Power Expectations contract referred to Justice Dept.

By THE STAR STAFF

The Public‑Private Partnerships Authority (P3A) and the Office of the Energy Czar announced Thursday that they have referred allegations involving the Power Expectations temporary generation contract to the Puerto Rico Department of Justice and to federal authorities for independent review.

According to the agencies, the referral concerns questions about the legitimacy of the signature used to execute the June 10, 2026 contract between the Puerto Rico Electric Power Authority (PREPA) and the consortium composed of Power Expectations, Enchanted Rock and Reyes Construction. As previously reported by the STAR, the allegations include the purported unauthorized use of Enchanted Rock’s name and a signature attributed to the company during the competitive procurement process for temporary generation under RFP No. 3PPO‑0314‑20‑TPG2.

The procurement was administered by the Third‑Party Procurement Office (3PPO), operated by Regulatory Compliance Services Corp. (ReComS), which has been contracted by the P3A since 2023 to manage certain electricity sector procurements. The use of an independent procurement office is intended to prevent conflicts of interest related to the operation and maintenance contracts held by LUMA Energy and Genera PR, in accordance with Act 120‑2018.

Energy Czar and P3A Executive Director Josué Colón Ortiz said the government acted immediately upon receiving the allegations. 

“We will not prejudge any person or entity, but we will not ignore an allegation of this nature either,” Colón Ortiz said, adding that the referral does not constitute a finding of criminal conduct. “We have put the information in the hands of state and federal authorities so that each can make the appropriate assessment within their jurisdiction.”

The allegations were first raised on June 16 by the law firm O’Neill & Borges, representing Enchanted Rock and the Financial Oversight and Management Board. That same day, the P3A referred the matter to 3PPO Director Osvaldo Carlo for an internal investigation, including a review of the procurement record and fact‑finding. Enchanted Rock representatives were placed in direct communication with the 3PPO to provide documentation.

After reviewing the 3PPO’s findings, the P3A determined that the nature of the allegations required referral to authorities with investigative authority.