New Fortress Energy faces contempt citation after skipping third House hearing
Puerto Rico officials announced a $100 million federal lawsuit against the company for alleged repeated failures to supply natural gas, while lawmakers criticized its absence from a public hearing on San Juan port operations.
PhotoThe short version
- Rep. José “Cheito” Hernández Concepción said he will cite NFEnergía LLC under penalty of contempt after no representative appeared at Monday's hearing despite prior notification
- Metro Puerto Rico reported the government will claim $100 million in federal court for excess fossil fuel costs caused by supply failures
- Osvaldo Carlo Linares of 3PPO told the commission New Fortress has a pattern of manipulation and monopoly around the San Juan dock including violating court orders
- NEPR president Edison Avilés Deliz stated costs remain suspended and will not pass to consumers if the government wins the lawsuit
Hearing absence prompts contempt threat
New Fortress Energy (NFE) and its subsidiary NFEnergía LLC did not appear at a public hearing Monday held by the House Transportation and Infrastructure Commission investigating the company's management of the San Juan dock and the entry of the vessel Amur River. Metro Puerto Rico reported the company had sent a communication last week stating its New York-based president could not attend. The commission had required attendance by personnel familiar with Puerto Rico contracts and daily operations.
Commission chairman Rep. José “Cheito” Hernández Concepción announced he will issue a subpoena under penalty of contempt. El Nuevo Día reported this marks the third time NFE has failed to appear before the House. Hernández Concepción stated the absence shows the company has "no responsibility" toward the people of Puerto Rico and that legislative processes must be respected.
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What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
La responsabilidad no es del gobierno de Puerto Rico, es única y exclusivamente de New Fortress
Our translation: The responsibility is not of the government of Puerto Rico, it is solely and exclusively of New Fortress
The source's own statement, as quoted by El Nuevo Día. Not verified by PuertoRico.com.
Officials detail $100 million claim
Osvaldo Carlo Linares, president of Regulatory Compliance Services which administers the Independent Procurement Office (3PPO), testified that the government amended its federal lawsuit against New Fortress to claim $100 million. Metro Puerto Rico reported the figure now includes more than $30 million in recent costs; a prior claim had been around $58 million. Carlo said the amount covers all incidents in which the company failed to deliver gas, forcing use of more expensive diesel.
NEPR president Edison Avilés Deliz told the commission that regulatory orders did not instruct the Puerto Rico Electric Power Authority to stop payments to New Fortress. He said costs are in suspense and have not been passed to consumers. Avilés stated that if the government prevails in court and New Fortress is found responsible under contract clauses, those amounts will not be transferred to ratepayers. El Nuevo Día reported he emphasized "the responsibility is not of the government of Puerto Rico, it is solely and exclusively of New Fortress."
Pattern of noncompliance alleged
Carlo Linares testified that New Fortress maintains a pattern of manipulation and a monopoly near the San Juan dock, including bringing a larger ship than authorized without notifying the court. Metro Puerto Rico reported he described the company as not having been a good business partner. Energy czar Josué Colón Ortiz said ending the contractual relationship remains an option if a repeated pattern of noncompliance is confirmed.
Carlo noted that a Tolling Agreement clause in the current contract allows recourse to a third party when New Fortress cannot deliver gas, and that specific terms for compliance are being evaluated. Colón Ortiz added that 3PPO has instructions not to cease contractual and legal actions. The infrastructure at the bay was built by the company and does not belong to a government entity.
Where the sources differ
Both Metro Puerto Rico and El Nuevo Día agree that New Fortress and its subsidiary failed to appear at the Monday hearing, that this is the third absence, that Rep. José Hernández Concepción will issue a contempt-backed subpoena, and that the government is seeking $100 million in federal court for excess fuel costs. Metro Puerto Rico provides more detail on recent cost additions exceeding $30 million, Carlo Linares' specific allegations of court-order violations and prior use of vessel entry as leverage, and statements from Josué Colón Ortiz and the Tolling Agreement. El Nuevo Día reports Hernández Concepción's comments on possible rate increases of $15-16 million from one incident and quotes him saying he would cancel the contract immediately if it were up to him. The exact prior claim amount of $58 million appears only in Metro Puerto Rico.
What the reports do not say
The sources do not state whether the company provided any written testimony or documents in lieu of appearance, the exact start and end dates of the supply interruption exceeding one month, the current status of the federal lawsuit, whether any penalties have already been paid or withheld, or the specific next steps and timeline for the contempt citation and any potential contract termination proceedings.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official Llueven señalamientos contra New Fortress en la Cámara tras ausentarse de vista pública
- Reporting Llueven señalamientos contra New Fortress en la Cámara tras ausentarse de vista pública
- Reporting New Fortress vuelve a ausentarse de vista pública y enfrenta posible citación por desacato
How we checked this
Metro Puerto Rico and El Nuevo Día both covered the hearing and testimony from Osvaldo Carlo Linares, Edison Avilés Deliz and Josué Colón Ortiz. The $100 million claim amount, pattern-of-manipulation allegations and details on the Tolling Agreement rest solely on Metro Puerto Rico's account while the possible $15-16 million impact from one incident and stronger comments on immediate contract cancellation rest on El Nuevo Día.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.