Puerto Rico Watchdog May Halt Power Deal Over Irregularities
(Bloomberg) -- Puerto Rico’s federally appointed financial regulator said it may revoke a 400-megawatt emergency power contract valued at as much as $5.9 billion over
(Bloomberg) -- Puerto Rico’s federally appointed financial regulator said it may revoke a 400-megawatt emergency power contract valued at as much as $5.9 billion over 10 years after a purported bidder said its company’s name and signature were used without authorization. The Financial Oversight and Management Board said in a statement late Friday that a spokesperson for Houston-based Enchanted Rock — which now goes by ERock — confirmed it wasn’t a member of a three-way partnership that was awarded the contract in June. Power Expectations, a Florida company with little prior industrial-scale experience, was the lead bidder on the deal.
It had listed Enchanted Rock and Puerto Rico-based Reyes Contractor LLP as its partners. “That alleged misrepresentation may have been committed in connection with the procurement of the contract must be investigated,” the FOMB said. “The Oversight Board is considering its alternatives including revoking its approval of the Contract and making a referral to the relevant authorities.” The FOMB said it had been informed that Flotek Industries would replace ERock on the deal. ERock isn’t a party to the project, its name and signature were used without authorization, and the company is cooperating with authorities in the review, an ERock spokesperson said.
Power Expectations and Flotek didn’t respond to requests for comment outside business hours. Puerto Rico — which has some of the least reliable and most expensive electricity of any US jurisdiction — opened a bid for emergency power in March 2025 seeking to bolster the grid through the high-demand summer months. An initial 800-megawatt deal was canceled after facing court challenges. A second round was held in July 2025 and resulted in an award in June 2026. Despite the urgency of the proposal, the Puerto Rico Electric Power Authority didn’t submit the contract until six months after solicitation ended, the FOMB said.
While the deal requires the company to begin providing power between 90 and 150 days after execution, “no significant progress” has been reported almost two months since signing the contract, the FOMB said. (Updates with ERock comments in sixth paragraph.) More stories like this are available on bloomberg.com
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