WASHINGTON, Nov. 1, 2017 - Amid criticism, the Puerto Rico Electric Power Authority (PREPA) is backing out of a $300 million contract with Montana-based Whitefish Energy. The move comes after Puerto Rico Gov. Ricardo Rosselló called for its immediate termination. In a statement prior to the cancellation, the Federal Emergency Management Agency said the agency had “significant concerns with how PREPA procured this contract and has not confirmed whether the contract prices are reasonable.” Whitefish had already begun work to restore power in Puerto Rico after the island was devastated by Hurricane Maria, and had billed the commonwealth $10.9 million as of Sunday. The director of the Electric Power Authority, Ricardo Ramos, said the contract was signed on Sept. 26 as Puerto Rico braced for the impending storm. Ramos expects the cancellation will delay power restoration efforts another 10 to 12 weeks. Whitefish Energy is based in Whitefish, Montana, the hometown of Interior Secretary Ryan Zinke. Rosselló said he has asked for a federal probe into the contract award process.
Puerto Rico backs out of $300M electrical contract