Tag Archives: PREPA

In Puerto Rico, a new hurricane season threatens the elderly

An elderly woman prays at a chapel of the San Rafael nursing home in Arecibo, Puerto Rico February 14, 2018. Picture taken February 14, 2018. REUTERS/Alvin Baez

By Nick Brown, Jessica Resnick-Ault and Ricardo Ortiz

ADJUNTAS, PUERTO RICO (Reuters) – At 84 years old and battling cancer, Israel Gonzalez Maldonado has lived without electricity for the nine months since Hurricanes Irma and Maria devastated Puerto Rico.

His wife, Zoraida Reyes, 77, struggles to keep the house stocked with fresh food without a refrigerator. At night, she fans her husband so he can sleep.

With another hurricane season starting, older Puerto Ricans have little to protect them from another storm on an impoverished island that remains far from fully recovered. Younger and wealthier people have been moving away for years, leaving an older and sicker population in the hands of an underfunded healthcare system. Tens of thousands more have fled since Maria.

“We wish we could move, at least for the time he has left,” Reyes said of her husband.

Senior citizens make up a larger share of the population here than in all but four U.S. states, according to federal Census data. About half are disabled, more than any state.

Forty percent of seniors rely on food stamps, more than three times the percentage in New York state, the second-highest nationally.

Yet the island has just six nursing homes – with a total of 159 beds – that are certified by the U.S. Centers for Medicare and Medicaid (CMS) to provide rehabilitative services.

Puerto Rico relies instead on a patchwork of about 800 nursing homes licensed by the island’s Department of Family. They are typically private businesses or nonprofit organizations that care for small numbers of elderly people with limited services – and limited budgets, strained further since Maria.

A fragile healthcare system is hardly the only problem that leaves the elderly here – and all Puerto Ricans – vulnerable to another catastrophic storm.

About 7,000 houses and businesses still lack power, after Maria leveled a grid that was ill-maintained before the storm. Power utility PREPA has patched together most of the system but remains years away from making the fundamental improvements needed to enable it to withstand another hurricane.

“The grid needs to be rebuilt – not just the lines,” PREPA Chief Executive Walter Higgins said.

Maria also damaged nearly half the island’s levees. Several major water pumps, used to remove floodwater, remain in disrepair.

“God help us, but we definitely can’t handle any more hurricanes,” said Tania Vazquez, the island’s secretary of natural resources.

Governor Ricardo Rossello’s office declined to comment on the island’s hurricane preparedness or on specific efforts to protect the elderly, referring questions to other agencies.

Glorimar Andujar, Secretary of the Department of Family, said officials learned a lot from Maria about how to prepare for the next storm.

“The emergency plans are much better,” Andujar said, “because we now have an experience that no other generation of agency leaders have experienced.”

ELDERLY AT RISK

Rosa Iturrizaga runs Hostal de Amigos, a small eldercare residence in San Juan.

The home barely broke even before Maria, relying on resident fees of between $2,000 and $3,000 a month. Since then, two of 11 residents moved to the mainland, and insurance has so far not paid for about $40,000 in storm damage, Iturrizaga said. The business carries $500,000 in debt, has fallen behind on loan and tax payments and now loses up to $5,000 a month.

“I don’t know what’s kept me going,” Iturrizaga said. “I love doing this, but I’m looking at other things to do with the land.”

Another private home, the nonprofit Asilo San Rafael in Arecibo, theoretically charges residents $1,200 a month; in reality, only three of 27 residents pay full price, and at least nine pay nothing, said board member Lucila Oliver.

Operating costs run about $700,000 annually, with about $110,000 coming from a handful of subsidies from the island’s central government – subsidies she says have declined sharply in recent years as the now-bankrupt Puerto Rican government fell into a fiscal crisis, Oliver said.

The Department of Family’s Andujar disputed that the subsidies have declined, but Oliver provided Reuters with balance sheets showing a drop in department funding to $59,000 this fiscal year from $80,000 last year.

Maria brought new costs: about $1,200 a month to bring in water tanks, and thousands more on diesel for generators. Oliver said San Rafael is “used to living on the edge,” but says the edge has drawn closer since the hurricanes.

Many elderly and disabled here find a way to get by at home, with little care. Some seek help from the Department of Family, applying for a caregiver to come by just a day or two a week, said Andujar.

Many are turned away, she said.

“The funding is very limited,” she said, “and the need is very big.”

PREPARING FOR ANOTHER HIT

This hurricane season, the department is making sure it has accurate locations for all licensed nursing homes after cell phone service disruptions stymied the response to Hurricane Maria. The homes, Andujar said, are now required to have 30 days of food on hand, and the department has also requested they have generators and water tanks.

