Whitefish sues over Puerto Rico payments

BILLINGS, Mont. — A small Montana company that landed and lost a $300 million contract to restore Puerto Rico’s hurricane-shattered electric grid has sued a subcontractor for allegedly interfering with tens of millions of dollars in payments.

Whitefish Energy Holdings claims the Puerto Rico Electric Power Authority withheld the money at the request of Indiana-based Arc American Inc.

The northwest Montana company asked U.S. District Judge Dana Christensen in a lawsuit filed this week to force Arc to withdraw the request so Whitefish can be paid.

In a Nov. 16 letter to the power authority, Arc American president Ben Wilson said Whitefish had failed to pay it $8.7 million for work done by the subcontractor. Wilson asked the authority to pay Arc American directly instead of through Whitefish.

Whitefish’s contract expired Thursday after accusations of overcharging that also contributed to the resignation of the power authority’s director.

The company has defended its work as effective in restoring power to large areas after Hurricane Maria battered the island on September 20. Spokesman Ken Luce said Friday that hundreds of Whitefish workers and their equipment will now return to the U.S. mainland.

“The company said Wednesday it had completed repairs to a major transmission line that would allow power to be restored to many San Juan neighborhoods.

He added that criticism of the $300 million contract “seems to be more of a U.S. issue than a Puerto Rico issue” and that the people on the island had been appreciative of the work.

Whitefish first came under scrutiny because it’s based in the same small Montana town as U.S. Interior Secretary Ryan Zinke.

Many people in Puerto Rico remain without power more than two months after Category 4 Maria devastated the island, killing at least 55 people.