Puerto Rico emergency energy contract dispute

A dispute has emerged in Puerto Rico regarding a failed temporary energy generation agreement intended to provide 800 megawatts of emergency power. The controversy began when the plan collapsed following allegations that a signature from contractor Enchanted Rock (ERock) was falsified, leading experts to suggest the contract might be null. In response, lawmakers from the Popular Democratic Party demanded public hearings to investigate the procurement process and questioned the decision to hold private meetings instead of public investigations.

The situation escalated as Power Expectations LLC, a member of the consortium, alleged misconduct involving attorney Javier Vázquez Morales, a legal adviser to the Financial Oversight and Management Board. The firm claims Vázquez engaged in improper conduct, conflicts of interest, and potential corporate espionage regarding the cancelled $5.8 billion contract for a 400-megawatt facility at the Aguirre power station.

Power Expectations has filed a lawsuit against the Puerto Rico Electric Power Authority (PREPA) to overturn the contract cancellation. The legal battle includes allegations that Vázquez attempted to influence the Energy Czar, Josué Colón Ortiz, by claiming Enchanted Rock was “apparently erroneously included” in the consortium, despite having prior knowledge of their formal agreements. The dispute also involves claims of improper contact with Flotek Industries, the company that replaced Enchanted Rock.