A leaked copy Whitefish’s contract to restore power in Puerto Rico, which circulated online Thursday night, reveals how the energy company and the island’s power utility sought to avoid government oversight of the deal.
The $300 million contract between Whitefish, a small Montana-based energy firm, and the Puerto Rico Electric Power Authority states: “In no event shall [government bodies] have the right to audit or review the cost and profit elements.”
The contract also specifies that Puerto Rico cannot make a claim against Whitefish for work delays or completion.
The contract was signed by PREPA Executive Director Ricardo Rodriguez and Whitefish Energy Holding CEO Andy Techmanski.
Whitefish said in the contract it would hire short-term contract workers to help restore power in Puerto Rico. It had only two full-time employees before Hurricane Maria hit the territory.
The contract suggests each worker will receive $332.41 for accommodations each day, as well as $79.82 for food each day.
Money for airlift travel is also established in the contract: $20,277 for Chinook helicopter airlift; $15,993 for S61 helicopter airlift; and $3,969 for a passenger helicopter.
After a copy of the contract leaked online, it was no longer viewable Friday.
The White House on Friday said it is “not aware” of federal government involvement in choosing Whitefish to do the job.
“Our understanding is the decision to give a contract to Whitefish Energy was made exclusively by Puerto Rico Electric Power Authority,” White House spokesman Raj Shah said in a statement. “The White House is not aware of any federal involvement in the selection.”
The Federal Emergency Management Administration also said Friday morning that it had no role in PREPA’s deal with Whitefish to restore 100 miles of the island’s electric grid, but it has major concerns about it.
It said it is not reimbursing PREPA in making the deal, nor was FEMA money given for the contract to be approved.
FEMA said it “has significant concerns with how PREPA procured” the contract and that it is gathering more information about the contract and the contracting process from PREPA and its legal counsel.
Congress is trying to provide oversight of the contract despite its terms.
Top Republicans on Thursday demanded information from Whitefish and PREPA about the contract.
Rep. Greg Walden of Oregon, the chairman of the House Energy and Commerce Committee, is leading a bipartisan group of lawmakers asking for documents and a briefing from Whitefish. On Thursday, he asked Whitefish to brief the committee by Nov. 9.
Separately, Rep. Rob Bishop of Utah, chairman of the House Natural Resources Committee, on Thursday requested that Ricardo Ramos, PREPA’s executive director, provide documents to explain how Whitefish landed the contract.
Bishop, who is visiting Puerto Rico Thursday, demands that Ramos provide documents to “show under what circumstances PREPA has authority to deviate from normal contracting and procurement processes.”
Instead of activating “mutual aid” arrangements with other utilities, PREPA decided to hire Whitefish, even though other mutual aid agreements in Florida, Texas, and many other states have helped U.S. utilities rebuild following natural disasters.
House Minority Leader Nancy Pelosi has already demanded an investigation by appropriate inspectors general into how Whitefish, which is from the same small town as Interior Secretary Ryan Zinke, earned the power contract.
Sen. Maria Cantwell of Washington, the top Democrat on the Senate Energy and Natural Resources Committee, has asked the Government Accountability Office to investigate.
On Wednesday, Sen. Lisa Murkowski, R-Alaska, the chairwoman of that committee, called for an investigation and promised to examine efforts in Puerto Rico to rebuild the grid at an upcoming hearing.
