Puerto Rico to cancel contract with Montana power company
70% of U.S. territory still without electricity
The head of Puerto Rico’s power company announced Sunday it will cancel the controversial $300 million contract with Whitefish Energy Holdings, a small Montana firm under scrutiny for its effort to coordinate restoring electricity on the island after Hurricane Maria.
The announcement came just hours after Puerto Rico Gov. Ricardo Rosselló called for the contract to be terminated.
Ricardo Ramos, head of the Puerto Rico Electric Power Authority (PREPA), said Whitefish has been working diligently to repair and replace downed power lines. But he said questions over the deal from the governor and Washington officials have taken the focus away from the repairs that need to be done.
The current work by Whitefish will not be affected by the cancellation, and that work will be completed in November, Ramos said. He said the government will need to find new companies.
Ramos said Whitefish crews were initially cheered by Puerto Ricans but have been unfairly turned into villains because of the controversy.
Whitefish issued a statement Sunday defending its work, saying it had delivered 350 workers and 600 pieces of heavy equipment to Puerto Rico despite the logistical challenges. The company vowed to complete its remaining work but expressed disappointment over the cancellation.
“The decision will only delay what the people of Puerto Rico want and deserve — to have the power restored quickly in the same manner their fellow citizens on the mainland experience after a natural disaster,” the company statement read.
Ramos said he will immediately begin the process of canceling the contract, which must be approved by PREPA’s board of directors and includes a 30-day notification process.
He also said Whitefish would not be paid $300 million, which represented the maximum possible if the job was completed. Instead, Ramos said Whitefish had completed work that will earn closer to $20 million.
Whitefish was formed two years ago and had two employees when it was awarded a contract with PREPA six days after the massive hurricane struck on Sept. 20.
Since then, Whitefish has struggled to get power crews to Puerto Rico to repair the ravaged electrical grid. As of Sunday, 70% of the U.S. territory remained without power.