Order comes as Power Expectations contract faces intensifying scrutiny over illegal signature
Puerto Rico’s Energy Bureau has ordered private operators LUMA Energy and Genera PR, along with the Puerto Rico Electric Power Authority (PREPA), to produce a verified, consolidated report that specifies exactly how much temporary generation is under contract, what conditions remain outstanding, and when each block of emergency capacity will be available to the grid.
The directive, issued on August 12, comes amid growing concern about irregularities in the stalled 400-megawatt contract awarded to Power Expectations and the broader fragility of the island’s electric system.
The Bureau said the July collaborative report filed by the utilities showed progress in some areas but left major stabilization activities incomplete, dependent on other projects, or without firm completion dates. Most critically, the report contained conflicting information about the 800 megawatts of temporary emergency generation that were supposed to support the retirement of older units.
Genera reported that the 800 MW “remains pending procurement by 3PPO,” while PREPA stated that the Financial Oversight and Management Board had conditionally approved contracts for Power Expectations and Gotham on May 8, that Power Expectations’ contract was signed June 10, and that Gotham and Javelin remain under review. The Bureau said it now requires a single, current account of how much emergency generation is actually under contract and when it will materialize.
The urgency of the order reflects the system’s recent instability. In July, failures at Costa Sur Unit 6, San Juan Unit 6, EcoEléctrica and Aguirre Unit 2 triggered repeated load‑shedding events, including one that affected more than 377,000 customers at its peak. The Bureau said these events underscore the need for firm dates and a consolidated critical‑path schedule for all remaining stabilization work.
The temporary generation portfolio has been further complicated by the controversy surrounding Power Expectations’ 400 MW contract. Fifty‑seven days after execution, PREPA reported no installation work, no completed milestones and no delivery of the required $1.18 billion performance bond. The Oversight Board warned on August 7 that it may revoke its approval after ERock—formerly Enchanted Rock—told federal officials its name and signature were used “without our authorization” in the procurement. PREPA later confirmed that Enchanted Rock was replaced by Flotek Industries shortly after execution, but the Board noted that Enchanted Rock’s participation had been a critical factor in determining that the seller consortium had the technical and financial capacity to deliver the project.
The Board’s concerns were not limited to the signature dispute. Its review found that the procurement suffered from delays, inconsistent bid‑bond valuations, uncertainty about the seller’s ability to finance the project, and a lack of enforceable milestones in the initial contract draft. A 3PPO financial analysis from August 2025 concluded that Power Expectations lacked the organizational and financial strength to sustain a ten‑year contract valued at up to $5.8 billion.
Osvaldo Carlo, president of the Third‑Party Procurement Office, publicly said the matter has already been referred to federal authorities. He also said he tracked Jhoby Weaks, the individual whose name appears signing on behalf of Enchanted Rock on the Power Expectations contract, to Colorado, but has been unable to reach him.
Caribbean Business attempted to contact Weaks at the email address listed in the contract, but the message bounced, suggesting the address is inactive or incorrect. Carlo maintains that Power Expectations had a representation agreement allowing it to sign on Enchanted Rock’s behalf and that PREPA received a corporate resolution identifying the authorized signatory. He has described the dispute as a legal conflict between corporate partners that escalated after Enchanted Rock reorganized under a new parent entity.
Energy Director Josué Colón said the government has been addressing the contract’s irregularities since mid‑June, weeks before the Oversight Board’s letter, and rejected entering a public dispute with the Board. He said the administration is conducting its own investigation to determine whether representations made during the procurement were lawful and accurate. Colón emphasized that the government has not found evidence of wrongdoing beyond a possible dispute between corporate partners, but confirmed that multiple inquiries remain active.
The Energy Bureau’s order extends beyond the Power Expectations contract. It requires firm timelines for the 244 MW flexible generation program, Genera’s 430 MW battery storage program, the 594.4 MW of storage under the ASAP Standard Offer 1 program, the four 25 MW LUMA BESS projects that remained inactive in FEMA’s portal for nearly a year, and critical repairs at Aguirre, San Juan, Costa Sur and Palo Seco. The Bureau warned that failure to comply may result in administrative fines of up to $25,000 per day under Act 57‑2014.
