Puerto Rico’s electric utility formally cancelled the $5.9 billion temporary generation contract on Tuesday, four days after the Financial Oversight and Management Board revoked its approval and referred the matter to law enforcement. The 400 megawatts the agreement was meant to deliver are now out of the island’s near-term supply picture, and the question of how the deal cleared multiple layers of government review is the subject of a Senate document demand and both local and federal referrals.
PREPA Executive Director Mary C. Zapata-Acosta notified Power Expectations CEO Eddie Echevarria of the immediate termination in a letter sent Tuesday, according to El Nuevo Dia and NotiCel, which obtained the notice.
Zapata-Acosta cited two independent grounds. The first was the consortium’s failure to deliver a performance bond or letter of credit covering 100 percent of the projected construction phase, valued at $1.18 billion, which the contract required within 15 days of signing. That deadline passed on June 25. The second was the Oversight Board’s August 14 revocation, which directed PREPA to rescind the agreement.
PREPA said in the notice that no order to proceed had been issued, no equipment had been mobilized to project sites and no energy had been generated or billed, and that no termination compensation is therefore owed.
How the contract reached execution
The procurement responded to a March 2025 directive from the Puerto Rico Energy Bureau, the island’s independent energy regulator, to address an anticipated generation shortfall of roughly 700 to 850 megawatts. It was run by the Third-Party Procurement Office, or 3PPO, which is operated under contract by Regulatory Compliance Services Corp. and is intended to keep procurement separate from the operating contracts held by LUMA Energy and Genera PR.
According to the Oversight Board’s own account, PREPA submitted the proposed contract on January 16, 2026. The Board granted conditional approval on May 8 and issued its final determination on June 2. During that review it raised concerns about the contract’s price and value, the project schedule, and Power Expectations’ financial and operational capacity, including the performance bond.
The contract was signed on June 10, 2026, with a consortium of Power Expectations LLC, Enchanted Rock LLC and Reyes Contractor Group Inc. Its value is stated at $5.887 billion over 10 years for 400 megawatts of temporary generation.
The disputed signature
The Board said Enchanted Rock’s participation was one of the most critical factors in its approval, because the company was to supply the equipment. The 3PPO had determined that Power Expectations lacked the financial capacity and technical expertise to perform the contract without it.
On August 7, ERock Inc., Enchanted Rock’s holding company, told the Board that it is not a party to the project and that its name and signature were used without authorization. The Board concluded the procurement was irreparably impaired, voted on August 14 to revoke its approval, directed PREPA to terminate, and referred the contract issues to law enforcement.
The person who appears as signatory for Enchanted Rock is identified on the contract as Jhoby Weaks. Several outlets, including El Nuevo Dia, have identified him as Jobadiah “Joby” Sinclair Weeks.
Power Expectations rejects the allegations. In a statement, Echevarria said the company categorically rejects any insinuation of fraud or misrepresentation and that its participation was transparent, documented and conducted through its legal representatives and the official channels of the 3PPO and PREPA. The company says a commercial relationship with Enchanted Rock ran roughly 15 months, documented through a memorandum of understanding and a consortium operating agreement, and that then-CEO Thomas McAndrew took part in preparing the proposal and signed consortium documents. Power Expectations has asked that the cancellation be reversed.
Osvaldo Carlo Linares, who heads the 3PPO, has publicly defended the procurement, saying Power Expectations held a valid representation agreement allowing it to sign on Enchanted Rock’s behalf and that PREPA received a corporate resolution identifying the authorized signatory.
No court has ruled on the matter and the Oversight Board has not made a finding that fraud occurred.
What government knew, and when
The allegations did not surface publicly until August, but they were raised inside government in June. The law firm O’Neill & Borges, representing Enchanted Rock and the Oversight Board, flagged the signature on June 16. That same day the Public-Private Partnerships Authority referred the matter to Carlo for an internal review.
Also on June 16, Josue Colon Ortiz, who serves as both P3A executive director and Energy Czar, referred the allegations to the Puerto Rico Justice Department and to federal authorities. Justice confirmed receiving the referral.
The Board has said it learned of a letter ERock sent to the 3PPO and the P3A on June 17, called it deeply concerning, and noted that neither office included it in their responses to the Board’s requests for information about the controversy.
Separately, El Nuevo Dia reported this week that ERock’s counsel alleges Power Expectations attempted to blackmail and extort the company, threatening to derail its public offering and to claim $10 billion in damages. Those are allegations and have not been tested in court.
The Flotek substitution
Two days after the contract was signed, Power Expectations informed PREPA that Enchanted Rock’s interest had been assigned to Flotek Industries, a publicly traded Houston company. PREPA later confirmed the substitution, and Flotek’s involvement became public in early August.
The Senate document demand
The Senate approved a document request from President Thomas Rivera Schatz on Monday, directed to Colon and Zapata-Acosta, who have 10 days to respond. It seeks communications, meeting records, evaluations, payments, consortium formation and operating agreements, memoranda of understanding, confidentiality agreements, and representation or brokerage documents involving Power Expectations, Enchanted Rock or ERock, Reyes Contractor Group and any substitute member, including Flotek.
One item in the petition asks why a certificate documenting the corporate name change from Enchanted Rock Inc. to ERock Inc., effective March 17, 2026, was not part of the original procurement file. Rivera Schatz also asks why a copy of that document was obtained through a ChatGPT search on August 9, 2026, and requests the identity of who ran the search, who later supplied the document and to whom it was delivered.
Resident Commissioner Pablo Jose Hernandez, who is also president of the Popular Democratic Party, said Wednesday that there is solid evidence of fraud in the contract and that government officials knew and concealed it from the Board, from PREPA and from the public for nearly two months. He said he intends to pursue from Congress which officials knew, when they knew it, and why the information was not disclosed. Hernandez said he has raised concerns about the process since June 2025.
What it means for the grid
The generation is still needed. The procurement existed because Puerto Rico’s system operates with thin reserve margins and aging units that fail or go offline for repairs.
Attorney Rolando Emmanuelli, a specialist in the federal PROMESA statute, warned in a Radio Isla interview that the absence of the 400 megawatts contemplated in the agreement could worsen the island’s exposure to load shedding. That prospect reaches a neighborhood already managing a second utility disruption: Condado, Ocean Park and Miramar remain in Zone 1 of the AAA water rationing schedule. Emmanuelli also argued the contract was void because it lacked the signature of a party the Board had deemed essential.
Regulators and energy officials have not said publicly how the capacity will be replaced or whether other temporary projects can be brought online in time.
Related coverage: Condado, Ocean Park and Miramar Remain in Zone 1 of the AAA Water Rationing
Sources: Financial Oversight and Management Board for Puerto Rico; El Nuevo Dia; El Vocero; NotiCel; Metro Puerto Rico; San Juan Daily Star; Telemundo Puerto Rico; WAPA TV; Primera Hora.
