $6 billion Puerto Rico energy contract was canceled over alleged forgery tied to temporary power generation equipment. Drought & Agriculture Aid: The USDA expanded Puerto Rico’s drought disaster declarations, bringing coverage to 38 municipalities and unlocking emergency loans and other support for farmers and eligible small businesses. Infrastructure Resilience: Ferrovial is set to widen and enhance the Río Piedras channel under a $1.1 billion U.S. Army Corps of Engineers contract aimed at reducing flood damage. Consumer Safety: CPSC recalled 6.3 million bottles of specific Mistolin and Lestoil cleaners sold in Puerto Rico and the U.S. Virgin Islands due to possible bacterial contamination. Retail Expansion Watch: Five Below says it will enter Puerto Rico in the second half of 2027, after strong Q2 results and store growth. Legal/Finance: The First Circuit ordered a redo in a Puerto Rico hospital loan fight, reviving a Chapter 11 dispute involving Instituto Medico Del Norte.

Consumer Safety Recall: CPSC announced the recall of 6.3M Clorox Scented Mistolin Dilutable Cleaners and Lestoil Heavy Duty Multi-Purpose Cleaners sold in Puerto Rico and the U.S. Virgin Islands due to possible bacterial contamination. Energy & Costs: Gasoline and diesel prices in Puerto Rico climbed as Middle East conflict tightened global oil supply, with diesel hit hardest. Water Crisis Response: Gov. Jenniffer González Colón requested Emergency Reserve funds to evaluate and rehabilitate five inactive public wells that could add up to 5M gallons/day if cleared, while USDA expanded Puerto Rico’s drought disaster coverage to 38 municipalities. Infrastructure Resilience: The Puerto Rico House ordered a formal investigation into instability and accelerated coastal erosion along the PR-1 corridor, with possible relocation of the road under review. Renewables Pipeline: AES Puerto Rico says 120MW solar in Salinas and 80MW solar in Guayama are nearing startup, alongside 285MW of battery storage. Local Business & Jobs: DDEC launched “Economic Development on the Road” to bring permits, incentives, workforce and export support to all 78 municipalities. Construction Market: ENR reports data-center-driven demand is boosting Top 400 contractor revenues, but labor and execution pressures are rising. Public Health & Agriculture: USDA’s drought expansion targets farmers and producers in designated areas for emergency loans and assistance.

Water Crisis Response: Connecticut officials will travel to Puerto Rico in October to help identify solutions to the island’s ongoing water emergency, including meetings in San Juan, Salinas and Comerío, as aging infrastructure and drought continue to drive rationing. Maritime Safety: The U.S. Coast Guard warned the public about risks tied to illegal passenger-for-hire charter operations across Florida, Georgia, South Carolina, Puerto Rico and the U.S. Virgin Islands, urging travelers to verify credentials and inspection certificates before boarding. Ports & Logistics: Ports America and Trailer Bridge kicked off a 10-year Jacksonville partnership (with optional extensions) covering stevedoring and terminal technology to improve the Jacksonville–San Juan Jones Act barge service. Local Economy & Housing: Puerto Rico’s real estate market saw fewer property sales in the first half of 2026 (down about 7%) even as average prices rose roughly 12.6%, with most transactions still clustered at $300,000 or less. Industry Data Governance: Puerto Rico’s statistics institute warned 31 municipalities and 16 executive agencies they could face administrative fines or legal action for failing to designate representatives to the Committee for Statistical Coordination. Agriculture Tech: Solinftec says its autonomous Solix robots operated in Puerto Rico and 12 other states, covering 55,427 acres and cutting chemical use by an average of 85% as it expands its farm platform via an Amazon store for replacement parts.

Real Estate Watch: Puerto Rico’s first-half 2026 market saw 7% fewer property sales (13,733 vs. 14,770) even as average prices jumped 12.6% to $259,555, with about 8 in 10 deals still clustered at $300,000 or less. Shipping & Logistics: Ports America and Trailer Bridge launched a ten-year Jacksonville partnership (with two optional five-year extensions), pairing stevedoring and the Dockworks terminal platform to improve visibility on the Jacksonville–San Juan Jones Act barge lane. Energy/Power Projects & Capital Markets: Investor-law notices keep circling Flotek Industries after claims tied to a Puerto Rico Electric Power Authority natural gas project, with lead-plaintiff deadlines highlighted for securities class actions. Local Governance & Data Compliance: The Puerto Rico Institute of Statistics warned 31 municipalities and 16 agencies about potential fines and legal action for missing required statistical coordination designations. Ticketing Regulation: Puerto House Bill 1031 advanced to the Senate to eliminate “promoter” and “venue” ticket fees, aiming to improve transparency and reduce junk charges. Water & Development Pressure: A documentary screening spotlighted environmental opposition to the $2B Esencia luxury coastal project in Cabo Rojo, citing water scarcity and risks to local agriculture.

