Dear Natalie Jaresko, Jenniffer Gonzalez-Colon and PREPA Board ...
On behalf of our thousands of public shareholders, we were shocked by the blatant fraud put forward by PREPA to the FOMB and the FOMB willingness to acquiesce to the act.
At today's FOMB meeting PREPA provided a list of 15 projects to the FOMB for approval with a ranking system from 1 to 15 with the top two projects on that list chosen by the FOMB.
There were several issues of overt fraud that took place:
1) PREPA intentionally mistated our PPOA price at 9.85 cents per kwh when in fact our price was actually 8.84 per kWh. This 8.84 was documented many times to all parties.
This alone was a separate and distinct $3 million annual savings if reported correctly to the FOMB
2) PREPA intentionally mistated our transmission cost at $15.74 Million when the actual cost and what even the PREB stated in its report it was $3.8 Million. The extra $11.94 Million was to rebuild a PREPA transmission line that had no value to the project nor the ratepayers on our project, as it was not necessary for the project. This was requested by PREPA as their condition to grant us Board and PREB approval and was used obviously used as a hook.
In essence PREPA wanted us to upgrade lines that had no benefit to the Project or the ratepayers.
We were looking after PREPA's own transmission issues that are not related to the project. Even PREB knew that was not a project costs.
3) PREPA failed to state that our high 2 to 1 DC/AC ratio and excess battery storage provided the ratepayers another $100 Million plus in proven saving due to our extremely high capacity factor.
4) PREPA failed to state that PREB stated that our project saved the ratepayers an additional costs of over $254 Million due to cost savings.
The PREB approved our Montalva project number one.
The PREPA Governing Board approved our project. We negotiated for 9 years in good faith with PREPA.
PREPA then says today in documents that it submitted to the FOMB, we did not even make it past Stage one. Utter Corruption! If that was the case why did we make it to number one in the PREB, and approved by the Governing Board of PREPA and we had the Master PPOA since 2011
And here is another Irony:
5) The project that came in number one and that was approved by the FOMB today as number one, was the exact same project where the founder of that company called our lawyer, who is on this email chain, and myself, both of us on the phone at the same time and him telling us that he influenced PREPA and demanded a $150,000 Bribe to get our project approved. He stated he is the key guy that influences PREPA on these solar projects. We did not pay him BUT we did not doubt him because in fact this guy and a key PREPA official on this email chain (who was criminally charged back in 2013/2014 and still working for PREPA now), were both featured in a newspaper article stating "Pay for Play". If you need this gentlemen on this email, who is still working for PREPA to approve your project, you must pay this guy, the same guy who called our lawyer and me, asking for a bribe. His bribe request was followed by a text request a few minutes after the phone call asking for $150,000.
So in essense we have the number one solar project approved by the FOMB today as the number one project submitted by PREPA which is the same character who was in the papers from these same acts of bribery several years ago. Ironic is that the project was only 20MW last year but PREPA bumped it up to 60MW.
Natalie and Jenniffer and members of Congress:
We demand that the FOMB request and demand from PREPA the true cost benefits of our project to the people of Puerto Rico and the true, plain and full benefits to the ratepayers from our project.
We demand PREPA place the correct prices of our PPOA price, the correct transmission cost, the correct transmission benefits and the correct price benefits on its submittal back to the FOMB.
We demand a full investigation of all the technical documents, facts, correspondence and all inter-office memo from all parties regarding how PREPA chose the selection process with full analytics and non-interpretive data.
We further demand that the FOMB does not approve the 150MW projects until the investigation is over. PREPA is liable to our company. We had agreed with PREPA to stand down our $971 Million RICO lawsuit claim against PREPA for the sake of PREPA acting in good faith in approving a project that was awarded 9 years ago.
We have by far the lowest price (which PREPA and the FOMB were aware - but failed to state in the documents today) and we had the lowest transmission cost (which PREPA lied to the FOMB again and omitted those facts) and we provided hundreds of millions of dollars of ancillary benefits that PREPA officials know and that an honest prudent utility would understand as the lowest cost project, but failed to relay those facts to the FOMB, in favour of lesser projects and longstanding cronyism. Today was a disaster for the people of Puerto Rico and complete lack of honesty and integrity by PREPA and absolutely no oversight by the Oversight Board. A mere rubber stamp by the FOMB on the exact agency PREPA, that the FOMB claims in their own written word by Natalie as being dishonest.
This fiasco should be in front of Congress, the newspapers and the Congress of Puerto Rico. Today was another example of overt dishonesty, cronyism, corruption and full lack of transparency.
Jeff Ciachurski
CEO
Greenbriar Capital Corp
1-949-903-5906