She added that about 315,000 elderly people currently receive benefits as part of a $1.27 billion federal allocation under the Nutritional Assistance Program.

The U.S. Federal Emergency Management Agency (FEMA) remains on the island and said it has given municipalities money to improve community resilience.

Dr. Carmen Sanchez Salgado, Puerto Rico’s ombudsmen for the elderly, said her staff has been educating elderly people about the emergency supplies they need.

Charities and nonprofits have also helped. The nonprofit PRxPR, created in response to Maria, is funding solar panels for elderly people and community centers.

One such center in Naguabo had no power as recently as four weeks ago, said Carmen Baez, the group’s co-founder.

“Our installation was it,” she said.

(Reporting by Nick Brown, Jessica Resnick-Ault and Ricardo Ortiz; Additional reporting by Robin Respaut; Editing by Daniel Bases and Brian Thevenot)

Puerto Rico restores power to over 70 percent of customers after blackout

A general view shows buildings after Puerto Rico Electric Power Authority (PREPA), the island's power company, said Wednesday that a major power line failure in southern Puerto Rico cut electricity to almost all customers, in San Juan, Puerto Rico April 18, 2018. REUTERS/Gabriel Lopez Albarran

NEW YORK (Reuters) – Puerto Rico’s power company said it had restored power to over 1.1 million homes and businesses by Thursday morning after a transmission line failure cut service to almost all of the island’s 3.4 million residents the day before.

The Puerto Rican Electric Power Authority, known as PREPA, was working to restore power to the less than 30 percent of customers in the U.S. territory still without power after Wednesday morning’s blackout.

The power line failure in southern Puerto Rico was the latest in a string of operational and political headaches for the bankrupt, storm-ravaged power utility.

The utility has struggled to escape the headlines since Hurricane Maria wiped out power to all of Puerto Rico on Sept. 20.

Maria, the worst storm to hit the island in 90 years, devastated Puerto Rico’s electrical grid, and thousands were still without power at the time of Wednesday’s blackout.

PREPA said on Twitter that several power plants were back in service, including units at Central Aguirre, EcoElectrica, Central Costa Sur, Yabucoa and Palo Seco.

The blackout was caused by the failure of a 230-kilovolt transmission line between the oil-fired Aguirre generating complex in Salinas and AES Corp’s <AES.N> coal-fired power plant in Guayama, PREPA said in a statement on Wednesday.

PREPA estimated on Wednesday that it would take 24 to 36 hours to restore service to all customers that had power before Wednesday’s blackout.

Before the outage, PREPA said 1.43 million homes and businesses had electric service. That is 97.2 percent of the utility’s 1.47 million total customers.

Many of the remaining 40,000 customers have been without power since Hurricane Maria.

PREPA has suffered several blackouts since the storm, including an outage last week affecting about 870,000 customers, and has been in bankruptcy since July, owing some $9 billion to mutual funds, hedge funds and other investors.

(Reporting by Scott DiSavino; editing by Jonathan Oatis)

Puerto Rico governor knocks U.S. Army Corps response to restoring power after hurricane

Cars drive under a partially collapsed utility pole, after the island was hit by Hurricane Maria in September, in Naguabo, Puerto Rico

By Nick Brown and Jessica Resnick-Ault

NEW YORK (Reuters) – Puerto Rico Governor Ricardo Rossello said the U.S. Army Corps of Engineers lacked urgency in restoring power to the storm-hit island, and that it was pushing the clean-up effort down the road.

The Army Corp was tasked as the leading federal agency to oversee power restoration in Puerto Rico about a week after the U.S. territory was devastated by Hurricane Maria.

Speaking to Reuters on a trip to New York, where he plans to meet Governor Andrew Cuomo, Rossello deflected to the Army Corps some of the criticism his administration has faced since Maria made landfall on Sept. 20.

Rossello and the island’s power authority, PREPA, were criticized for initially declining to seek so-called mutual aid from other U.S. public power utilities after the storm knocked out electricity to all of Puerto Rico’s 3.4 million residents.

That decision has become a focal point because it partly spurred PREPA to sign a no-bid contract with private firm Whitefish Energy Holdings – a deal Rossello canceled on Sunday after an uproar over its provisions.

Rossello has since sought mutual aid from utilities in New York and Florida.

But the initial decision to forgo it, he said on Thursday, was due in part to an understanding with the Army Corps that it could help restore power to Puerto Rico within 45 days, and would foot the bill at a time when the island’s bankrupt government could not afford to shell out much cash.

