Power Expectations denies wrongdoing amid contract revocation, federal referrals

Aguirre Power Plant in Salinas (Facebook via Zar de Energia)

By THE STAR STAFF

Power Expectations LLC issued a forceful public statement Monday rejecting what it called “false, malicious and illegal” allegations surrounding its participation in Puerto Rico’s 400‑megawatt (MW) temporary generation project at the Aguirre Power Plant in Salinas.

The remarks by the energy firm’s CEO came days after the Financial Oversight and Management Board revoked approval of the contract and directed the Puerto Rico Electric Power Authority (PREPA) to terminate it, amid allegations by one of the consortium companies that its signature and name were used without its authorization.

In the press release, Power Expectations CEO Eddie Echevarría said the company “categorically rejects any insinuation of fraud or misrepresentation” in the procurement process, insisting that Power Expectations’ involvement was “transparent, documented and conducted through its legal representatives and the official channels established by 3PPO [the Independent Third-Party Procurement Office] and PREPA.”

The company’s response comes at a moment of escalating scrutiny. As previously reported in the STAR, on Aug. 7, ERock Inc., the holding company of Enchanted Rock, told the oversight board that its name and signature were used without authorization in the procurement. The board determined that Enchanted Rock’s participation had been a critical factor in approving the $5.9 billion, 10‑year contract, and that without it, the procurement was “irreparably impaired.” Last Friday, the Board voted to revoke its approval, directing PREPA to terminate the contract and refer the matter to law‑enforcement authorities.

The government had already taken action. The Public‑Private Partnerships Authority and Energy Czar Josué Colón Ortiz referred the allegations to the island Justice Department and federal authorities on June 16, the same day the law firm O’Neill & Borges, representing Enchanted Rock and the Oversight Board, raised concerns about the signature. 3PPO Director Osvaldo Carlo Linares conducted an internal review and later confirmed that the matter had been referred to federal investigators. Carlo also said he tracked Jhoby Weaks, the individual whose name appears on the contract, to Colorado, though attempts to reach him were unsuccessful.

In its statement, Power Expectations insisted that Enchanted Rock did participate in the procurement and that the companies maintained a “dual” relationship: they jointly formed the consortium that submitted the proposal, and Power Expectations served as Enchanted Rock’s exclusive representative for Puerto Rico and the Caribbean.

Echevarría said the companies’ commercial relationship spanned some 15 months and included multiple meetings with PREPA, grid operator LUMA Energy, PREPA power plant fleet operator Genera PR and 3PPO. He said Enchanted Rock CEO Thomas McAndrew “signed the consortium’s operational agreement, provided financial guarantees, signed bid‑bond documents and participated in dozens of meetings and conferences” related to the project.

He added that Power Expectations designated a sales representative authorized to sign service and purchase contracts on Enchanted Rock’s behalf under a mutual understanding agreement that he said remained in effect at the time of contract execution. The company cited Puerto Rico’s Law 75 and Law 21 as providing legal protections for distribution and sales‑representation relationships.

“It is surprising that no one validated our relationship with Thomas [McAndrew] and instead sought out an entity like ERock, which has nothing to do with us,” Echevarría said.

Power Expectations also defended its decision to substitute Enchanted Rock with Flotek Industries after Enchanted Rock informally expressed its intention to withdraw from the project. Echevarría said Flotek’s financial strength and 40‑year operating history made it the most capable replacement. PREPA later confirmed the substitution.

The company also pushed back against public commentary about the contract’s value. Echevarría said Power Expectations is required to invest some $1 billion in the project, while PREPA “does not invest a single cent” in developing the 400-MW plant. He said PREPA is not obligated to purchase the energy produced and prohibits Power Expectations from selling unused energy to other entities.

Power Expectations said it is awaiting final language from PREPA on the construction‑phase performance bond, which it says it will submit despite PREPA making no financial investment in the project.

Echevarría said Power Expectations’ legal counsel has advised limiting public statements about Enchanted Rock and potential legal actions against third parties who “attempted to interfere” with the company’s contractual relationships. He said the company remains committed to producing 400 MW of temporary generation for Puerto Rico.

“We understand the urgency of the country’s energy needs and the responsibility this project carries,” Echevarría said. “We invite everyone to examine the entire record: every document, every signature and every communication. The facts speak for themselves.”