Authorization dispute derails $5.9 billion Puerto Rico power contract
A contract for up to 400 MW at the Aguirre Power Plant was cancelled after the Financial Oversight and Management Board found that Enchanted Rock never authorized its participation.
Facing chronic outages, Puerto Rico sought a temporary 400-megawatt supply from the Aguirre Power Plant, signing a contract valued at almost $5.9 billion over a decade. The agreement named Power Expectations, Enchanted Rock and Reyes Contractor as the joint seller, but Enchanted Rock later denied ever authorizing the deal, alleging its signature was forged. Power Expectations countered, pointing to a history of exclusive representation and various guarantees.
The Financial Oversight and Management Board, which had already flagged concerns about Power Expectations’ finances and bid security, ultimately withdrew its endorsement and ordered the contract’s termination, emphasizing the lack of independent proof of the consortium’s capacity. Investigations will examine possible legal violations, but the core failure was a breakdown in verifying who could bind the parties. The case underscores how dispersed responsibilities across agencies can leave critical questions unanswered in multi-billion-dollar public contracts.
Why it matters
It shows how weak oversight can waste billions and delay essential services for citizens.
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