Judge Laura Taylor Swain rejected a petition that would have halted the entire process of awarding temporary energy contracts while she evaluates a judicial claim filed by the Power Expectations (PE) consortium. The petition, related to the bankruptcy of the Puerto Rico Electric Power Authority (AEE), sought an interim order and a hearing. However, Judge Swain did not schedule a hearing and instead established a motion calendar until October 27.
The consortium, whose nearly $6 billion contract was canceled by the AEE at the direction of the Fiscal Control Board (JCF), had requested a hearing by October 13, arguing that its interests would be affected if the AEE were allowed to proceed with other temporary energy contracts. The JCF informed the judge that it would assume representation of the AEE in this lawsuit but is not a party to the litigation.
The JCF also argued that the consortium's request for an order to resume the canceled contract is prohibited by the PROMESA law unless the JCF consents, as it involves an act of administration of the assets of a bankrupt entity (the AEE).