Whitefish Charges Puerto Rico $319 an Hour for Linemen, Then Pays Them $63 an Hour
13 November 2017
Popular
Trees and power lines were downed by Hurricane Maria. U.S. Air Force / SSgt.Michelle Y. Alvarez-Rea
Whitefish Energy, the controversial energy firm repairing Puerto Rico's hurricane-wrecked power grid, is under fresh scrutiny for charging the island's power authority hundreds of dollars more per hour than its linemen receive.
The New York Times reported that the tiny Montana-based company—which doesn't have many of its own employees—contracted electrical workers from Florida at rates that range from $42 to $100 per hour, with an average rate of $63. Whitefish, however, has been charging the Puerto Rico Electric Power Authority (PREPA) $319 an hour for each worker.
<p style="">
The Times pointed out that $319 per hour is wildly above the industry standard, even for emergency work. Notably, the rate is 17 times higher than what it would have cost to hire a lineman in Puerto Rico.
</p><p style="">
Whitefish spokesman Chris Chiames defended its costs to the newspaper, explaining that "simply looking at the rate differential does not take into account Whitefish's overhead costs" built into the rate.
</p><p style="">
"We have to pay a premium to entice the labor to come to Puerto Rico to work," Chiames said, adding that many workers are being paid overtime.</p><p class="shortcode-media shortcode-media-twitter_embed">
</p><div id="8cfaa" class="rm-shortcode" data-rm-shortcode-id="9ZMC5O1576664184"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="930061847411154945" data-partner="rebelmouse"><div style="margin:1em 0">THREAD: Some of the Florida linemen are making 1/7th of what Whitefish is charging Puerto Rico's electric company t… https://t.co/QoeOe7hsSF</div> — Frances Robles (@Frances Robles)<a href="https://twitter.com/FrancesRobles/statuses/930061847411154945">1510578998.0</a></blockquote></div>
<p></p><p style="">
Whitefish is also billing PREPA about $4,000 an hour to rent a helicopter—more than double what is typically charged.
</p><p style="">
On top of that, the Whitefish contract states: "In no event shall [government bodies] have the right to audit or review the cost and profit elements."
</p><p class="shortcode-media shortcode-media-twitter_embed" style="">
</p><p style="">
Whitefish's $300 million contract was canceled by Puerto Rico governor Ricardo Rosselló in late October after
<a href="https://www.ecowatch.com/whitefish-puerto-rico-grid-2501263875.html" target="_blank">questions were raised</a> about how the two-year-old firm from Interior Sec. <a href="http://www.ecowatch.com/tag/ryan-zinke" target="_blank">Ryan Zinke</a>'s hometown landed such a lucrative, no-bid contract. However, they still have until Nov. 30 to work even after the cancellation.</p><p>Whitefish employed only two full-time staff members before the Category 4 <a href="https://www.ecowatch.com/tag/hurricanes">hurricane</a> struck Puerto Rico on Sept. 20. The FBI is now investigating the contract.
</p><p style="">
Last week, much of Puerto Rico, including its capital San Juan, experienced
<a href="https://www.ecowatch.com/puerto-rico-blackout-2508337612.html" target="_blank">another major blackout</a> after a major north-south transition line (repaired by Whitefish) energy had failed. The island was left with only 18 percent power generation on Thursday.
</p><p style="">
The power outage was another reminder of the island's painstaking recovery more than fifty days after
<a href="https://www.ecowatch.com/tag/hurricane-maria" target="_blank">Hurricane Maria</a> struck. One resident said it was "hard not to feel discouraged" and called the power failure "one step forward and three steps back."
</p><p style="">
<a href="http://www.status.pr/" target="_blank">As of Sunday</a>, about 48 percent of electricity has returned. </p>
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Puerto Rico's Massive Blackout Underscores Island's Fragile Electrical System
10 November 2017
Popular
The aftermath of Hurricane Maria, Sept. 21, 2017. U.S. Department of Defense
More than 80 percent of Puerto Rico was once again left without power after a main north-south transmission line failed.
According to the Puerto Rico Electric Power Authority (PREPA), the island was left with only 18 percent power generation on Thursday. The capital San Juan and other major cities were plunged back into darkness.
