Infrastructure

Puerto Rico House Report on Failed $5.9 Billion Power Contract to Be Referred to Investigators

Published Nov 6, 2026, 6:00 AM ASTvia NotiUno

At a glance

  • Puerto Rico is spending an estimated $700,000 a day on diesel generation while the New Fortress Energy terminal agreement is litigated in federal court.
  • Representative Víctor Parés Otero released a report on the failed $5.9 billion Power Expectations contract for 400 MW of temporary generation, canceled in August.
  • The report will be referred to the OPFEI panel, the Justice Department, the FBI, the Inspector General, the Government Ethics Office and the Comptroller, and alleges fraud, attempted bribery and forged signatures.

Why this matters: With the grid short on generation, households and businesses are paying through higher diesel-fueled generation costs of about $700,000 a day while the 400 megawatts the canceled contract was meant to provide never arrived.

Puerto Rico continues to burn diesel to generate electricity at an estimated cost of $700,000 a day, while a federal court weighs an agreement that would let another supplier use New Fortress Energy’s terminal in San Juan Bay. Meanwhile, Representative Víctor Parés Otero announced the filing of a House report on the failed $5.9 billion contract awarded to a consortium led by Power Expectations to provide 400 megawatts of temporary generation.

Parés Otero said the contract was not handled in compliance with the law and regulations, and that the island is paying now for insufficient generation because of a flawed process. He asked who knew about the firm, whether Power Expectations actually complied with the law, and who recommended a contract of nearly $6 billion with incorrect signatures.

He also said the report records inconsistencies in the testimony of engineer Josué Colón and evidence that contradicts it. The report will be referred to the Independent Special Prosecutor Panel, Puerto Rico’s Justice Department, the Office of the Inspector General, the FBI, the Office of the Solicitor General, the Office of Government Ethics and the Comptroller’s Office.

The investigation examined allegations of fraud, attempted bribery and forged signatures tied to the contract, which was canceled in August. Those who testified under oath include energy czar Josué Colón, Independent Procurement Office director Osvaldo Carlo and former Electric Power Authority director Mary Carmen Zapata. The report could lead to new referrals and investigations.

In context (787daily, from public data)

SourceNotiUno