The House Energy and Commerce Committee complained Thursday that it wasn’t getting details from the Puerto Rico state-run utility about its $300 million no-bid contract with Whitefish Energy.
Rep. Fred Upton, R-Mich., the chairman of the committee’s energy panel, said the Puerto Rico Electric Power Authority does not answer when the committee calls.
Upton’s subcommittee held a hearing on electricity restoration and energy supply issues in the wake of hurricanes that completely smashed the U.S. island territory’s energy system.
There is “no heartbeat” at PREPA, they are not responding to phone calls from the committee, Upton said. The committee initiated a probe last week into the PREPA deal with Whitefish, which was rebuilding a 100-mile long stretch of transmission cables on the island. Controversy over possible misappropriation of funds and that the Trump administration may have pushed the company onto the island forced Puerto Rico to cancel the contract with the company on Sunday.
Upton asked an Army Corps of Engineers official who testified at the hearing if the agency had any “advance knowledge” of the contract with Whitefish and another company called Cobra before they were signed.
“We were not consulted. We were not aware,” said Ray Alexander, the Army Corps’ director of contingency planning.
Rep. Bobby Rush of Illinois, the top Democrat on the subcommittee, asked Alexander if the Corps trusts PREPA. “I have no reason not to,” Alexander said.
Rep. Frank Pallone of New Jersey, the top Democrat on the full committee, voiced displeasure will PREPA’s lack of response to the committee about Whitefish.
“Why is it taking so long to restore power?” Pallone asked. “No one seems to be in charge.”
Pallone said the PREPA contract is an example of broad “mismanagement” on the island and paints a picture of “a dire situation … that contradicts the rosy” outlook coming from the White House.
“We need to learn more about how these contracts were awarded,” Pallone said. The Federal Emergency Management Agency said it had no involvement in the Whitefish contract. “My question is ‘why not?’”
“The Trump administration needs to be doing more,” he said. “This is a humanitarian crisis.”
The committee sent letters to FEMA Wednesday asking for a briefing by Administrator William Long on the agency’s role related to the contract.
The committee’s bipartisan letter indicated that it is most concerned with the Whitefish’s apparent desire to limit federal oversight and review. Lawmakers also want details from the company Cobra Acquisitions, which also was working on restoring the grid in Puerto Rico.
The committee said the contracts indicated FEMA review.
“Additionally, according to media reports, PREPA also entered into contract with Cobra Acquisitions, LLC to perform restoration work on Puerto Rico’s electrical grid,” the letter read. “Similar to the Whitefish contract, this contract also indicates FEMA review and approval and contains language which would appear to have the effect of preventing government oversight of the agreement, raising additional questions about the contracting review process for recovery efforts in Puerto Rico.”
The committee wants a briefing by Nov. 15 with FEMA.
