Dems ask for investigation into Whitefish Energy deal
Two Democrats are calling for an investigation into a contract awarded to Whitefish Energy to restore power to Puerto Rico.
Sens. Maria Cantwell (Wash.) and Ron Wyden (Ore.) sent a letter to the Government Accountability Office (GAO) requesting a probe.
“We are writing to request that you investigate the use of public money to reimburse work completed under a contract between Whitefish Energy Holdings LLC (Whitefish) and Puerto Rico Electric Power Authority (PREPA, or Autoridad de Energia Electrica) to restore PREPA’s electric power system in the wake of Hurricane Maria,” the senators said in the letter, addressed to Eugene Dodaro, the head of the GAO.
“Restoring and rebuilding the grid is central to the public health, welfare, safety, and economic growth of Puerto Rico. Like all U.S. citizens, Puerto Ricans deserve no less.”
— Frank Thorp V (@frankthorp) October 26, 2017
Whitefish Energy, which is based in Interior Secretary Ryan Zinke‘s hometown in Montana, signed a $300 million contract to help overhaul the island’s grid following Hurricane Maria.
The deal raised eyebrows. The company is only two years old and had just two employees when PREPA signed the contract.
In their letter, the two lawmakers cited recent reports they said “raised serious allegations about the nature and circumstances surrounding” the contract.
“Among the principal concerns raised in these reports are the potentially inflated costs of time and material in the contract relative to comparable at-cost utility mutual aid agreements,” the letter said.
The senators also cited the “contemporaneous communications” between Whitefish and administration officials including Zinke.
“We are intent, along with many of our colleagues in Congress, on providing the hardworking federal workers, private sector workers, utility crews, and Puerto Ricans the necessary federal resources to restore electric power immediately on the island and to rebuild the grid in a more resilient way that facilitates long-term growth,” the statement said.
“It is essential that as we deliver these resources we have confidence the funds are being spent wisely and cost-effectively.”
The request comes after the company feuded earlier this week with the mayor of San Juan after she called for the contract to fix the island’s hurricane-ravaged electrical grid to be “voided.”
The governor of Puerto Rico this week requested an audit into how the company won a multimillion-dollar contract to restore power to the island.
Puerto Rico’s financial oversight board also reportedly plans to appoint an emergency manager to oversee its electric utility.
Most of Puerto Rico is still without electricity more than a month after Hurricane Maria hit the island.
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