Financial Oversight Board discusses Power Expectations contract investigation

Robert Mujica, Executive Director of the Financial Oversight and Management Board, announced that legal advisors have met with federal agencies investigating the failed Power Expectations contract.

Mujica stated that the Board implemented safeguards to allow for contract termination based on non-compliance, regardless of ongoing allegations of forgery or false representations. He noted that the contract underwent significant changes after the Board's initial review, specifically regarding the parties involved and the scope of energy production.

While the original contract was for 400 megawatts, Flotek—a new party involved in the agreement—disclosed in SEC filings that it had only agreed to provide 40 megawatts. Mujica emphasized that the primary concern is why the contract terms and participants changed so drastically after the Board had approved the initial version.