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Puerto Rico’s $300M Electricity Restoration Plan

The ultimate resolution of both the deal-making questions and, more… (…)

The deal that Puerto Rico made with Whitefish Energy has been canceled. The ultimate resolution of both the deal-making questions and, more importantly, Puerto Rico’s power grid, remain. Questions abound, such as:

Is Whitefish Energy up to the challenge of restoring power to an island of 3+ million people, even though it’s a company that only had two employees the day the storm hit?
Was the contract negotiated in good faith, even though the firm is based in the same small town where the Secretary of the Interior grew up?
Were the terms of the contract fair to all parties, especially the taxpayer, electric consumer and rate-payer?

Those are not issues which we are willing to discuss. However, deals that get put together quickly often exhibit those types of concerns, which is why we think big deals should not be put together quickly.

Recovery Plan

What this situation reiterates is the need to plan for recovery before the disaster. Recovery planning is part dream work, part mundane detail. “What would a newly re-wired Puerto Rico look like?” is a question that should have been asked, and answered, years ago, and then updated as conditions and options changed. Recovery plans must include “Building Back Better.” One reason power was lost so pervasively is that most of Puerto Rico’s electric lines run overhead. Hopefully, rebuilding plans include more underground wiring and other mitigation efforts that will reduce future damage. Recovery without mitigation is denial.

Alternative Plans

Solar and wind energy could play a large role in serving rural communities. Political considerations impacting alternative energy sources must be dealt with before the disaster. We all know there will be plenty of opportunity for political finger-pointing and machinations after. As the economic and legal framework of energy sources change, recovery plans must adapt. Otherwise, we’ll rebuild coal-fired power plants and be at an economic and environmental disadvantage, rather than embracing the newest and most effective opportunities.

Prevention, Protection, Mitigation

Firms that have the potential to ramp up operations quickly and understand both the local infrastructure and political system are the ones that need to be identified early. It is possible a nimble firm like Whitefish is best equipped to hire local people, respect local culture and get the job done. But now we’ll never know.

Recovery is the most expensive, most unpleasant and longest-lasting phase of any disaster. This means we need to spend more time on prevention, protection, and mitigation. But it also means we need to spend more time on recovery planning and on quality after-action reports that can equip us with the knowledge to do better next time.

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Topics: Emergency Operations Plans, Hurricane, Response

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