Fernando Osorio Caño named PREPA interim director

Palo Seco PREPA power plant
The Palo Seco PREPA power plant. The executive director of PREPA resigned at the governor's request.
Bloomberg News

The executive director of the Puerto Rico Electric Power Authority resigned Thursday reportedly as a result of a disagreement on policy with the governor.

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Puerto Rico Gov. Jenniffer González Colón was unhappy that Mary Carmen Zapata wasn't following the same priorities as her energy czar, Josué Colón, and sought and received her resignation, according to a news report. 

Carmen Zapata couldn't be reached for a comment. The spokesperson for the governor didn't immediately respond. The spokesperson for PREPA couldn't be immediately contacted.

In the aftermath of the resignation, the board of directors appointed Fernando Osorio Caño, director of Hydroelectric Operations and Irrigation at PREPA, interim executive director.

Separately, on Wednesday, Power Expectations, a company involved in a contract to provide temporary power generation units, filed a lawsuit against PREPA in the U.S. District Court for Puerto Rico as a result of the contact's cancellation last month.

In mid-August the Puerto Rico Oversight Board revoked its approval, provisionally granted in early June, for a $5.9 billion contract with three private companies to provide temporary power generation units for 10 years. The parent of one of the three companies said it hadn't given its OK, leading the board to say the contract was no longer valid.

A few days later, PREPA also cancelled the contract, citing the Oversight Board's action and saying the subsidiary had failed to post the performance bond. 

The suit will give parties to PREPA's bankruptcy "more arguments for a receiver by bondholders," said John Mudd, an attorney in Puerto Rico. 

Meanwhile, energy czar Colón told a Puerto Rico legislative committee Thursday the Federal Bureau of Investigation and the Puerto Rico Justice Department had interviewed him concerning the contract. 

In other Puerto Rico business, on Wednesday the judge overseeing the suit by three Oversight Board members against President Donald Trump and his administration to regain their seats, made permanent her temporary injunction allowing the members to retain their seats. The action by U.S. District Court Judge María Antongiorgi-Jordan ends the case, but Trump may still be free to dismiss board members if he goes through proper motions. 


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Puerto Rico Puerto Rico Electric Power Authority Law and legal issues Public finance
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