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Energy

PIP Files Resolution to Cancel All Government Contracts with New Fortress Energy

Puerto Rican Independence Party lawmaker Denis Márquez Lebrón introduced House Joint Resolution 427 directing three public agencies to terminate agreements with NFE and its subsidiaries.

Denis Márquez Lebrón, member of the Puerto Rico House of RepresentativesPhoto
Denis Márquez Lebrón in an official portrait Photo: House of Representatives of Puerto Rico / Wikimedia Commons, Public domain (cropped)

The short version

  • NotiCel reports that PIP spokesman Denis Márquez Lebrón filed House Joint Resolution 427 ordering the Puerto Rico Ports Authority, Public-Private Partnerships Authority and Electric Power Authority to end contracts with NFEnergía LLC
  • Márquez Lebrón claims promised electricity savings never materialized and Puerto Rico now pays the highest electricity rates in its history due to NFE's monopoly on gas supply and 60 percent control of generation
  • According to the legislator the company has shown a pattern of reckless noncompliance including failure to deliver contracted gas leading AEE to buy additional diesel and disputes over the San Juan bay terminal
  • The resolution calls for an orderly transition and protection of strategic infrastructure in San Juan bay for both energy and goods distribution

Legislator Cites Pattern of Noncompliance

On Saturday, Oct. 24, the spokesman for the Puerto Rican Independence Party (PIP) in the House of Representatives, Denis Márquez Lebrón, announced the filing of a measure seeking to cancel all contracts between the government of Puerto Rico and New Fortress Energy (NFE) and its subsidiaries. NotiCel reported. The measure is House Joint Resolution 427.

The resolution directs the Puerto Rico Ports Authority, the Public-Private Partnerships Authority and the Electric Power Authority (AEE) to proceed with termination of their respective contracts with NFEnergía LLC and to begin an orderly transition, Metro Puerto Rico reported. Márquez Lebrón stated in written comments that the promised savings on electricity bills from handing over pier control to NFE for construction of the only northern gas terminal, conversion of generating plants to gas and the gas supply contract never occurred.

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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.

Denis Márquez Lebrón PIP spokesman in the House of Representatives
NFE ha demostrado un patrón de incumplimiento temerario con sus obligaciones a expensas del interés público que le ha costado al país mucho dinero

Our translation: NFE has demonstrated a pattern of reckless noncompliance with its obligations at the expense of the public interest that has cost the country a great deal of money

The source's own statement, as quoted by NotiCel. Not verified by PuertoRico.com.

Claims of High Costs and Economic Impact

Márquez Lebrón told reporters that NFE has demonstrated a pattern of reckless noncompliance with its obligations at the expense of the public interest, costing the country a great deal of money. Among the accusations are failures to deliver contracted gas, additional costs assumed by the AEE to purchase diesel and controversies related to operation of the gas terminal in San Juan bay, according to both outlets.

The legislator warned that the energy crisis goes beyond the electricity bill and directly affects economic activity, provision of essential services and the population's quality of life. He said sustained increases in energy costs caused the highest electricity rate hikes in history and that commercial organizations estimate thousands of businesses closed, resulting in the loss of tens of thousands of jobs. The crisis also affects hospital and health center operations and maintenance costs in residential condominiums, Márquez Lebrón added.

Call to Protect Strategic Infrastructure

The resolution also highlights the need to protect strategic infrastructure in San Juan bay for its importance to the energy system and its role in the entry and distribution of essential goods and supplies for Puerto Rico, NotiCel reported. Márquez Lebrón described the contractual relationship with NFE and its subsidiaries as having and continuing to have devastating consequences for well-being and economic development.

Where the sources differ

NotiCel and Metro Puerto Rico agree on all core facts: the filing of House Joint Resolution 427 by Denis Márquez Lebrón, the three agencies targeted, the main accusations against NFE, the claimed economic impacts and the need to protect San Juan bay infrastructure. The two reports contain nearly identical text in the quoted statements from Márquez Lebrón. Metro Puerto Rico's article is slightly shorter and omits the phrase describing NFE as a company in bankruptcy that controls 60 percent of the generation system, but otherwise the coverage is the same.

What the reports do not say

The reports do not state when the resolution was formally filed with the House, whether it has any realistic chance of passage, what specific steps an orderly transition would involve or the current status of the contracts with NFE. No response from New Fortress Energy, the affected agencies or the governor's office is included. Exact dollar amounts for claimed extra costs or job losses are not provided.

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.

  1. Reporting El PIP presenta resolución para cancelar contratos a New Fortress EnergyNotiCel (NotiCel) · noticel.com · Spanish · checked Oct 24, 10:35 AM AST
  2. Reporting Radican Resolución para cancelar contratos NFEMetro Puerto Rico (Metro Puerto Rico) · metro.pr · Spanish · checked Oct 24, 10:35 AM AST

How we checked this

Both NotiCel and Metro Puerto Rico reported the announcement by PIP lawmaker Denis Márquez Lebrón and quoted the same written statements from him. All details about the resolution's content, the accusations against NFE and the cited economic effects rest on the legislator's claims as presented in these two outlets.

EnergyNew Fortress EnergyPIPEnergy ContractsHouse Resolution

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.