Director of Puerto Rico Power Company Resigns Amid Scrutiny

[thackney]

Director of Puerto Rico Power Company Resigns Amid Scrutiny
http://www.power-eng.com/articles/2017/11/director-of-puerto-rico-power-company-resigns-amid-scrutiny.html
Nov 17, 2017

The director of Puerto Rico's power company resigned on Friday amid ongoing blackouts and scrutiny of a contract awarded to a small Montana-based company to help rebuild the electric grid destroyed by Hurricane Maria.

Puerto Rico's Electric Power Authority said Ricardo Ramos presented his letter of resignation to the company's board effective immediately. Officials said Ramos would soon provide additional information.

Gov. Ricardo Rossello briefly told reporters that Ramos is a professional who worked hard to bring power back to Puerto Rico, but that "there were a series of distractions, and a decision was taken to go in another direction."

"That resignation was taken ... in the best interest of the people of Puerto Rico," he said.

Hours after the resignation, Rossello recommended that the board appoint Justo Gonzalez, the company's power generation director, as interim director.

Earlier this week, Ramos testified before a U.S. Senate committee about a $300 million contract awarded to Whitefish Energy Holdings that has since been canceled. The contract is undergoing a local and federal audit....

[thackney]

Documents: Puerto Rico Utility Ignored Advice on Whitefish Deal
http://www.power-eng.com/articles/2017/11/documents-puerto-rico-utility-ignored-advice-on-whitefish-deal.html
Nov 14, 2017

Puerto Rico's bankrupt electric utility ignored advice from its own lawyers before signing an expanded contract worth $300 million with a tiny Montana company to repair its damaged power grid, newly released documents show.

The law firm, Greenberg Traurig, recommended that the state-run power authority be allowed to terminate the deal within 10 days for any breach by the company, Whitefish Energy Holdings. The firm also recommended that the utility be allowed to seek damages from Whitefish and the company be required to hold a bond for such a large contract, the documents show.

Those recommendations and others were ignored as the power authority expanded a no-bid deal with Whitefish, which is based in Interior Secretary Ryan Zinke's hometown and had just two employees when Hurricane Maria hit in September.

The Puerto Rican Electric Power Authority, also known as PREPA, signed an expanded contract with Whitefish on Oct. 17 without making changes recommended by the law firm. The contract built on an earlier agreement PREPA and Whitefish signed days after the hurricane hit on Sept. 20.

The Oct. 17 contract raised the total payments allowed to Whitefish to $300 million, including linemen hired at a rate of more than $300 per hour....

[thackney]

Much of Puerto Rico Goes Dark After Whitefish-Repaired Line Fails
http://www.power-eng.com/articles/2017/11/much-of-puerto-rico-goes-dark-after-whitefish-repaired-line-fails.html
Nov 10, 2017

A Puerto Rico transmission line repaired by Whitefish Energy failed, instantly dropping power generation in the territory from 43.2 percent to 18 percent, NBC News reported.

The 230-KV line runs from Arecibo to Manati and caused losses mainly in the San Juan area, the Puerto Rico Electric Power Authority reported. Repairs were estimated to take 12 to 18 hours....

[thackney]

Fluor Completes High Priority Power Line in Puerto Rico
http://www.power-eng.com/articles/2017/11/fluor-completes-high-priority-power-line-in-puerto-rico.html
Nov 17, 2017

Fluor Corporation confirmed today that the company has completed a high-priority 38kv power line near San Juan. This will allow the Puerto Rico Electric Power Authority to re-energize lines that serve an area in Carolina that includes residential neighborhoods, a hospital and a branch campus of the University of Puerto Rico.

Work awarded to Fluor by the U.S. Army Corps of Engineers includes power grid restoration, repair and replacement of structures and equipment supporting the re-energization and recommissioning of electrical infrastructure in the eastern part of Puerto Rico.

“The U.S. Army Corps of Engineers has been assigned, under a Federal Emergency Management Agency mission, to help the Government of Puerto Rico bring electricity back to the people in the Commonwealth,” said Steve Whitcomb, head of Fluor’s Contingency Operations business. “Given Fluor’s long history in Puerto Rico, this mission is very close to our hearts.”

Within 48 hours of receiving the contract, Fluor assessment and logistics personnel were operational in San Juan, where the company has had offices and employees for more than 50 years. Fluor is working with more than a dozen local subcontractors, employs more than 600 project personnel, has over 50 crews assigned and has more than 500 pieces of equipment on the ground or in transit in support of the effort with additional personnel, equipment and material mobilized and deploying to the island....

[Suppressed]

Whitefish is halting Puerto Rico power repairs, claiming it's owed $83 million
By Leyla Santiago, Khushbu Shah and Rachel Clarke, CNN

Having trouble pasting link. But it's CNN.

[thackney]

Whitefish is halting Puerto Rico power repairs, claiming it's owed $83 million
By Leyla Santiago, Khushbu Shah and Rachel Clarke, CNN

Having trouble pasting link. But it's CNN.

http://www.cnn.com/2017/11/20/us/puerto-rico-power-whitefish-halts-work/index.html

https://www.nbcnews.com/storyline/puerto-rico-crisis/whitefish-energy-standing-down-puerto-rico-over-non-payment-83-n822756

http://thehill.com/blogs/blog-briefing-room/news/361298-whitefish-energy-stops-work-on-puerto-rico-power-grid-over

[thackney]

Whitefish is halting Puerto Rico power repairs, claiming it's owed $83 million
By Leyla Santiago, Khushbu Shah and Rachel Clarke, CNN

Having trouble pasting link. But it's CNN.

One of the reasons not to have hired such a tiny company in the first place is their ability to handle cash flow in such a situation.  They will get paid, eventually.  Fluor is better able to handle the financial commitments such work requires.

[Suppressed]

One of the reasons not to have hired such a tiny company in the first place is their ability to handle cash flow in such a situation.  They will get paid, eventually.  Fluor is better able to handle the financial commitments such work requires.

Thanks for posting the link my phone wouldn't handle.

The reason that firm was hired was because they were the only ones willing to take the job without up-front payment.  Puerto Rico makes a habit of stiffing folks.

[driftdiver]

One of the reasons not to have hired such a tiny company in the first place is their ability to handle cash flow in such a situation.  They will get paid, eventually.  Fluor is better able to handle the financial commitments such work requires.

Funny how those big companies use this excuse.   I've found big companies to be the most corrupt and dishonest people to work with.  Aside from govt people of course.

[driftdiver]

Thanks for posting the link my phone wouldn't handle.

The reason that firm was hired was because they were the only ones willing to take the job without up-front payment.  Puerto Rico makes a habit of stiffing folks.

These organizations like to use their vendors as short term banks.   I've seen senior leadership of large organizations (global banks, global insurance) laugh about stiffing vendors.   Not because of failure to perform, but because they knew the small company wouldn't take them to court.