Board revokes approval of the $5.9 billion AEE–Power Expectations contract

On August 14, 2026, the Financial Oversight and Management Board for Puerto Rico announced that its members agreed by vote on three concrete actions: to revoke the approval of the power generation contract between the Puerto Rico Electric Power Authority (PREPA) and Power Expectations LLC, Enchanted Rock LLC, and Reyes Contractor LLC; to order PREPA to terminate the contract; and to refer the matters related to it to the relevant authorities. This note from the September 17, 2026, batch reads that official statement in Spanish —it does not invent a press conference from the 17th— and treats it as a living oversight document on a temporary generation contract that is no longer in effect under Section 204 of PROMESA.

The Board reached that determination following a statement from ERock Inc., the parent company of Enchanted Rock, on August 7, 2026, stating that the company is not a party to this power generation project and that its name and signature were used without authorization. The statement itself highlights that one of the most decisive factors for the Board to approve the contract – of $5.9 billion and 10 years in duration – for the deployment, installation, operation and maintenance of temporary generation units with a total capacity of 400 megawatts (MW) was the participation of Enchanted Rock as a supplier of the equipment. According to the Third-Party Procurement Office (3PPO), responsible for managing the procurement process, Power Expectations lacked the financial capacity and technical knowledge necessary to execute the contract without the participation of Enchanted Rock. Since Enchanted Rock claimed to have never participated in the process, the Board concludes that the contract is irreparably flawed.

The money framework demands careful wording. The statement speaks of a $5.9 billion contract: that is the contract price reported in the approval that is now revoked, not a proven disbursement to the people or a finding of theft. Obligated is not disbursed; approved is not paid; revoked is not a criminal sentence. The Board orders rescinding and refers matters to the relevant authorities; it does not state in this text that a fixed figure has been stolen. Whoever cites the $5.9 billion must label it as the value of the contract under PROMESA's review, not as a cashed check or as a "theft of $5.9 billion."

The contract was formalized after 3PPO carried out a request for proposals in response to the indications of the Puerto Rico Energy Bureau, the independent energy regulator, in March 2025, to address the emergency situation related to a forecasted generation shortfall of between 700 MW and 850 MW, as well as to stabilize system reliability. The Board states that it had full knowledge of this emergency when it reviewed the contract. Nevertheless, it understands that, as of the date of the statement, 66 calendar days since the contract was signed on June 10, 2026, no significant progress has been reported. Despite the urgent need for temporary generation, PREPA did not submit the proposed contract to the Board until January 16, 2026.

The conditional approval by the Board on May 8, 2026, and its final determination on June 2, 2026, were the result of a deliberate process to address considerable concerns regarding the project. Those concerns, communicated to the 3PPO since January and during the following months, included the price and value of the contract, the project schedule, and the financial and execution capacity of Power Expectations, including the performance bond that would guarantee performance. The Board's contract review process relies heavily on the governmental parties signing the agreement to evaluate the counterparties. In accordance with PROMESA, the review policy was designed to restore public trust in government contracting, fostering market competition and consistency with the Fiscal Plans.

The Board expressly declares that it does not take a position regarding the dispute between Power Expectations and Enchanted Rock. Its concern is limited to the accuracy and completeness of the submitted documentation and whether the approval conditions were met. Both the conditional approval of May 8 and the resolution of June 2 reserved the right to reevaluate the approval if it became aware of “any inaccuracy or misrepresentation, whether intentional or not.” With ERock's statement, the contract—according to the announcement—no longer complies with the review policy and, consequently, is not in effect under Section 204 of PROMESA.

For the press covering the grid and the bankruptcy of the AEE, the value of this primary source is methodological. It allows asking: has the AEE already executed the ordered termination? Which specific file was referred to the relevant authorities? What part of the $5.9 billion, if any, was committed or disbursed before the revocation? How is the 700 MW to 850 MW gap now addressed without this 400 MW vehicle? None of these questions are answered with a single headline of “theft.” They are answered with documents from the Board, the 3PPO, the Bureau, and, when they exist, with court orders. The primary source of this note: the August 14, 2026, press release on juntasupervision.pr.gov. Cousin: none; it is not a literal follow-up to an ID already published about this same document.