<p>
As Vox
<a href="https://www.vox.com/energy-and-environment/2017/11/9/16630686/massive-power-outage-puerto-rico-whitefish-blackout" target="_blank">noted</a>, the blackout was another reminder of the island's painstaking recovery fifty days after <a href="https://www.ecowatch.com/tag/hurricane-maria">Hurricane Maria</a> struck. One resident said it was "hard not to feel discouraged" and called the massive power failure "one step forward and three steps back."
</p><p class="shortcode-media shortcode-media-twitter_embed">
</p><p>
Incidentally, the 230-kilovolt transmission line was previously repaired by the controversial Montana energy firm
<a href="https://www.ecowatch.com/tag/whitefish">Whitefish</a> Energy, whose no-bid $300 million contract to fix the U.S. territory's power grid is under FBI investigation.
</p><p>
But in a statement to
<a href="https://www.buzzfeed.com/nidhiprakash/most-of-puerto-rico-just-lost-power-again-after-a-line?utm_term=.tpqVZajWy5#.rbpr3eDJG7" target="_blank">BuzzFeed News</a>, the company denied culpability.
</p><p>
"None of the issues reported today with the outage have anything to do with the repairs Whitefish Energy performed," spokesperson Brandon Smulyan said.
</p><p>
The power went out about 11:30 a.m. local time and was repaired Thursday night, Ricardo Ramos Rodriguez, executive director of PREPA, told CNN.
</p><p>
Indeed, <a href="http://www.status.pr/" target="_blank">as of Friday Morning</a>, about 43 percent of capacity has returned.
</p><p class="shortcode-media shortcode-media-twitter_embed">
</p><div id="2362b" class="rm-shortcode" data-rm-shortcode-id="S0JNT81576664185"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="928781553731276800" data-partner="rebelmouse"><div style="margin:1em 0">Tonight, in Puerto Rico.
Day 50 after Maria https://t.co/LtVcTQSiFK</div> — David Begnaud (@David Begnaud)<a href="https://twitter.com/DavidBegnaud/statuses/928781553731276800">1510273752.0</a></blockquote></div>
<p></p><p>
"It was a mechanical issue on the line, could have happened at any line," PREPA official Fernando Padilla explained. "It's being patrolled and repaired by PREPA."
</p><p>
The Sept. 20 Category 4
<a href="https://www.ecowatch.com/tag/hurricane">hurricane</a> knocked out power throughout Puerto Rico leaving much of its 3.4 million residents without electricity.
</p><p>
The latest outage has extended the largest and longest blackout <a href="http://rhg.com/notes/americas-biggest-blackout" target="_blank">in American history</a> and a reminder of Puerto Rico's continued power woes.
</p><p>
As Peter Fox-Penne <a href="https://www.ecowatch.com/solar-microgrids-puerto-rico-2508090744.html" target="_blank">wrote</a> for the <a href="https://theconversation.com/why-solar-microgrids-are-not-a-cure-all-for-puerto-ricos-power-woes-86437" target="_blank">Conversation</a>, "Almost half its generation was from old, very expensive oil-fired plants, <a href="https://www.utilitydive.com/news/puerto-rico-considers-privatization-for-islands-generation/507999/" target="_blank">resulting in prices about 22 cents per kilowatt hour</a>, among the highest in the U.S. The island has several solar photovoltaic farms but gets about <a href="https://www.eia.gov/state/print.php?sid=RQ" target="_blank">46 percent of its power from oil and only about 3 percent from solar</a>."
</p><p>
Resident Marianne Sanchez wrote on Instagram: "Sad to report that today, the little power that was already restored … collapsed. Once again the whole island is without power. Although it is expected to be restored late in the evening or tomorrow, this is a not too friendly reminder of how fragile our power system is."