Six weeks after the storm, only about 30 percent of the island’s grid has been restored.

“We are very unsatisfied with the urgency the Corps” has shown, Rossello said. “Everything that has been done right now has been done by PREPA or the subcontractors PREPA has had.”

Jeff Hawk, a spokesman for the Army Corps, said in an emailed statement that “contracts usually take days to a couple of weeks, so we are moving quickly.”

Rossello also said he had some concerns about new parameters laid out on Tuesday by the federal board managing Puerto Rico’s finances, which would require his administration to submit a revised draft of a fiscal turnaround plan for the island by Dec. 22.

“We are in the process of answering to the board some of our concerns with the timelines,” Rossello said, adding that some of the parameters “are appropriate, and some are not, given the lack of information and the level of devastation in Puerto Rico.”

Puerto Rico filed the largest government bankruptcy in U.S. history this year to restructure $72 billion in debt.

Rossello said the revised plan would be centered around a strategy of reducing the size of government, boosting private sector partnerships, and reforming education and healthcare systems.

 

(Reporting by Nick Brown; Editing by Chizu Nomiyama and Susan Thomas)

 

Puerto Rico moves to cancel Whitefish power contract after uproar

: A pickup truck from Montana-based Whitefish Energy Holdings is parked as workers (not pictured) help fix the island's power grid, damaged during Hurricane Maria in September, in Manati, Puerto Rico October 25, 2017.

By Ginger Gibson and David Gaffen

WASHINGTON/NEW YORK (Reuters) – Puerto Rico’s government power company said on Sunday it will cancel a $300 million contract with a tiny Montana company to restore power to the storm-hit U.S. territory after an uproar over the deal.

The contract between Whitefish Energy Holdings and Puerto Rico’s bankrupt power utility came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process. Residents, local officials and U.S. federal authorities all criticized the arrangement.

The cancellation could further complicate Puerto Rico’s most pressing challenge from the territory’s worst storm in 80 years – restoring power to its 3.4 million residents. Nearly six weeks after Hurricane Maria devastated the island, only about a quarter of homes and businesses have power, and the utility has set a goal of having 95 percent of power back by the middle of December.

Several other utilities have been involved in recovery efforts, but Whitefish said they had more than 350 people on the island. Puerto Rico Electric Power Authority’s (PREPA) Director Ricardo Ramos said that he had to consider the “delay risk” of agreeing to cancel the contract. The territory has reached out to officials in Florida and New York, which have already sent people to Puerto Rico, to send more crews in the event that Whitefish departs.

Whitefish said in a statement it was “disappointed” in the decision, adding that it will “only delay what the people of Puerto Rico want and deserve – to have the power restored quickly in the same manner their fellow citizens on the mainland experience after a natural disaster.”

Earlier on Sunday, Puerto Rico’s Governor, Ricardo Rosselló had called for the contract with Whitefish to be canceled, and PREPA’s Ramos said he had accepted the governor’s recommendation.

“Following the information that has emerged, and with the goal of protecting public interest, as governor I am asking government and energy authorities to immediately activate the clause to cancel the contract to Whitefish Energy,” Rossello said in a statement.

Ramos, in a press conference Sunday, noted that the initial enthusiasm from residents over Whitefish employees coming to the island had shifted in the last several days after media reported the details of the contract.

“As soon as this whole issue was interpreted by the tabloids that PREPA has given away $300 million to a company with little experience…if you read that, and you have no light and no water that perception changes abruptly to the extent that the last four days they’ve been throwing stones and bottles” at workers, Ramos said.

Ramos said contract terms with Whitefish meant that the cancellation would become effective 30 days from notice and, signaling potential intricacies, explained that there were “a lot of logistics involved. I believe they have people on the way here.”

“The contract is not canceled as of yet. I am writing today a letter to the board of directors of PREPA asking for a resolution that will allow me to cancel the contract,” Ramos said.

Whitefish, which has a full-time staff of two, said it would complete any work that PREPA wanted it to, and noted their initial efforts “exceeded all other efforts by other parties.”

They said they completed work on two major transmission lines that crossed the island’s mountainous interior, and that PREPA’s decision to contact them “only sped up the repairs.”

Criticism increased after a copy of the contract with PREPA surfaced online on Thursday night and raised more questions, particularly over language blocking oversight of costs and profits.

Ramos noted that the federal contracting process is a long one, and that PREPA “could not wait.”

Workers from Montana-based Whitefish Energy Holdings help fix the island's power grid, damaged during Hurricane Maria in September, in Manati, Puerto Rico October 25, 2017.

