Rebuilding Puerto Rico’s Power Grid: The Inside Story
Instead,
PREPA quietly inked a one-year, no-bid contract for $300 million with Whitefish Energy Holdings, a two-person firm in Montana with little experience in grid repair or disaster recovery. Ramos said of the six contractors he considered, Whitefish was the only one that didn’t stipulate a large up-front deposit. Close scrutiny of the contract revealed unusual provisions, such as higher-than-normal rates for labor, per diem expenses, and travel—as well as a clause stating the work could not be audited.
A
second no-bid contract for $187 million went to Cobra Acquisitions, a subsidiary of the Oklahoma-based fracking company Mammoth Energy Services. Like Whitefish, Mammoth has no experience with a recovery project this big. Its contract also stated that the firm could not be audited, although Cobra eventually agreed to remove that language.
That contract has since swelled to $945 million, a fivefold increase.
PREPA officials have denied any wrongdoing, and Whitefish and Cobra note that they each deployed hundreds of crew members and shiploads’ worth of heavy equipment. The contractors’ linemen helped advance initial repair work along a handful of transmission lines, PREPA’s Soto confirms.
PREPA officials have denied any wrongdoing, and Whitefish and Cobra note that they each deployed hundreds of crew members and shiploads’ worth of heavy equipment. The contractors’ linemen helped advance initial repair work along a handful of transmission lines, PREPA’s Soto confirms.
However, the controversy over the contracts and the slow recovery infuriated Puerto Ricans and further eroded public trust in the utility. Finally, on 31 October, Ramos announced that PREPA was canceling the Whitefish contract, and he requested mutual aid from the
American Public Power Association and the
Edison Electric Institute, industry groups that represent hundreds of utilities.
On 17 November, Ramos resigned.
Wearing dark sunglasses and a bright orange hard hat, he stands atop a red dirt hill in Guaynabo, a western suburb of San Juan.
“Go as slow as possible,” he says into a walkie-talkie, watching as linemen in a bucket truck secure a 115-kV line to a new steel pole. Green iguanas scurry in the tall grass by the road.
There's the dirty end of it........Preppa San Juan's only power company using the storm to get money since they were already bankrupt.......brought in companies that weren't up to snuff...............
Go as slow as possible...............jerks made it a time and material job with kick backs.........go figure.