Puerto Rico Oversight Board May Revoke $5.9 Billion Power Deal

The Financial Oversight and Management Board for Puerto Rico announced it is considering revoking a 10-year, 400-megawatt emergency power contract valued at up to $5.9 billion. The potential revocation follows the discovery of procurement irregularities regarding the partnership composition of the awardee.

Power Expectations, the lead bidder that secured the contract in June 2026, listed Houston-based ERock as a partner. However, ERock later confirmed it was not a member of the three-way partnership. The board stated that this alleged misrepresentation must be investigated and is weighing a referral to relevant authorities.

Further complications include a six-month delay by the Puerto Rico Electric Power Authority in submitting the contract after the solicitation period ended. The oversight board also reported that no significant progress toward providing power had been made nearly two months after the agreement was signed. Flotek Industries is reportedly slated to replace ERock in the deal.