</p><div id="f2d45" class="rm-shortcode" data-rm-shortcode-id="9A5FLW1576664185"><blockquote class="instagram-media" data-instgrm-captioned="" data-instgrm-version="4" style=" background:#FFF; border:0;
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<a href="https://www.instagram.com/p/BbSV46UAxZc/" style=" color:#000; font-family:Arial,sans-serif;
font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none;
word-wrap:break-word;" target="_top">Marianne on Instagram: “Sad to report that today, the little power that was already restored … collapsed. Once again the whole island is without power. Although…”</a></p>
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Controversy Remains After Cancellation of Whitefish Energy's Puerto Rico Contract
30 October 2017
Popular
Fallen trees, power lines and debris kept the municipality of Cayey isolated for days after Hurricane Maria struck. Puerto Rico National Guard / Flickr
Puerto Rico's electric power authority (PREPA) has cancelled Whitefish Energy Holdings' controversial $300 million contract to help rebuild the U.S. territory's Hurricane Maria-wrecked power grid.
The small Montana-based power company said it was "very disappointed" with the decision which came after Gov. Ricardo Rosselló called on PREPA to "immediately" cancel the deal.
<p style="">
Many
<a href="https://www.ecowatch.com/whitefish-puerto-rico-grid-2501263875.html" target="_blank">questions have been raised</a> about how the two-year-old firm from Interior Sec. <a href="http://www.ecowatch.com/tag/ryan-zinke" target="_blank">Ryan Zinke</a>'s hometown landed such a lucrative, no-bid contract. Whitefish employed only two full-time staff members before the Category 4 storm struck Puerto Rico more than a month ago.<br>
</p>
<p>
"The decision will only delay what the people of Puerto Rico want and deserve—to have the power restored quickly in the same manner their fellow citizens on the mainland experience after a natural disaster," Whitefish said in a statement. "We will certainly finish any work that PREPA wants us to complete and stand by our commitments knowing that we made an important contribution to the restoration of the power grid since our arrival on the island on October 2."
</p>
<p>
<span></span>Zinke and the <a href="https://www.ecowatch.com/trump-watch/" target="_blank">White House</a> have denied playing any role in securing the deal. Whitefish CEO Andy Techmanski, who told <a href="https://www.nbcnews.com/storyline/puerto-rico-crisis/whitefish-ceo-defends-puerto-rico-deal-says-critics-witch-hunt-n815356" target="_blank">NBC News</a> that he first made contact with Puerto Rico officials through LinkedIn, also called it a "witch hunt looking for something that does not exist."
</p>
<p class="shortcode-media shortcode-media-twitter_embed">
</p><div id="4d588" class="rm-shortcode" data-rm-shortcode-id="322ESJ1576663896"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="924958663097372672" data-partner="rebelmouse"><div style="margin:1em 0">“You used LinkedIn to get a $300 million contract?”
CEO Whitefish Energy tells @gabegutierrez he found PREPA on Lin… https://t.co/DGh2tuoZOU</div> — TODAY (@TODAY)<a href="https://twitter.com/TODAYshow/statuses/924958663097372672">1509362304.0</a></blockquote></div>
<p></p>
<p>
PREPA CEO Ricardo Ramos
<a href="http://money.cnn.com/2017/10/29/news/whitefish-puerto-rico-rossello/index.html" target="_blank">said</a> at a Sunday press conference that the contract is "not canceled as of yet," as it requires 30 days of prior notice.
</p>
<p>
Ramos said he will need to talk to Whitefish, noting, "the plan is not to demobilize them either, we will let them finish what they have started.
<a href="http://estatus.pr/" target="_blank">As of Sunday</a>, less than 30 percent of Puerto Rico's electricity has been restored.
</p>
<p style="">
According to Whitefish, 350 workers have been brought to the island and the company still plans to have 500 total workers this week. It said it had helped restore power to hospitals, businesses and residents of Manati, and will soon complete work on a project to restore power to 500,000 people in the city of San Juan.
</p>
<p>
"We only wish the best for the great people of
<span style="background-color: initial;">Puerto Rico," the firm continued it its statement.</span> "We are very proud of our contributions to the island's recovery and proud of the tremendous work that our team has done under very challenging conditions."
</p>
<p>
The controversy is unlikely to go away soon. The House Energy and Commerce and Natural Resources Committees are both investigating the issue.
