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Power Expectations accuses fiscal board attorney of interference, conflicts of interest & possible corporate espionage

  • Writer: The San Juan Daily Star
    The San Juan Daily Star
  • 50 minutes ago
  • 3 min read
Aguirre power station in Salinas, site of a planned 400-megawatt temporary emergency power facility whose cancelled contract is the subject of a legal dispute between energy supplier Power Expectations and the Puerto Rico Electric Power Authority.
Aguirre power station in Salinas, site of a planned 400-megawatt temporary emergency power facility whose cancelled contract is the subject of a legal dispute between energy supplier Power Expectations and the Puerto Rico Electric Power Authority.

By THE STAR STAFF


Power Expectations LLC is calling for a formal investigation into what it describes as a pattern of improper conduct, conflicts of interest, and potential corporate espionage involving attorney Javier Vázquez Morales, a partner at O’Neill & Borges and legal adviser to the Financial Oversight and Management Board.


A statement released over the weekend by the energy supplier’s attorney Abraham Freyre Medina said recent testimony by Energy Czar and Public-Private Partnerships Authority Executive Director Josué Colón Ortiz before the island House of Representatives shed new light on Vázquez’s alleged attempts to interfere with the temporary generation contract awarded to Power Expectations and the Puerto Rico Electric Power Authority (PREPA).


Power Expectations recently sued PREPA to revert the public corporation’s decision to cancel its $5.8 billion contract to provide 400 megawatts (MW) of temporary energy at Aguirre power station in Salinas.


According to the firm, Vázquez made several “inappropriate” attempts to contact Colón, allegedly seeking to influence matters related to the contract. In subsequent communications, Vázquez reportedly claimed that Enchanted Rock, one of the companies listed in the Power Expectations consortium, had been “apparently erroneously included” in the group.


Power Expectations disputes the claim, noting that Vázquez knew firsthand that Enchanted Rock and Power Expectations had signed multiple agreements formalizing their relationship. According to the lawsuit, Enchanted Rock appointed Power Expectations as its exclusive agent in Puerto Rico on March 19, 2025. Power Expectations relied on the authority granted by the memorandum of understanding to designate Jhoby Weeks as the signatory to the 400 MW contract with PREPA. According to the suit, Enchanted Rock had second thoughts about participating in the project because its parent company, ERock Inc., was in the process of making an initial public offering and planned to commence trading on the New York Stock Exchange on June 10 of this year.


“He was lying to a government official,” Freyre Medina said about Vázquez.


The company argues that Vázquez’s dual roles created an untenable conflict: advising Enchanted Rock, advising the oversight board, and simultaneously approaching the energy czar about matters involving Power Expectations. Freyre Medina said the situation worsened when Vázquez and O’Neill & Borges allegedly sought information from executives at Flotek Industries, another company involved in the temporary generation project, that replaced Enchanted Rock in the consortium.


According to Power Expectations, Vázquez interviewed Flotek officials under the guise of offering legal counsel without disclosing that he also represented Enchanted Rock and the oversight board. The company claims he obtained confidential business information before later informing Flotek that a conflict prevented him from representing them.


Power Expectations says it is evaluating whether Vázquez’s actions amount to misappropriation of trade secrets or corporate espionage under Puerto Rico’s Law 80-2011, which governs the protection of commercial and industrial secrets. The company argues that Vázquez knowingly ignored conflicts of interest to obtain sensitive information that could harm Power Expectations and benefit competing entities.


Freyre Medina said the conduct may violate multiple rules of professional conduct established by the Puerto Rico Supreme Court, including rules on confidentiality, duties to prospective clients, and prohibitions on conflicts of interest.


The company insists the controversy cannot be viewed in isolation. It points to a timeline beginning with its contractual relationship with Enchanted Rock in May 2025, its designation as the company’s exclusive representative in Puerto Rico, and extensive coordination between the firms to execute a power purchase and operating agreement with PREPA.


Power Expectations argues that individuals who may have interfered with the contract, including Vázquez, must explain their actions and could face legal consequences.


“Persons like Vázquez Morales and others who may have attempted to interfere with the contract between Power Expectations and PREPA have much to explain,” Freyre Medina said, adding that the company will pursue all available remedies.

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