{"id":107003,"date":"2017-10-31T00:59:38","date_gmt":"2017-10-30T22:59:38","guid":{"rendered":"http:\/\/www.arabtelegraph.com\/?p=107003"},"modified":"2017-10-31T00:59:38","modified_gmt":"2017-10-30T22:59:38","slug":"puerto-rico-moves-to-cancel-whitefish-power-contract-after-uproar","status":"publish","type":"post","link":"https:\/\/www.arabtelegraph.com\/?p=107003","title":{"rendered":"Puerto Rico moves to cancel Whitefish power contract after uproar"},"content":{"rendered":"

Puerto Rico\u2019s government power company said on Sunday it will cancel a $300 million contract with a tiny Montana company to restore power to the storm-hit U.S. territory after an uproar over the deal.<\/strong><\/p>\n

The contract between Whitefish Energy Holdings and Puerto Rico\u2019s bankrupt power utility came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process. Residents, local officials and U.S. federal authorities all criticized the arrangement.<\/p>\n

The cancellation could further complicate Puerto Rico\u2019s most pressing challenge from the territory\u2019s worst storm in 80 years – restoring power to its 3.4 million residents. Nearly six weeks after Hurricane Maria devastated the island, only about a quarter of homes and businesses have power, and the utility has set a goal of having 95 percent of power back by the middle of December.<\/p>\n

Several other utilities have been involved in recovery efforts, but Whitefish said they had more than 350 people on the island. Puerto Rico Electric Power Authority\u2019s (PREPA) Director Ricardo Ramos said that he had to consider the \u201cdelay risk\u201d of agreeing to cancel the contract. The territory has reached out to officials in Florida and New York, which have already sent people to Puerto Rico, to send more crews in the event that Whitefish departs.<\/p>\n

Whitefish said in a statement it was \u201cdisappointed\u201d in the decision, adding that it will \u201conly delay what the people of Puerto Rico want and deserve \u2013 to have the power restored quickly in the same manner their fellow citizens on the mainland experience after a natural disaster.\u201d<\/p>\n

Earlier on Sunday, Puerto Rico\u2019s Governor, Ricardo Rossell\u00f3 had called for the contract with Whitefish to be canceled, and PREPA\u2019s Ramos said he had accepted the governor\u2019s recommendation.<\/p>\n

\u201cFollowing the information that has emerged, and with the goal of protecting public interest, as governor I am asking government and energy authorities to immediately activate the clause to cancel the contract to Whitefish Energy,\u201d Rossello said in a statement.<\/p>\n

Ramos, in a press conference Sunday, noted that the initial enthusiasm from residents over Whitefish employees coming to the island had shifted in the last several days after media reported the details of the contract.<\/strong><\/p>\n

\u201cAs soon as this whole issue was interpreted by the tabloids that PREPA has given away $300 million to a company with little experience\u2026if you read that, and you have no light and no water that perception changes abruptly to the extent that the last four days they\u2019ve been throwing stones and bottles\u201d at workers, Ramos said.<\/p>\n

Ramos said contract terms with Whitefish meant that the cancellation would become effective 30 days from notice and, signaling potential intricacies, explained that there were \u201ca lot of logistics involved. I believe they have people on the way here.\u201d<\/p>\n

\u201cThe contract is not canceled as of yet. I am writing today a letter to the board of directors of PREPA asking for a resolution that will allow me to cancel the contract,\u201d Ramos said.<\/p>\n

Whitefish, which has a full-time staff of two, said it would complete any work that PREPA wanted it to, and noted their initial efforts \u201cexceeded all other efforts by other parties.\u201d<\/p>\n

They said they completed work on two major transmission lines that crossed the island\u2019s mountainous interior, and that PREPA\u2019s decision to contact them \u201conly sped up the repairs.\u201d<\/p>\n

Criticism increased after a copy of the contract with PREPA surfaced online on Thursday night and raised more questions, particularly over language blocking oversight of costs and profits.<\/p>\n

Ramos noted that the federal contracting process is a long one, and that PREPA \u201ccould not wait.\u201d<\/p>\n

APPEAL TO NEW YORK, FLORIDA<\/h3>\n

Efforts to restore power have been bumpy. It took more than a week for a damage assessment to be completed, and PREPA did not immediately ask for what is known as \u201cmutual aid,\u201d whereupon utilities send workers in droves to restore power to hard-hit areas.<\/strong><\/p>\n

Residents have been forced to rely on diesel generators and most of the island remained in darkness.<\/p>\n","protected":false},"excerpt":{"rendered":"

Puerto Rico\u2019s government power company said on Sunday it will cancel a $300 million contract with a tiny Montana company to restore power to the storm-hit U.S. territory after an uproar over the deal. 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