</p>
<p style="">
Eyebrows are
<a href="https://twitter.com/kenklippenstein/status/924667733433815041" target="_blank">being raised</a> at the contract itself, which allows for unspecified "allowance for profit on work done" in the event of cancellation.
</p>
<p class="shortcode-media shortcode-media-twitter_embed" style="">
</p>
<p style="">
On top of that, government bodies do not have the right to "audit or review the cost and profit elements."
</p>
<p class="shortcode-media shortcode-media-twitter_embed">
</p>
<p style="">
<a href="http://thehill.com/policy/energy-environment/357559-week-ahead-puerto-ricos-whitefish-contract-under-scrutiny" target="_blank">The Hill</a> reported that FEMA Administrator Brock Long will be testifying at Wednesday's Homeland Security hearing, where lawmakers are sure to grill officials over the contract as well as the federal government's broader response to this season's other devastating hurricanes.<br>
</p>
<p style="">
The agency
<span style="background-color: initial;">on Friday</span> said it also had "significant concerns" with the deal—which FEMA has to pay for even though PREPA signed the contract.
</p>
<p style="">
<span></span>"Based on initial review and information from PREPA, FEMA has significant concerns with how PREPA procured this contract and has not confirmed whether the contract prices are reasonable," FEMA <a href="http://thehill.com/policy/energy-environment/357486-fema-has-significant-concerns-with-puerto-ricos-300m-power" target="_blank">said in its statement</a>.<br>
</p>
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Trump-Linked Company Restoring Puerto Rico's Power Grid Feuds With San Juan Mayor
26 October 2017
Popular
www.youtube.com
The company tasked with restoring Puerto Rico's electricity grid has apologized after feuding with the mayor of San Juan and threatening to pull its services.
"Mayor Cruz and everyone in Puerto Rico—on behalf of our employees, we would like to apologize for our comments earlier today, which did not represent who we are and how important this work is to help Puerto Rico's recovery," Whitefish Energy tweeted.
<p>
"We have a strong team on the ground, we are working hard and making good progress. Our goal is to continue to do all we can to help everyone in Puerto Rico in this time of need."
</p><p>
<a href="https://www.ecowatch.com/whitefish-puerto-rico-grid-2501263875.html" target="_blank">Questions have been raised</a> about how the company from Interior Sec. <a href="http://www.ecowatch.com/tag/ryan-zinke" target="_blank">Ryan Zinke</a>'s Montana hometown landed such a lucrative government bid. Whitefish only employed only two full-time staff members before <a href="https://www.ecowatch.com/tag/hurricane-maria" target="_blank">Hurricane Maria</a> struck Puerto Rico more than a month ago.
</p><p>
The tweet was sent after Mayor <a href="https://www.ecowatch.com/tag/carmen-yul%C3%ADn-cruz">Carmen Yulín Cruz </a>demanded more transparency about the tiny energy firm's $300 million contract which bypassed a formal bidding process.
</p><p>
The <a href="https://www.washingtonpost.com/national/small-montana-firm-lands-puerto-ricos-biggest-contract-to-get-the-power-back-on/2017/10/23/31cccc3e-b4d6-11e7-9e58-e6288544af98_story.html?utm_term=.57f6b14651a9" target="_blank">Washington Post</a> reported earlier this week that Whitefish Energy CEO Andy Techmanski has ties to Secretary Zinke. One of Zinke's sons once worked at one of Techmanski's construction sites. The secretary's office and Whitefish deny that the alleged link lead to the contract.
</p><p>
Democrats on the House Natural Resources Committee demanded a "full investigation" into the contract. House Natural Resources Chairman Rob Bishop (R-UT) also told reporters he has "questions" about the bid selection process.
</p><p>
"The contract should be voided right away, and a proper process which is clear, transparent, legal, moral and ethical should take place," Cruz told <a href="https://www.yahoo.com/news/san-juan-mayor-calls-cancelling-alarming-contract-puerto-rican-power-repairs-132636239.html" target="_blank">Yahoo News</a> Wednesday.
