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


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."
Thousands of power poles and lines came down during Hurricanes Maria and Irma, and much of the island remains without electricity. The power authority's chief executive, Ricardo Ramos, said Whitefish was awarded the contract because they did not ask for a large payment to get the project going, unlike the other companies that put in bids. Whitefish said in a statement Sunday it was "very disappointed" by the cancellation, and has finished work on two major transmission lines.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
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.
-
'Beyond this damage lies something more insidious'
Instant Opinion Opinion, comment and editorials of the day
-
Hollywood confounded by Trump's film tariff idea
speed read President Trump proposed a '100% tariff' on movies 'produced in foreign lands'
-
Israel approves plan to take over Gaza indefinitely
speed read Benjamin Netanyahu says the country is 'on the eve of a forceful entry'
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine