He said the FOMB concerns do not present any new information
Energy Czar Josué Colón said the government has been working for weeks to address problems surrounding the Puerto Rico Electric Power Authority’s (PREPA) 400 MW temporary generation contract, dismissing the Financial Oversight and Management Board’s warning that it may revoke its approval of the $5.8 billion agreement.
Colón, who also heads the Public-Private Partnerships Authority, said the Oversight Board’s August 7 letter outlining concerns about the project does not present any new information. “They are late,” he said during a Sunday briefing. “They are talking about August 7, and I am saying that since mid-June we have been addressing that situation. Nothing in that letter is new to us.”
The contract, signed on June 10, calls for the installation and operation of 400 MW of temporary generation within a 90- to 150-day deployment window at the Aguirre power plant. But 57 days after execution, PREPA has reported no significant progress. The utility confirmed that Enchanted Rock, initially listed as part of the seller consortium, was replaced by Flotek Industries; that the required $1.18 billion performance bond has not been delivered; and that contractual milestones remain unmet. PREPA continues to estimate a November 4 start of operations.
The Oversight Board’s letter, signed by Executive Director Robert F. Mujica Jr., said the Board is evaluating whether to revoke its approval after ERock, formerly Enchanted Rock, reported that its name and signature were used “without our authorization” in the procurement. The Board described the allegation as “extremely troubling,” noting that Enchanted Rock’s participation was a key factor in assessing the consortium’s technical and financial capacity. ERock confirmed to Caribbean Business that the company’s name and signature were used without its authorization. The firm did not answer any questions about Jhoby Weaks, who signed the contract on behalf of Enchanted Rock.
The Board’s concerns extend beyond the signature dispute. Its review found that the procurement was plagued by delays, inconsistent bid-bond valuations, including a $300,000 surety bond for a multibillion-dollar project, and uncertainty about the seller’s ability to finance and deliver the project. A Third-Party Procurement Office (3PPO) financial analysis from August 2025 concluded that Power Expectations lacked the organizational and financial strength to sustain a ten-year contract of this scale.
Despite those issues, the Board conditionally approved the contract in May 2026 because of Puerto Rico’s urgent need for generation. Strict revisions were required and incorporated before execution.
Colón defended the procurement process led by the 3PPO and its director, attorney Osvaldo Carlo Linares. He said the government’s evaluation has relied on representations made by Power Expectations, “in some cases under oath,” and that the administration has followed all required procedures.
He also downplayed the allegation that Enchanted Rock’s signature was used without authorization, saying the matter appears to be a dispute between corporate partners. “We do not have anything beyond a controversy between partners in a corporate arrangement,” he said. “Beyond that, we do not have any additional information.”
Colón said the government has been conducting its own investigations for weeks, independent of the Oversight Board’s letter. “We are doing everything required by law to ensure the contracting process was conducted correctly,” he said, adding that the administration will respond formally to the Board “between today and tomorrow.”
Colón emphasized that the government will not engage in a public back‑and‑forth with the Oversight Board. “If someone wants to make a ‘reality show’ out of this, that is their problem,” he said. “My responsibility is to ensure that matters related to Puerto Rico’s electric system are handled correctly and in the best interest of the state and customers.”
He insisted that the government’s actions are not reactive to the Board’s communication. “We are not addressing this because we received a letter,” he said. “The Board was not part of this. This was already under our responsibility, and we are handling it rigorously, confidentially, and not through the media.”