</p><p>
"It seems like what the Puerto Rican people are going to be paying for, or the American people are going to be paying for, is an intermediary that doesn't know what is at stake here and that really has to subcontract everything. What we need is somebody that can get the job done and that has the expertise to get the job done."
</p><p>
Later on Wednesday, Whitefish <a href="https://twitter.com/WhitefishEnergy/status/923240245822394368" target="_blank">replied</a>: "We share the mayor's frustration with the situation on Puerto Rico, but her comments are misplaced. Whitefish has more than 300 workers on the island and that number is growing daily. We are making progress and doing work when others are not even here. We find her comments to be very disappointing and demoralizing to the hundreds of people on our team that have left their homes and families and have come here to help the people of Puerto Rico."
</p><p>
Tensions only ramped up from there. Cruz, who has sparred with <a href="https://www.ecowatch.com/trump-watch/">President Trump</a> over the administration's <a href="https://www.ecowatch.com/tag/hurricanes">hurricane</a> relief efforts, sent off a series of tweets.
</p><p>
"You think I am the only one in the world who has commented on this?" she wrote. "What is it about women having an opinion that irritates some?"
</p><p style="">
"If @WhitefishEnergy feels that asking for transparency is "misplaced," what are they afraid we will find," she added.
</p><p>
Whitefish then shot back, "We've got 44 linemen rebuilding power lines in your city & 40 more men just arrived. Do you want us to send them back or keep working?"
</p><p class="shortcode-media shortcode-media-twitter_embed">
</p><div id="d9464" class="rm-shortcode" data-rm-shortcode-id="3SWNF41576662850"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="923269837815795712" data-partner="rebelmouse"><div style="margin:1em 0">@CarmenYulinCruz We’ve got 44 linemen rebuilding power lines in your city & 40 more men just arrived. Do you want u… https://t.co/LtoK507XHE</div> — Whitefish Energy (@Whitefish Energy)<a href="https://twitter.com/WhitefishEnergy/statuses/923269837815795712">1508959657.0</a></blockquote></div>
<p></p><p style="">
The company's tweet only raised more concerns. "They are threatening not to do their job which frankly is quite irregular for a company hired to the work for the public sector," Cruz wrote.
</p><p>
Whitefish finally issued an apology Wednesday night.
</p><p>
Cruz has not issued a direct response but retweeted several posts, including:
</p><p class="shortcode-media shortcode-media-twitter_embed">
</p><div id="c8fd2" class="rm-shortcode" data-rm-shortcode-id="KYFMB91576662850"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="923381013560127489" data-partner="rebelmouse"><div style="margin:1em 0">You just don't get it. We see you as leaches. Work is "important" for you because it'll make you millionaires while… https://t.co/hCA45EZjF2</div> — Armando Valdés (@Armando Valdés)<a href="https://twitter.com/armandovaldes/statuses/923381013560127489">1508986163.0</a></blockquote></div>
<p></p><p class="shortcode-media shortcode-media-twitter_embed">
</p><div id="e7255" class="rm-shortcode" data-rm-shortcode-id="412F391576662850"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="923380065185992706" data-partner="rebelmouse"><div style="margin:1em 0">When are you gonna erase the two offensive tweets? #SorryNotSorry https://t.co/HLmjMkGGgG</div> — Pedro Julio Serrano (@Pedro Julio Serrano)<a href="https://twitter.com/PedroJulio/statuses/923380065185992706">1508985937.0</a></blockquote></div>
<p></p>
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Two-Person Company Gets $300 Million Contract to Restore Puerto Rico's Power Grid, Raising Questions
25 October 2017
Popular
Whitefish Energy Holdings, LLC / Facebook
Bipartisan lawmakers expressed concern Tuesday over the contract to restore Puerto Rico's power grid being given to a tiny energy firm from Interior Sec. Ryan Zinke's hometown.
The Puerto Rico Electric Power Authority signed a $300 million contract last week with two-year-old Montana-based Whitefish Energy, which employed only two people when Hurricane Maria hit the island last month.