Puerto Rico Water Response: The Puerto Rico National Guard says it has distributed 1.015 million gallons of water and purified 298,151 gallons under its Water Sentinels drought mission, coordinating with agencies and municipalities to restore access to safe drinking water. Energy & Grid Pressure: LUMA warns the power grid is under stress as solar adoption accelerates, underscoring how reliability planning is becoming a bigger issue for utilities and developers. Cruise Tourism Boost: Disney Cruise Line will add eight San Juan visits in fiscal year 2028, projecting $7.2 million in economic impact for hotels, restaurants, transportation and excursions. Port & Logistics Deal: Ports America and Trailer Bridge signed a 10-year agreement for Jacksonville–San Juan Jones Act operations, with Dockworks terminal tech rolling out for customer visibility in 2027. Agroecology Funding: IALA-PR launched the Science for (and with) the People Fund to back agroecological research aimed at protecting biodiversity and strengthening Puerto Rico’s food systems. Local Business Credit Tech: Soft Pull Solutions promoted a Puerto Rico-focused soft credit-pull strategy to improve match rates while reducing SSN requests. Securities Watch (Flotek): Multiple law firms issued notices tied to Flotek Industries’ Puerto Rico Electric Power Authority project, with lead-plaintiff deadlines set for late October 2026.

Workforce & Education: Gov. Jenniffer González Colón signed an executive order to implement Puerto Rico’s Workforce Pell Grant Program, setting up an interagency committee to approve short-term training (150–599 contact hours) tied to job demand and employer credentials. Water & Energy Governance: After the Drought Committee meeting, officials said water rationing schedules won’t expand beyond current reservoirs, with La Plata and Sergio Cuevas operational adjustments staying in place while the government evaluates options like activating offline wells. Agroecology Research: IALA-PR launched the Science for (and with) the People Fund to back young agroecological researchers focused on biodiversity-friendly food systems tailored to Puerto Rico’s conditions. Maritime & Supply Chains: Panama Canal slot reductions tied to low water levels could raise shipping costs and delay Asia-origin goods reaching Puerto Rico, with local manufacturers warning about the impact on imports. Cruise Industry: Puerto Rico will host the Florida-Caribbean Cruise Association conference Oct. 12–16, aiming to build on projected 2026 passenger growth and strengthen home-port efforts. Local Business & Jobs: New Fortress Energy said its restructuring won’t disrupt Puerto Rico operations, contracts, or natural gas infrastructure. Youth Sports Tourism: Passport Sports and Discover Puerto Rico launched the Puerto Rico Beisbol Experience, bringing managed youth baseball trips with games against local academies. Tech & Youth Safety: Puerto Rico is included in a multistate Meta settlement totaling $18B+ that requires new protections for minors on Instagram and Facebook, including daily limits and nighttime blocks.

Meta Youth Safety Settlement: Puerto Rico is set to receive $124.7M from a multijurisdictional Meta deal tied to allegations of addictive design and mental harms for minors, with new child-safety rules including daily time limits and nighttime blocks. Local Policy for Minors: Rep. José Aponte says he’ll introduce legislation directing part of Puerto Rico’s Meta settlement to AMSSCA to create a program for preventing problematic social media use among minors and supporting parents. Manufacturing Expansion: Gov. Jenniffer González-Colón announced Pentaq Manufacturing’s Sabana Grande expansion via a new PRIDCO industrial property, adding 50 jobs and boosting production of Army physical training uniform components. Workforce Training Funding: The governor signed an executive order adopting the Workforce Pell Grant Program framework to expand federal funding for education and workforce training tied to high-demand occupations. Port Costs Cut: Puerto Rico’s Ports Authority confirmed it repealed Regulation 8837, ending the “scanning charge” for cargo container movement after Law 126-2023. Entertainment & Tourism: Coca-Cola Music Hall in San Juan celebrated its one millionth visitor, marking five years as a major events destination. AI for Finance Access: Sun West Mortgage and AngelAi launched “Angel Agents,” aiming to deploy secure, personalized enterprise AI for thousands of users while keeping individual data private. Shipping/Logistics Watch: The Ports Authority move could reduce distribution-chain costs by removing an added container inspection fee.