FILE PHOTO: Workers from Montana-based Whitefish Energy Holdings help fix the island’s power grid, damaged during Hurricane Maria in September, in Manati, Puerto Rico October 25, 2017. REUTERS/Alvin Baez/File Photo

APPEAL TO NEW YORK, FLORIDA

Efforts to restore power have been bumpy. It took more than a week for a damage assessment to be completed, and PREPA did not immediately ask for what is known as “mutual aid,” whereupon utilities send workers in droves to restore power to hard-hit areas.

Residents have been forced to rely on diesel generators and most of the island remained in darkness.

Eventually, the U.S. Army Corps of Engineers was put in charge of power restoration. Rosselló said he had reached out to Florida and New York in part because of a delay in the arrival of brigades from the Army Corps.

Speaking to CNN, New York Governor Andrew Cuomo said he could send hundreds of work crews to Puerto Rico to assist with the repair work. Florida Governor Rick Scott’s office said he and Rossello “have talked frequently regarding Hurricane Maria recovery. Governor Scott is proud to offer any guidance, advice and assistance they may need.”

PREPA declared bankruptcy in July. It has a $9 billion debt load caused by years of unsuccessful rate collection efforts, particularly from municipal governments and state agencies, and a lack of investment in equipment and maintenance.

The Puerto Rican government is bracing for the possibility that Whitefish would sue for breach of contract if the cancellation is approved, according to sources familiar with discussions. The government already paid Whitefish $8 million and does not expect the U.S. Federal Emergency Management Agency to reimburse that sum, the sources said.

 

(Additional reporting by Tracy Rucinski, Jessica Resnick-Ault, Dan Bases and Nick Brown; Editing by Lisa Von Ahn and Mary Milliken)

 

House panels seek documents on Puerto Rico utility deal

House panels seek documents on Puerto Rico utility deal

WASHINGTON (Reuters) – A U.S. congressional committee on Thursday set a Nov. 2 deadline for the Puerto Rico Electric Power Authority (PREPA) to provide information related to its $300 million contract with a small Montana firm to repair damage to the utility’s infrastructure caused by Hurricane Maria.

“Specifically, the size and terms of the contract, as well as the circumstances surrounding the contract’s formation, raise questions regarding PREPA’s standard contract awarding procedures,” the chairman of the House Natural Resources Committee, Rob Bishop, said in a letter to PREPA’s executive director, Ricardo Ramos.

Media reports that Whitefish Energy Holdings entered the contract with PREPA to fix the utility’s power grid raised questions among Democrats in Congress and others when it was disclosed that the Montana firm won the contract without a competitive bidding process.

The two-year-old company had only two full-time employees and was rapidly hiring workers to tackle the job of patching up the destroyed power grid that has left most of the U.S. territory without electricity for weeks following the destructive hurricane.

While Bishop’s letter said emergency circumstances could “necessitate” emergency relief contracts, “Transparency and accountability in government contracting, however, is not to be compromised.”

Separately, U.S. Representatives including Greg Walden, a Republican, and Frank Pallone, a Democrat, asked Whitefish in a letter to provide documents related to the contract to the Energy and Commerce committee before Nov. 9.

Whitefish founding partner Ken Luce said his company appreciated the efforts to gather information so lawmakers have “confidence in the overall process to support the people of Puerto Rico” and Whitefish’s capabilities.

And two Democratic U.S. senators urged the head of a congressional watchdog office to probe the PREPA contract, saying they were concerned about the bidding process and potential high costs.

Senators Maria Cantwell and Ron Wyden wrote a letter to Eugene Dodaro, the U.S. comptroller general at the non-partisan Government Accountability Office, a copy of which was seen by Reuters.

The senators said they were also concerned about reports of “contemporaneous communications between Whitefish and senior members of the federal executive branch, including Secretary of the Interior Ryan Zinke,” as the contract was being discussed.

A Washington Post report this week said the chief executive of Whitefish, Andy Techmanski, and Zinke acknowledged that they know each other and that one of the secretary’s sons worked at one of Techmanski’s construction sites. Both Zinke’s office and Techmanski said the secretary had no role in Whitefish securing the contract.

The Interior Department did not immediately respond to a request for comment on the senators’ letter.

Puerto Rico Governor Ricardo Rossello has defended the contract saying it was necessary to put workers in place quickly. Whitefish, which has hired workers mostly through subcontracts, has called criticism “unfounded.”

(Reporting by Richard Cowan, Timothy Gardner and Nick Brown in New York; Editing by Richard Chang and Tom Brown)