<p style="">Whitefish is tasked with restoring more than 100 miles of transmission lines on the island, where 75 percent of the population remains without power. Democrats on the House Natural Resources Committee are pushing for a "full investigation" into the contract, while House Natural Resources Chairman Rob Bishop (R-UT) told reporters he has "questions" about the bid selection process.</p><p style="">As reported by the New York Times:</p><p style="margin-left: 20px;">"'Absolutely outrageous,' said Eduardo Bhatia, a Puerto Rican opposition senator who wrote an energy law in 2014. 'A two-employee company from Whitefish, Mont., gets a $300 million contract out of nowhere? Based on what?'</p><p style="margin-left: 20px;">Mr. Bhatia said the authority did not appear to have made any open requests for proposals, to have performed any regular background checks or to have followed normal safeguards and checks before awarding the contract.</p><p style="margin-left: 20px;">The House Committee on Natural Resources said on Tuesday that it was looking into the contract. Parish Braden, the committee's communications director, said that members of the panel would travel to Puerto Rico this week to seek more answers about the details of the contract and how it was reached."</p><div class="rm-embed embed-media" style="">"Congress needs to understand why the Whitefish contract was awarded and whether other, more cost-effective options were available," Rep. Raúl M. Grijalva, D-Ariz., the senior Democrat on the Natural Resources Committee, said in a statement.</div><p style="">The <a href="http://www.bbc.com/news/world-us-canada-41738955" target="_blank">BBC</a> reported that "<a href="https://www.thedailybeast.com/dollar300m-puerto-rico-recovery-contract-awarded-to-tiny-utility-company-linked-to-major-trump-donor" target="_blank">questions have been raised</a> about whether political donations made to President <a href="http://www.ecowatch.com/trump-watch/">Donald Trump</a>'s campaign and allied groups could have influenced the decision.</p><p style="margin-left: 20px;">A review of federal election data showed that a founding partner in HBC Investments, one of the two Texas firms that backs Whitefish Energy Holdings—had donated $2,700 to Mr. Trump's presidential campaign, as well as $20,000 to a group that supported the White House bid."</p><p style=""><strong><span></span>For a deeper dive:</strong></p><p style=""><a href="https://www.nytimes.com/2017/10/24/us/from-montana-to-puerto-rico-a-small-firm-strikes-a-powerful-deal.html?_r=0" target="_blank">New York Times</a>, <a href="https://www.washingtonpost.com/national/small-montana-firm-lands-puerto-ricos-biggest-contract-to-get-the-power-back-on/2017/10/23/31cccc3e-b4d6-11e7-9e58-e6288544af98_story.html?utm_term=.ba96d9ac0c7b" target="_blank">Washington Post</a>, <a href="http://www.npr.org/sections/thetwo-way/2017/10/24/559864118/tiny-montana-firm-gets-300-million-contract-to-help-restore-power-in-puerto-rico" target="_blank">NPR</a>, <a href="https://www.usatoday.com/story/news/world/2017/10/25/two-person-firms-300-million-puerto-rico-contract-raises-eyebrows/796882001/" target="_blank">USA Today</a>, <a href="http://www.bbc.com/news/world-us-canada-41738955" target="_blank">BBC</a>, <a href="http://thehill.com/policy/energy-environment/356915-democrats-call-for-investigation-into-puerto-rico-utility-deal" target="_blank">The Hill</a>, <a href="https://www.reuters.com/article/us-usa-puertorico-power/puerto-rico-whitefish-defend-controversial-power-contract-idUSKBN1CU020" target="_blank">Reuters</a></p><p style=""> <em>For more </em><a href="http://ecowatch.com/climate-change-news/" target="_blank"><em>climate change</em></a><em> and </em><a href="http://ecowatch.com/business/renewables/" target="_blank"><em>clean energy</em></a><em> news, you can follow Climate Nexus on </em><a href="https://twitter.com/ClimateNexus" target="_blank"><em>Twitter</em></a><em> and </em><a href="https://www.facebook.com/ClimateNexus/" target="_blank"><em>Facebook</em></a><em>, and sign up for daily </em><a href="http://climatenexus.us4.list-manage1.com/subscribe?u=d1f5797e59060083034310930&id=7c84c08aaa" target="_blank"><em>Hot News</em></a><em>.</em></p>
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