Puerto Rico Utility Moves To Scrap $300M Whitefish Contact.
Gov. Ricardo Rossello urged the utility to scrap the deal for Whitefish’s help in rebuilding the electrical system from the damage inflicted by Hurricane Maria.
Meanwhile, the head of Puerto Rico’s power company said Sunday the agency is canceling its $300 million contract with Whitefish Energy Holdings amid scrutiny of the tiny Montana company’s role in restoring the island’s power system, the announcement by Ricardo Ramos came hours after.
“It’s an enormous distraction,” Ramos said of the controversy over the contract. “This was negatively impacting the work we’re already doing.”
The current work by Whitefish teams will not be affected by the cancelation and that work will be completed in November, Ramos sai, He added that the cancelation will delay pending work by 10 to 12 weeks if no alternatives are found.
He also said he had not talked with Whitefish executives about his announcement. “A lawsuit could be forthcoming,” he warned.
Chris Chiames, whitefish spokesman told The Associated Press that the company was “very disappointed” in the governor’s decision, and said it would only delay efforts to restore power.
Roughly 70 percent of the US territory remains without power more than a month after Maria struck on Sept. 20 as a Category 4 storm with winds of up to 154 mph (245 kph). Ramos said Sunday that the total of cost of restoring the system would come to $1.2 billion.
The cancelation is not official until approved by the utility’s board. Ramos said it would take effect 30 days after that.
The company already has paid Whitefish $10.9 million to bring its workers and heavy equipment to Puerto Rico and has a $9.8 million payment pending for work done so far, Ramos said.
Ramos said cancelation of the contract will not lead to a penalty, but it’s likely the government will pay at least $11 million for the company to go home early, including all costs incurred in the month after the cancelation.
Federal investigators have been looking into the contract awarded to the small company from Interior Secretary Ryan Zinke’s hometown and the deal is being audited at the local and federal level.
Ramos said the company contacted Puerto Rico’s Electric Power Authority two days before the storm hit, at a time when it was becoming clear the hurricane could cause massive damage.
Ramos earlier said he had spoken with at least five other companies that demanded rates similar to those of Whitefish, but also wanted a down payment the agency did not have.
He said Sunday he hadn’t consulted with anyone else about signing the deal and didn’t notify the governor’s office for a week , and he also praised Whitefish’s work, adding that he welcomes a federal investigation, “the process was done according to the law.”
FEMA said it has not approved any reimbursement requests from the power company for money to cover repairs to the island’s electrical system.
The contract said the utility would not pay costs unallowable under FEMA grants,
“The federal government is not a party to this contract” he added.
FEMA has raised concerns about how Whitefish got the deal and whether the contracted prices were reasonable. The 2-year-old company had just two full-time employees when the storm hit, but it has since hired at least 300 workers.
A Whitefish contract obtained by The Associated Press found that the deal included $20,277 an hour for a heavy lift Chinook helicopter, $650 an hour for a large crane truck, $322 an hour for a foreman of a power line crew, $319 an hour for a journeyman lineman and $286 an hour for a mechanic. Each worker also gets a daily allowance of $80 for food, $332 for a hotel room and $1,000 for each flight to or from the mainland.
Meanwhile, the head of Puerto Rico’s power company said Sunday the agency is canceling its $300 million contract with Whitefish Energy Holdings amid scrutiny of the tiny Montana company’s role in restoring the island’s power system, the announcement by Ricardo Ramos came hours after.
“It’s an enormous distraction,” Ramos said of the controversy over the contract. “This was negatively impacting the work we’re already doing.”
The current work by Whitefish teams will not be affected by the cancelation and that work will be completed in November, Ramos sai, He added that the cancelation will delay pending work by 10 to 12 weeks if no alternatives are found.
He also said he had not talked with Whitefish executives about his announcement. “A lawsuit could be forthcoming,” he warned.
Chris Chiames, whitefish spokesman told The Associated Press that the company was “very disappointed” in the governor’s decision, and said it would only delay efforts to restore power.
Roughly 70 percent of the US territory remains without power more than a month after Maria struck on Sept. 20 as a Category 4 storm with winds of up to 154 mph (245 kph). Ramos said Sunday that the total of cost of restoring the system would come to $1.2 billion.
The cancelation is not official until approved by the utility’s board. Ramos said it would take effect 30 days after that.
The company already has paid Whitefish $10.9 million to bring its workers and heavy equipment to Puerto Rico and has a $9.8 million payment pending for work done so far, Ramos said.
Ramos said cancelation of the contract will not lead to a penalty, but it’s likely the government will pay at least $11 million for the company to go home early, including all costs incurred in the month after the cancelation.
Federal investigators have been looking into the contract awarded to the small company from Interior Secretary Ryan Zinke’s hometown and the deal is being audited at the local and federal level.
Ramos said the company contacted Puerto Rico’s Electric Power Authority two days before the storm hit, at a time when it was becoming clear the hurricane could cause massive damage.
Ramos earlier said he had spoken with at least five other companies that demanded rates similar to those of Whitefish, but also wanted a down payment the agency did not have.
He said Sunday he hadn’t consulted with anyone else about signing the deal and didn’t notify the governor’s office for a week , and he also praised Whitefish’s work, adding that he welcomes a federal investigation, “the process was done according to the law.”
FEMA said it has not approved any reimbursement requests from the power company for money to cover repairs to the island’s electrical system.
The contract said the utility would not pay costs unallowable under FEMA grants,
“The federal government is not a party to this contract” he added.
FEMA has raised concerns about how Whitefish got the deal and whether the contracted prices were reasonable. The 2-year-old company had just two full-time employees when the storm hit, but it has since hired at least 300 workers.
A Whitefish contract obtained by The Associated Press found that the deal included $20,277 an hour for a heavy lift Chinook helicopter, $650 an hour for a large crane truck, $322 an hour for a foreman of a power line crew, $319 an hour for a journeyman lineman and $286 an hour for a mechanic. Each worker also gets a daily allowance of $80 for food, $332 for a hotel room and $1,000 for each flight to or from the mainland.
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