Whitefish Energy, the company initially hired to help Puerto Rico restore power after several devastating hurricanes, is stopping its work 10 days early because Puerto Rico Electric Power Authority failed to pay $83 million for Whitefish’s services.
Andy Techmanski, the company’s chief executive officer, sent a letter to the bankrupt utility on Sunday, seeking payment for the work it has performed, in addition to more than $39 million “for anticipated demobilization costs.”
“Whitefish Energy’s contract with PREPA was negotiated in good faith and it was based on PREPA asking Whitefish Energy to take on a number of additional risks and tasks that are normally not part of an emergency response,” Whitefish said in a statement to the Washington Examiner. “We have met the terms of the contract — including completing difficult work on time and under challenging conditions.”
“Despite Whitefish Energy’s diligence and that of its subcontractors, Whitefish Energy’s payments under the contract have been delayed,” the statement continued. “Like typical general contractor agreements, most of Whitefish Energy’s subcontracts provide for payment to subcontractors once Whitefish Energy receives payment from PREPA. Whitefish Energy has been promptly turning over payments to subcontractors once PREPA pays invoices for such work, and in some instances paying subcontractors before Whitefish Energy receives payment from PREPA, but the outstanding invoices for work performed in October has made it impossible to continue in this manner.”
Meanwhile, PREPA said it ceased paying Whitefish following “a communication from one of Whitefish’s subcontractors requesting the stoppage of any payment to the company, since it owed the subcontractor money,” according to ABC News.
Whitefish Energy signed a $300 million contract with the PREPA last month to help the island recover from the hurricane.
The deal was canceled amid growing outrage from U.S. lawmakers over concerns about the contract and Whitefish Energy, including how the small company was and the fact that it is from the same hometown as Interior Secretary Ryan Zinke.
Additionally, Whitefish faced criticism for charging up to $240 an hour for workers and the contract also required a 16-hour, seven-day work week. This allowed contractors and subcontractors to accrue large portions of overtime, according to a report released from the House Natural Resources Committee.
Whitefish said it would continue to work, provided the company was paid what was owed.
The canceled contract is effective Nov. 30. Almost half of the island is still without power.
