Government Energy Policy, Business and Technology

Puerto Rico Terminates Controversial Contract to Restore Its Power

Government Executive: The Puerto Rican government is canceling a controversial contract that it established to restore power to the hurricane-ravaged island, amid concerns about the procurement process, unusual provisions within the agreement and exorbitant pricing.

The Puerto Rico Electric Power Authority announced it would end the $300 million agreement entered into with Whitefish Electric in the wake of Hurricane Maria, though it did not admit any impropriety. Two congressional committees announced probes last week into the contract, and the Homeland Security Department’s inspector general is investigating it. The Federal Emergency Management Agency said it had “significant concerns” with the contract, which was offered without a competitive bidding process, and threatened not to reimburse the Puerto Rican government for related costs.

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