Puerto Rico's power authority cancels controversial contract with Montana company

Power lines in Puerto Rico.
(Image credit: RICARDO ARDUENGO/AFP/Getty Images)

The governor of Puerto Rico announced Sunday that at his request, the Puerto Rico Electric Power Authority's board will cancel a controversial $300 million contract awarded to Whitefish Energy Holdings, a tiny company from Montana hired to rebuild power lines on the island following two destructive hurricanes.

The deal had drawn widespread scrutiny in part because Whitefish Energy secured the contract while only having two full-time employees, and it's located in Interior Secretary Ryan Zinke's tiny hometown; Zinke's son worked at the company last summer. Zinke has denied playing any part in the contract, and Gov. Ricardo A. Rosselló said while he has not found anything improper about the deal, it has become "a distraction," adding, "I am making this determination because it is in the best interest of the people of Puerto Rico."

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Catherine Garcia, The Week US

Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.